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u/ursustyranotitan 1 day ago Stock Analysis

Value Investing is Dead (No AI)

Value investing as defined by most of its successful practitioners like Buffet, Peter Lynch is Simply Dead, a Young 30 year old Buffet would have agreed with me, in the end efficient market comes for us all , there was a great era 1950-2020 where in many markets it would have worked but eventually nature of securities market itself has changed drastically, altough basic principles if value investing will stay true as essentially buy low sell high is mathematically unbeatable, but . \- Today information is no longer scarce , 40 y ago from buffett to private equity everyone could find decent companies near their book value , that world does not exist any more , both information and debt access to exploit those oppurtunities is too easy to access. \- Successful companies stay private much longer , anthropic |oai will be defining companies of this era but you will only be buy them at 2T not 2B valuations . \- Tech Sector in virtually every large has soaked up most of the young prodcutive talent , a New Coca Cola today have no hope of playing against amazon or food delivery apps in long term , it is not about Ip, Capital Stock, Margins etc but instead talent diffrential is too high for any non tech company to capture huge rents for a long time without any serious pushback. I do not want to be a tech hypeman but so many people in this sub have only 1 thesis that 21st century will turn exactly the same as 20th , that will almost not how things will unfold in future .
8 comments held Reddit says 0 on reddit ↗
  1. u/Ancient_Bobcat_9150 1 1 day ago
    "practitioners like Buffet, Peter Lynch is Simply Dead, a Young 30 year old Buffet would have agreed with me". What a way to start a thread xD Buffet changed his mindset on value investing to finding high-quality companies at reasonable price, how is that strategy dead?
  2. u/No_Let_5065 1 1 day ago
    I think value investing dies in bull markets. Wait for the downturn
  3. u/FewUnderstanding2214 1 1 day ago
    Actually most investors are investing with index funds and US tech - so value investing has never been better.
  4. u/Embarrassed-Noise269 1 1 day ago
    lol Buffet: "Efficient markets are bullshit" OP: "Buffet would have agreed with me". Hundreds of years and people still don't understand the most basic things of economics. 
  5. u/thomassummer2021 1 1 day ago
    I’ve been doing pretty well value investing these past few years
  6. u/raytoei 1 1 day ago
    Okay. I will grant you your wish.
  7. u/shadow-wolf-88 1 1 day ago
    No matter how much information is made available to people or that the data points to an obvious negative financial evaluation of a company, human greed will transcend all and bypass market efficient
  8. u/raytoei 1 1 day ago
    Dear OP, I hope you never stop believing that.