Biotech Index Funds Will Outperform The Market Through 2026

Since 2011, Lockheed Martin has been compounding at a rate of 30% per year. It has beaten the S&P 500 by over fifteen points annually over that time frame. It is one of my greatest personal investment acts of omission to ignore it when it caught my attention in the $80s as it now trades around $240 per share for a solid tripling in the course of five years (plus the dividend got jacked up.) The reason why the stock prices of Lockheed and other defense manufacturers got so low in 2011 is that there was a strong political dialogue in the United States calling for the curtailment of aerospace and weaponry defense spending.

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Wal-Mart Stock: Value Investing Paying Off

One of the weird quirks that is necessarily associated with being a successful value investor is that attractive entry points are nearly always caused by the aftermath of a stock reporting some business conditions or adverse event that render it unfashionable. In other words, the “value” you find is almost always a direct result of concluding that the rest of the investor community is over-weighing the effects some business impairment will have on the firm’s long-term earnings and valuation.

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