“Value stock returns are impossible to estimate using the traditional methods, because most of the excessive return arises from the slow improvement in valuations that occurs as doggy stocks become less doggy over time.”

Source: The Four Pillars of Investing (2002), Chapter 2, Measuring The Beast, p. 68.

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "Value stock returns are impossible to estimate using the traditional methods, because most of the excessive return aris…" by William J. Bernstein?
William J. Bernstein photo
William J. Bernstein 29
economist 1948

Related quotes

“The cheaper the stock, the better the outlook for future returns.”

Robert Haugen (1942–2013) American economist

Source: The Inefficient Stock Market - What Pays Off And Why (1999), Chapter 4, Payoffs to the Five families, p. 50

Alfred P. Sloan photo
Eugene Fama photo

“Although size and book to market equity seem like ad hoc variables for explaining average stock returns, we have reason to expect that they proxy for common risk factors in returns.”

Eugene Fama (1939) American economist and Nobel laureate in Economics

Source: Common risk factors in the returns on stocks and bonds, 1993, p. 7

Eugene Fama photo
Daniel Kahneman photo

“Owning a portfolio of value stocks is the equivalent of wearing a Nehru jacket over a pair of bell bottom trousers.”

William J. Bernstein (1948) economist

Source: The Four Pillars of Investing (2002), Chapter 1, No Guts, No Glory, p. 37.

Joan Robinson photo

“It is impossible to add the stock of money to the flow of saving.”

Joan Robinson (1903–1983) English economist

Source: Contributions to Modern Economics (1978), Chapter 4, The Concept of Hoarding, p. 32

Related topics