John Dorfman Columns category, Page 3
John Dorfman: Bank of New York Mellon and Fox show value, momentum
Last year, momentum stocks were up 46%, growth stocks 36% and value stocks only 12%. As a longtime value investor, I find those figures (from S&P Dow Jones Indices) discouraging, yet also instructive. Let’s define our terms: • Momentum stocks are rising in price faster than the overall market. •...
John Dorfman: 6 cheap stocks with great 5-year returns
For years, my mentor, David Dreman, invested in Westinghouse Electric Co. The stock was cheap, often selling for about nine times the company’s per-share earnings. The stock price marched up nicely, yet the stock stayed cheap, because earnings were rising as fast as the stock price. That’s a value investor’s...
John Dorfman: Can analysts pick stocks? I doubt it
Can professional analysts pick stocks? Don’t laugh. Analysts perform many valuable functions. They ask probing questions of management, estimate earnings and provide a wealth of information on companies and industries. However, a study I’ve been conducting for a quarter of a century suggests they are no better at picking stocks...
John Dorfman: Robot Portfolio gained 22% in 2024
The Robot Portfolio returned more than 22% last year but was edged out by the surging Standard & Poor’s 500. Each year, the Robot — a naive stock-picking paradigm — generates a theoretical portfolio of 10 very unpopular stocks. The idea is that stocks advance by exceeding expectations, and low...
