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Deep Dive: Here’s a radical idea for stock picking: Weigh the price, not just the big theme

Updated with third-quarter numbers reported by BB&T on Oct. 18.

Investors are often impressed with a “big idea” while forgetting to consider how much they are actually paying to buy a company’s stock.

This approach can help you pick a winner in a rapidly growing industry, but it can also cause your portfolio to underperform over the long term. Value-based stock selection strategies have tended to trail growth strategies during the bull market, but their lower risk can increase overall returns over very long periods.

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