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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 .