Famed investor and Warren Buffett’s inspiration, Benjamin Graham once said: “Price is what you pay, but value is what you get.”
If the old Wall Street adage is true, we should all be seriously looking at value stocks in today’s market. As we’ve gotten potentially ahead of ourselves, value is quickly becoming the biggest asset when it comes to stocks. And some recent data on the markets show just why we should all be taking a serious look at “value stocks” once more.
A Surge in Growth Stocks
As the markets imploded back in the dark days of 2008/2009, investors took to the task of buying “growth” stocks. Everything was cheap at the time. The S&P 500 sank to the 600-point level. But, the idea was that investors were looking for those companies that could grow their earnings fast – no matter how the economic environment was doing. After the worst economic crisis since the Depression, no one really knew what the next few years would hold. So the focus on finding growth was warranted.