Enterprising Investor Forum

Today we are showing you some data on stocks, focusing on the value/growth and large/small split.

As we saw yesterday, over the long-term, stocks outperform all asset classes and smaller companies give the best returns. However, is this true for all large cap and small cap stocks?

The Graph only shows data up to 2002 but it is interesting to note that when we add the growth/value variable, value outperforms for both small cap and large caps stock and the performance gap increases exponentially all the way to small cap value.

Tomorrow, in the last part of this series, we will look at how large and small caps perform after recession…