Historically Best Performing Stocks


Posted in: Stock Market, Thought of the Week

One dollar invested in 1927 in the best performing stock group, small-cap value stocks, would be worth $45,144 at the end of 2005. Studies have shown that value stocks, or stocks with low price-to-earnings multiples, outperform growth stocks, or stocks with high price-to-earnings multiples, over the very long run. Value stocks typically result from situations where markets tend to overreact to negative news and many of these stocks “go on sale.”

Patient investors can profit greatly if they can find value stocks on the rebound. However, you must be able to make a distinction between a value stock and a growth stock. Read this week’s Thought of the Week to find out what our investment committee is searching for in value stocks.

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As an Investment Advisory Representative working in conjunction with Global Financial Private Capital (GFPC) we are provided weekly thoughts on what is happening in the economy and the market.  Written by our investment committee at GFPC we find these thoughts to be informative and interesting.

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