Archives for April 2026

I’ve shown that momentum and growth generally fail, and since 1990 small caps have disappointed. I now explain why value typically succeeds. Over the past couple of months, analysing monthly returns in the U.S. since January 1926, I’ve demonstrated that value stocks greatly outperform “momentum” stocks (for details, see Why value investing crushes momentum speculation, … [Read more...] about Why value investing usually outperforms

Conventionally defined and considering their greater risks, they outperform “growth” stocks – but not mid-caps, large caps or value stocks. Do the stocks of companies whose market capitalisations are relatively modest (“small caps”) outperform “large caps”? During the 1980s and 1990s, finance academics’ conventional – indeed, foundational – wisdom was unequivocal: they … [Read more...] about Why intelligent investors avoid small caps