Dow vs S&P 500 total return, 1950-2018

How to Beat the Market, Factor 3b: Avoid the Biggest Companies, Remember Dow vs S&P

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“Buy a low cost, passive index fund, and hold it for the long term” is probably one of the most mainstream pieces of investment advice circulating over the past 40 years.  While I agree this is a better solution for most busy investors than the high overhead, high fee, and high turnover investment products that […]

US Large Growth vs Small Cap Value, 1980-2018, by Russell Indexes

How to Beat the Market, Factor 3: Buy Small Cap Value, Not the Big “Glamour” Stocks

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For the third factor in this series, I wanted to highlight two of the most “classical” factors for classifying and selecting stocks: size (large vs small) and cheapness (growth vs value).  These factors were perhaps most famously identified by academics Eugene Fama and Kenneth French, and popularised in the 3×3 grid used by Morningstar to […]