November 13, 2019
Myth: Low P/E Stocks Outperform High P/E Stocks
By Robert Zuccaro, CFA
Most academic studies conclude that the value investment style beats out the growth style in seeking high returns. However, there is a divide between academia and the real world as the vast majority of top performing funds over the past 40 years have been growth funds – not value funds. The principal distinction between the two investment styles centers on price-to-earnings ratios, comparatively high P/E’s for