Still, I remain loyal to value investing. In fact, I like it better than ever. First, academic research shows clearly that value beats growth in the long run. You shouldn't let the flash of the latest glamour stock draw you in to paying ridiculous prices for earnings. And, third, value investing is simply more intellectually challenging, more fun.
Growth investing is like picking favorites at the racetrack.
Of the thousands of funds tracked by Morningstar Inc., the Chicago research firm, Hickory ranked second for total returns over the past five years, second over the past 12 months and 16th over the past three months. The fund was launched in April 1993 but did not start posting eye-popping numbers until 1995. If the answer is significantly more than the market price, then Lawson may buy it. Over the past few years, he has been buying cable and cellular stocks, which were much unloved on Wall Street. Suddenly, as a result of takeover deals and brightening earnings, these stocks have shot up.