Mea Culpa re Growth versus Value

  • SumoMe

It’s Mea Culpa Time.  In my article on November 12th, titled “When to Value Value”, I made a mistake that I still cannot believe I made.  Even now.  Anyway, first the Good News.

The Good News is that none of the performance numbers listed in the article change.  So the system still remains a meaningful improvement versus buy-and-hold.

Here’s the Bad News: When I noted which price data series was being used when a long position was taken, I somehow got it in my head that it was taking price data from the “Value” column.  It was not.  The price data used during long positions come from the “Growth” Column.

In other words, the article should rightly be titled “When to Value Growth”.  So to be clear (for a change), when the calculated value in question is negative, an investor would hold GROWTH stocks (NOT VALUE stocks).

My thanks to an alert reader who tried to replicate my results and got way different numbers and alerted me to his findings.  After reviewing things I finally realized my error.

I apologize for any inconvenience.

The link to the corrected article: