The rise in pure value investing is a mistake

portfolio strategy

Warren Buffett has re-emerged as a guru after a tough time at the end of the 1990s boom but there is a lot more to making money for clients than buying cheap stocks - they have to be good

Value investing is back in vogue - after the heady growth years of the late 1990s, value investors and stocks are making a strong comeback. According to Lipper's Fund Flows March 2004 report, value funds attracted $5bn from mutual fund investors, compared with a negative $12bn outflow in March 2000, while $2.1bn drained out of growth vehicles in March 2004, compared with a $28bn inflow four years earlier. In addition, archetypal value investors such as Warren Buffett and Mario Gabelli are once again being consulted as gurus. In some ways, this is unsurprising. One of the key axioms of fi...