Does Active Value Investing Pay Off

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Countless academic studies support the notion that over time you will substantially increase your odds of out-performing the stock market by employing a simple value investing strategy – buying stocks with relatively low price-to-earnings, price-to-book and/or price-to sales ratios.

However, if value investing really works, why do so many “value investors” fail to achieve the payoffs suggested by academic studies?

A recently published paper explored why active value investors under perform and offered some tips on how to improve your value investing process.
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Source: Investopedia

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