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The Best Road to Capital Gains

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Out-of-favor stocks are the best road to capital gains.
The results of the hypothetical portfolios published in my column have deepened my long-standing conviction that a value style is the wisest investment course.
For example, the so-called "Robot Portfolio,'' an annual collection of stocks with extremely low price-earnings ratios, has heightened my resolve to go against the crowd and buy stocks that are unpopular.
That portfolio contains the 10-lowest P/E stocks among all U.S. stocks with a market value of $500 million or more, debt less than equity, and positive earnings.
Over the years, this paradigm has pointed to fruitful opportunities.
Tags: contrarian, P/E