Schroders' Kirrage: What value investing has in common with Forrest Gump

Patience, determination and resilience key

Forrest Gump is rewarded for his determination and resilience in the face of vicious storms in the eponymous 1994 film. We believe returns could be bountiful for the genuinely long-term and patient value investor too.

The past decade or so has not been kind to value investors. Not only are we that much older, we're that much greyer as a result of performance that has left even the most hardened of us battered, bruised and battle-scarred. Value investing involves buying stocks that are undervalued (cheap relative to their true underlying value) in the hopes that share prices will recover to reflect this true value. This is in contrast to growth investors who focus instead on the potential for growth in a company's earnings rather than its valuation. Value's returns are the worst they've ever been...