Book me in

Low price-to-book stocks outperformed the market. But there’s a catch.

Walter Schloss, a famed value investor, was well known for buying stocks that traded far below book value. “I really have nothing against earnings except that, in the first place, earnings have a way of changing… I find it more comfortable and satisfying to look at book value.” Thanks to this strategy, Schloss returned 21% a year, on average, for 28 yea…