Value Investing: Patience Will Be Rewarded

It is difficult to know how long it will take for an attractively priced asset to appreciate towards its fair value, long-term investors must be prepared to wait

Tanguy De Lauzon 5 February, 2018 | 7:41AM
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Value investing has a prominent place in our investment process and is backed up by a vast body of empirical evidence that supports this approach to investing.

Perhaps it can be best described through illustration in the diagram below:

The relationship between an asset's value, price and returns

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Tanguy De Lauzon  is Head of Capital Markets & Asset Allocation for Morningstar Investment Management EMEA