ULTA - Successful Value Investing Changes Drastically In 2020

• Some investors claim value investing is dead and will remain dead post-Covid. This is based on their annual underperformance compared to growth of 6.1% since 2007, which worsened in 2020.
• Most investors claim that this is caused by incremental power of tech stocks and 0% interest rates. This article refutes this and provides the two real reasons behind the underperformance.
• Value stocks are very likely to outperform over the coming years. However, to be successful with value investing, one needs to drop its old definition which has become irrelevant today.
• This article provides a new definition of value stocks, which has outperformed the old definitions by 7.6% and 21.5% this year. The 50 S&P 500 stocks which are ranked the highest on this metric are provided.
• Moreover, I add another dimension to this strategy which more than doubled the S&P 500 return over the past decade. My favourite pick of this strategy is discussed at the end of the article.

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