Fall of the mightiest!

A strategy report on Lehman Brothers’ website (which still exists!) talks about the benefits of investing in value stocks as opposed to growth stocks that were no longer cheap at the time of release of this report (April 2008). Interestingly, the report lays specific emphasis on investment in stocks of financial companies.
The writer of the report then thought that stocks of financial companies comprised around 80% of deep value stocks available in the US markets. Simply put, ‘deep value’ stocks are those that are attractively priced in relation to expected future earnings growth.
Look what has happened to these stocks thereafter (including the ensuing performance of Lehman’s stock)!


Source : Yahoo Finance