Legendary investor, Benjamin Graham, said it best in summarizing his 50 years in the investment business. He said that the key to being successful in investing was to ignore everything else and focus on two key principles:
1. Invest with a discipline which helps you to avoid overpaying for your investments. The disciplines he recommended were price/earnings, price/book and dividend yield.
2. Be a long-term investor (i.e. 5 years).
All of our strategies incorporate these principles and our historical studies and experience suggest that both compound annualized returns and rolling 5-year returns benefit from investing in low price/earnings, low price/book, and high dividend-yielding stocks.