The Problem With Value Investing

value investors are typically hunting around in that it's not most popular stock but its prospects are still pretty good given where the price is and so that's how it generates returns. Tobias: In early 2000s there were paradoxically the very best stocks the highest returns on equity highest returns on assets were in the value stocks which were also very cheap. Between 2010 and 2015 value itself got overvalued, he says the spread between the most overvalued and the most undervalued was as tight as it has ever been. "I spent some time in the penalty box over the last sort of five or six years trying to figure out what went wrong"