Growth/Value Spread At New Marginal High

Every strategy has good and bad years, this year value has done fantastic, while last year was the worst ever for it. However, by sticking with the strategy in bad times, we were able to buy stocks at deeply undervalued prices, allowing us to capitalize on the recovery, which in our estimation, is still in the very early stages. The flip side to buying some of these growth names or the overall indices at current prices is that there will be periods when the market assigns a far lower multiple on earnings and cash flows on these same businesses. When that occurs, you can easily get a lost or negative decade of investment returns, like we saw after 2000 for growth and the indices, which was the most comparable period in terms of valuations. The value investors that looked like idiots back in 1999, looked really smart by not losing everything when that bubble crashed. We intend to carefully navigate what we believe to be almost an Everything Bubble, so that your hard-earned capital is protected and grown in an intelligent and thoughtful manner over the long term, with the full knowledge that we will look like idiots in some of those years, as is indeed an inevitable reality of the business. Our success will be best judged over the long term and in helping you and your families achieve your financial goals and objectives.  

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