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QuestionsCategory: MiscellaneousDead of Value Investing?
Calvin Chua asked 1 year ago

I came across a YouTuber trashing Value Investing and even pronounce that value investing is Dead, what’s your take on this? https://www.youtube.com/watch?v=lcqW9pKeZVs 

2 Answers
Jieren Zheng answered 1 year ago

I would like to think that Buffett keeps to his circle of competence which tech isn’t his forte (hopefully his successors are). I think he mentioned it before during one of his interviews or AGM.
He got into Apple because of likening it to a luxury brand rather than a tech brand.
As a result, I think partly because tech is changing the industry just like the industrial revolution years back, tech is growing leaps and bounds. So it would be expected for Buffett to lag the S&P500.

Value investing, in my opinion, deriving a fair valuation for the good to great business considering the factors such as the macro (industry trends) and micro (company growth itself). From there we seek to acquire them at decent valuation rather than the overt focus on growth and overpaying.

 

 

Victor Chng replied 1 year ago

Thanks JR

Jieren Zheng replied 1 year ago

Welcome!

Victor Chng answered 1 year ago

Hi Calvin,

Personally, I don;t think value investing is dead as it just evolve. I believe I am still practice value investing by purchasing in great business. Like JR had mentioned about valuation, I think valuation had changed compare to Buffett era. With more investor turning more savvy, the valuation of company are getting more efficient as compare to the past.