The Intelligent Investor's Almanac
Your Bi-Weekly Guide to Markets, Movements, & Money.
Presented By Ken Majmudar & Ridgewood Investments
Issue 5 • May 1 to May 15, 2025
Never miss another valuable edition of The Intelligent Investor's Almanac again.
Your TL;DR Institutional Intelligence
- Market insight: Memory of past experiences can blind investors to changing realities.
- Strategic Opportunity: Value stocks and international markets may be entering a period of relative strength after a decade dominated by U.S. growth stocks.
- Retirement Insight: Portfolios anchored too heavily to past winners may risk missing newer opportunities.
- Action Point: Diversify thoughtfully to benefit from changing market dynamics.
The Value Investor
Ken Majmudar, CFA & Founder of Ridgewood Investments
At Ridgewood, we often say that the biggest risks investors face aren’t created in the markets; they are often internal and emotional in nature.
Jason Zweig, who writes for The Wall Street Journal, says our past investing experiences, what he calls ‘memory banks’, can blur how we view the future
When we grow accustomed to growth stocks dominating or the U.S. markets leading the world, it’s easy to assume that these patterns will persist indefinitely. But history shows otherwise.
For instance, if you’ve seen U.S. tech stocks dominate for the last few years, it’s natural to assume that trend will last forever. But markets rarely stay on the same track.
At present, we’re keeping an eye on two shifts that could reshape investment returns over the next decade or more:
- Value stocks may be making a comeback.
- International markets could outperform the U.S. in the years ahead.
Below, we share our thoughts on these shifts and how Ridgewood is helping our clients navigate them thoughtfully.
Value vs Growth: A Rebalancing of Fortunes
Over the past decade, growth stocks have captured both capital and imagination, with mega-cap technology names pushing the S&P 500 to record highs. Many investors developed the collective memory that “growth always wins“.
However, historical data paints a broader picture:
- Throughout the 20th century, value stocks consistently outperformed growth stocks.
- Inflation, rising interest rates, and economic turbulence have historically favored companies with strong fundamentals and reasonable valuations.
At Ridgewood, we’re starting to see early signs that a shift may be underway
- Value stocks are starting to outperform in certain pockets.
- Growth valuations remain stretched, while value trades at attractive discounts.
- Market turbulence historically boosts value’s resilience.

This chart shows that while growth has outperformed significantly since early 2023, it underscores how cyclical these leadership trends can be, setting up the opportunity for the resurgence of value stocks.

The top 10 U.S. stocks – Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, Tesla, Broadcom, Berkshire Hathaway, and Eli Lilly now account for a historically high share of the S&P 500’s market cap.
This reflects a growing overconcentration in growth stocks like Technology and Consumer Discretionary sectors, while value stocks are more evenly spread across resilient sectors like Financials, Healthcare, and Energy. A well-diversified value portfolio offers greater protection during periods of market turbulence.
The Bottom Line:
A different investment environment may lie ahead and staying anchored to what worked over the past decade may leave investors unprepared for what’s coming next. As always, we at Ridgewood Investments ensure that your portfolio is properly balanced and diversified.
International vs USA: A Global Reawakening
Another common memory bias among U.S. investors is the belief that American markets will always lead global returns. Recent decades, dominated by technology-driven U.S. growth, have only reinforced this perception.
Yet, history tells a broader story:
- From 1971 to 1990, international equities consistently outperformed U.S. stocks.
- Today, valuations abroad are meaningfully lower, offering better margins of safety.
- A weaker dollar and structural economic reforms internationally create further tailwinds.
- Ironically, the Trump administration’s America first agenda may actually be a catalyst for greater international stock performance as other countries unwind their dependence on U.S. corporations.
We believe thoughtful geographic diversification is essential to future-proof a portfolio. As the chart below illustrates, no one asset class, style, or geography stays on top forever.

History shows that country leadership rotates when investing in stocks. A globally diversified portfolio reduces concentration risk and positions investors for opportunities outside the US.
Building on this belief, we focus on crafting resilient, forward-looking portfolios that embrace change rather than resist it, tilt toward value, increase international exposure, and maintain flexibility across styles and geographies.
By consciously overcoming the biases of memory and path dependency, we try to position investors to survive and thrive in a highly global and dynamic economy.
Dynastic Wealth – Tips on Preserving and Building Your Legacy
How to Anchor Your Wealth Strategy on Sound Principles: Insights from Mimetic Theory
At Ridgewood, we believe that lasting wealth is not just accumulated, it’s carefully cultivated with clarity of purpose.
One of the less-discussed threats to legacy wealth is mimetic desire, the tendency, first explored by social theorist René Girard, for humans to unconsciously imitate each other’s goals and desires. Over time, mimetic dynamics can drive families to chase ambitions that are not truly their own, risking both wealth and well-being.
In today’s hyperconnected world, this influence is even stronger. A scientific study shows that social comparisons increasingly push affluent investors toward unnecessary risk-taking. Anchoring your financial goals to authentic family values can help resist these pressures.
A comprehensive 20-year study by the Williams Group found that 70% of wealthy families lose their wealth by the second generation, and 90% by the third. This often happens when families lack a clear legacy plan and open communication, leading younger generations to adopt external cultural spending habits instead of upholding family financial values.
As Carl Jung wisely said,
“The world will ask who you are, and if you do not know, the world will tell you.”
At Ridgewood, we counsel our clients to consciously build dynastic wealth by anchoring financial strategy to personal and family authenticity.
Here are three actionable reflections we recommend:
- Define Your Measures of Success:
Are the financial goals you are pursuing genuinely your own, or borrowed from societal expectations?
Taking time to articulate personal and family definitions of success can anchor your planning in authenticity. - Clarify Values Before Strategy:
Before determining investment strategies or philanthropic commitments, ask:
What core values do I want my wealth to reflect and sustain across generations? - Create a Legacy of Intentionality, Not Imitation:
Consider setting intentional “legacy statements,” short written declarations of your vision and principles, to guide family decision-making over time.

In wealth management, this insight is vital. Without a clear vision of the purpose your wealth will serve, it’s easy to be swept away by external expectations and passing trends. As mimetic theory teaches us, much of what we desire is unconsciously copied from others.
When families lose clarity over their financial purpose, wealth creation is often risked across generations. But when values are consciously defined, wealth becomes a tool for building enduring legacies.
At Ridgewood, we help clients not only grow and protect their assets but also anchor them to a deeper sense of personal and family identity, ensuring that financial success compounds across generations, guided by authentic goals rather than borrowed desires.
Here’s to building lasting wealth,
Ken Majmudar, CFA
Founder & Chief Investment Officer Ridgewood Investments
P.S. If you’re ready to explore how our institutional-grade investment approach can work for your portfolio, let’s schedule a time to talk below.
Gain Industry – Level Intelligence For Your Investment Strategy
Transform your approach to wealth building with institutional-grade insights. Schedule a private discovery call with Ken and the Ridgewood team to:
- Analyze your current portfolio positioning
- Explore sophisticated investment opportunities
- Design your personalized wealth architecture
Building generational wealth requires institutional-grade thinking. Let’s discuss how our sophisticated approach can work for your family’s future.
Important Disclosure: Ridgewood Investments is a registered investment adviser. This newsletter is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results.