Benjamin Graham, the father of value investing, once said: "If we assume that it is the habit of the market to overvalue common stocks which have been showing excellent growth or are glamorous for some other reason, it is logical to expect that it will undervalue - relatively, at least - companies that are out of favour because of unsatisfactory developments of a temporary nature. This may be set down as a fundamental law of the stock market, and it suggests an investment approach that should be both conservative and promising." In a nutshell, that is what my annual Bargain Shares portfolio is all about.
subscriber-only content
visible-status-Subscription-Only story-url-SIMON THOMPSON_MAGAZINE COLUMN_IC_081112.xml
