FRD - Deep Value Index Posts Strong Outperformance Vs. Nasdaq During COVID-19 Pandemic
It has not been easy being a value investor over the last ten years. Berkshire Hathaway (BRK.A) (BRK.B) has lagged the Nasdaq by almost 400% since the beginning of 2010. It is hard to pinpoint the exact reasons for this divergence in results, however, my view is that low interest rates globally have been an important factor, since when long-term yields decrease, growth stocks (with higher estimated cash flow durations) will necessarily outperform.
Source: Seeking Alpha, Author analysis.
Instead of comparing Berkshire with Nasdaq, we can also compare ETFs tracking Value and Growth