Maybe You Shouldn’t Buy What You Know

March 10, 2015

Elaine's Idle Mind

The most popular stocks among young people: Amazon (AMZN), Apple (AAPL), Google (GOOG), Netflix (NFLX), GoPro (GPRO), Alibaba (BABA), Tesla (TSLA), Facebook (FB), LinkedIn (LNKD), Twitter (TWTR), Blackberry (BBRY). Trendy consumer tech stocks.

Stocks with Youngest Median Owners Stocks with Youngest Median Owners

Old people are also buying what they know. That’s why they buy companies that sell life insurance and cancer drugs and sliced cheese.

Stocks with Oldest Median Owners Stocks with Oldest Median Owners

This is what you have to look forward to as an old person. However, here are the stocks charted based on fair value (a combination of P/E, P/S, shareholder value, EBITDA/EV, FCF/EV).

value stocks

Each column represents the decile of a company’s valuation, and the numbers indicate the historical excess return by valuation for the last 50 years.

Old people are buying value stocks…

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