GMO’s Quality White Paper

quality

GMO’s Quality White Paper

The fund management company GMO has had previously released a particularly instructive white paper for value investors called “Profits for the Long Run: Affirming the Case for Quality”.  GMO has since taken the paper off their website.  I re-release it here for those investors who are interested in the findings.  The chart above is included in the white paper and is a summary of the whole white paper.

In short, low-risk stocks are more profitable and high-risk stocks are less profitable.  You can erase the concept of “nothing ventured ,nothing gained” off your investment dictionary.

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