Fifteen favourite fallacies

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3. "Growth always wins in the end/Value always wins in the end"

Some investment writers argue passionately that growth strategies always beat value in the end. Others state the opposite with equal conviction. Neither is (wholly) right. The 40 years' worth of data gathered by James O'Shaughnessy in his study 'What Works on Wall Street' indicates that:

1. The best growth and value strategies worked equally well over the long term.
2. The best growth strategies include value factors.
3. Both types of strategy occasionally underperformed for long periods.

Some argue this entire debate is not just futile, but ridiculous.

Robert Hagstrom, The Warren Buffett Way.

Whichever strategy you follow, you should choose it because it suits you, not because of the extravagant claims made for it in the latest financial best-seller.

1. "Investing is just gambling anyway, so why not take a few chances?" 2. "You've got to speculate to accumulate" 3. "Growth always wins in the end/Value always wins in the end" 4. "Blue chips are best/Smaller companies are best" 5. "Penny shares are the best value for money" 6. "It's such a great company, I can't go wrong" 7. "But just look at the dividends" 8. "I've got to be in technology/biotechnology/telecoms etc" 9. "I missed that one, I'll catch the next one" 10. "Paper losses aren't real" 11. "I'll never go broke taking a profit" 12. "It can't possibly go any lower" 13. "It can't possibly go any higher" 14. I can't sell because of the tax bill 15. "This time it's different" 16. Conclusion

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