The secret behind the outperformance of value stocks - RET.AValue does not beat growth, its rival strategy, every year. In fact, there are many years in which value stocks (low price-to-earnings or price-to-book) underperform growth (high P/E or P/B).
Reitman with do well in the long run its low P/E or P/B ...tempers expectation. Each time its earnings surprises, the stock will jump ...as it exceeds expectation. If the earnings disappoint, it will only decline marginally as its low p/e or p/b provides a floor. Compare this to Google or META or NETFLIX who disappointed in 2022 ..-45% to -70% from its 52 week high.
https://www.theglobeandmail.com/investing/investment-ideas/article-the-secret-behind-the-outperformance-of-value-stocks/