Figure 1 illustrates the variation in three-year relative return performance of four value and growth strategies.

FORBES: Value Stocks are in the Eye of the Beholder

Higher dividend growth among a value stock index relative to a growth index is a result (or benefit) of reconstitution and rebalancing rules, according to Chaves and Arnott.

FORBES: Value Stocks and Dividends

Berkshire, which acquires undervalued companies that it believes represent great value relative to future earnings growth, should be one of the core stocks in any portfolio, Leeb advises.

FORBES: With Economy Chugging Along, Rail Stocks Seen As Best Transport To Higher Gains