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I agree that undiscovered companies that grow their earnings is the best, even better if they are at an inflection point between break even and profitability. Harder said than done, as it requires a lot of digging.

Pure cheapness works better in a basket type of approach, then statistically some rerate or provide good capital returns, while others stagnate, with no investor interest. But sometimes investor interest comes back without even improvements to the business (Alibaba, BATS).

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