Like Benjamin Graham, I prefer the phrase “buy cheap and sell dear” instead of “buy low, sell high,” because it gauges investment merit based onvaluationrather than price alone. It also helps to remind investors that changes in valuation can have profound effects on long-term returns. If...
A contrarian timing approach—emphasizing factors or strategies trading cheap relative to their own historical norms, and deemphasizing the more expensive factors or strategies—can improve performance, but should be used in moderation to avoid increasing portfolio risk from a loss of dive...