The Investor - Moneyweb's monthly investment magazine Issue 4 | Page 7

IT’S NOT BY DOING WHAT THE INSTITUTIONS DO. Is everyone a value investor now? And if so, how is it possible to outperform the market? A value investing strategy involves selecting companies with certain metrics that indicate they offer value. The most common are a high dividend yield, low price:earnings ratio and high book value relative to the price. The strategy received a lot of great PR when the dot.com bubble burst in 2001, and all those investors who avoided sexy IT stocks with sky high valuat