“Value
investing doesn’t always work. The market doesn’t always agree with you. Over
time, value is roughly the way the market prices stocks, but over the short
term, which sometimes can be as long as two or three years, there are periods
when it doesn’t work. And that is a very good thing. The fact that our value
approach doesn’t work over periods of time is precisely the reason why it
continues to work over the long term.” –Joel Greenblatt (as quoted in the book Hedge Fund
Market Wizards)
