Stocks for the Long Run provides the most complete summary available of historical trends that will help you develop a sound and profitable long-term portfolio. And the viability of value investing as a long-term strategy.
Well researched and supported by 200+ years of data, Professor Siegel’s book makes a compelling case that stocks historically have provided far higher returns with (this is surprising) less risk that other asset classes for the patient investor with the right time horizon.
The book also makes three points so clearly and demonstrated them so forcefully with historical data and mathematical analysis:
1) Stock returns regress to a mean, as bonds, and all other investment alternatives, do not;
2) Stocks are both much more volatile short-term and much less volatile long-term, than Modern Portfolio Theory says
they should be;
3) Value strategies (on low-P/E, high-dividend stocks) consistently surpass the market indices by 2% or more in annual compounded returns.
The 1st edition of this book was written in 1994 and has been consistently updated since then to include the 2008 financial crisis, the emergence of China and India, global markets prospects and markets valuation forecasts.
