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How To Hunt For Deep Value Stocks With Bravery Over Patience

Everyone loves a bargain but choosing a strategy for finding mispriced shares isn't as simple as it seems. Eighty years after Ben Graham and David Dodd laid the groundwork for what's known as value investing, some of the brightest minds in finance are still working on the best ways of capturing deep value. Given that research has long shown that cheap beats expensive over the long run, honing a value strategy is clearly worth exploring. So where do you start?

When Graham and Dodd wrote Security Analysis in 1934, they changed the rules on how investors should think about stocks. Chastened by catastrophic stock market losses a few years earlier, they urged investors to stop chasing expensive "glamor" and obsessing about earnings growth. Instead, they showed that it was mispriced and undervalued stocks that offered the best chance of outperformance.

Ever since, investors have deployed an armory of metrics… Read More …