In a later study in which they extended the time horizon across a value - weighted market portfolio of the major US stock exchanges, both the small cap size and
value premium persisted.
The paper concludes that
the value premium persists for the world's developed markets in aggregate, and on an individual coutry basis.
Not exact matches
John Mauldin points to the psychological factors that cause the
value premium to
persist.
Just to play the devil's advocate, Bogle, Malkiel and Sharp appear to say that non-market cap weights in an index represent an attempt to tilt toward
value and small cap stocks, and that proponents incorrectly assume the historical
premiums on these sub-sectors will
persist into the future (investors tend to arbitrage away excess profits once detected).
Like a lot of fast - growing stocks, this stock appears mildly over-valued from a
value investing perspective — I suspect, however, that a potential takeover
premium's probably built in, and will
persist...