Author Topic: Why I Am Not A Value Investor  (Read 19601 times)

CorpRaider

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Re: Why I Am Not A Value Investor
« Reply #20 on: October 09, 2013, 07:11:19 PM »
Yeah, active investment strategies, especially value investing are definitely more popular than they were historically.  Indexing is on the decline, obviously.


ERICOPOLY

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Re: Why I Am Not A Value Investor
« Reply #21 on: October 09, 2013, 07:20:44 PM »
If only we had a 300 year old investor on the forum.  He'd probably tell us it was called something else before it was called "buy low sell high".  Then later it was called "margin of safety".  And he would expect if we waited long enough a new breakthrough label for it would be adopted.

The new generation always wants to challenge the orthodoxy and create something new of their own.  Leave their own thumbprint on time.

But the more things change, the more they stay the same.

wisdom

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Re: Why I Am Not A Value Investor
« Reply #22 on: October 09, 2013, 07:42:16 PM »
Value investing works because of human nature.

I do not think that is about to change anytime soon. So, value investing should provide someone who has the right temperament an edge.

merkhet

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Re: Why I Am Not A Value Investor
« Reply #23 on: October 09, 2013, 07:43:14 PM »
plus ça change, plus c’est la même chose

wisdom

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Re: Why I Am Not A Value Investor
« Reply #24 on: October 09, 2013, 07:47:56 PM »
I also look at value investing like evolution.

Asteroid hits - dinos are wiped out.

Mammals that were food for the dinos and tiny survive and prosper leading to humans who come to dominate.

Spoils go to the one who survives. This has been true time and again over billions of years. I do not think we could conduct a better experiment.

Value investing discipline allows you to be that survivor.
« Last Edit: October 09, 2013, 07:49:53 PM by wisdom »

oddballstocks

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Re: Why I Am Not A Value Investor
« Reply #25 on: October 09, 2013, 07:57:17 PM »
plus ça change, plus c’est la même chose

mais, mais, mais.....
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ragnarisapirate

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Re: Why I Am Not A Value Investor
« Reply #26 on: October 09, 2013, 08:00:45 PM »

-I have thousands of readers on my blog, I blog exclusively about these little value stocks, I can't even begin to count how many people have said they enjoy reading me, but would never invest in anything I write about.  I would conservatively estimate that's about 70% or more of my readers.


I don't have nearly the readers that you do, but, I do agree that a lot of the people reading my stuff don't invest in a lot of the things I talk about (that said, I own a fraction of the stocks you do).

I do agree that the value field is getting crowded though- but, it seems like it gets crowded in a bull market, where people start seeing the good returns that value guys got when the market started rising in the previous recession, and wanting to emulate... There are a ton of nano cap stocks that are now talked about as value plays, when they are trading for 3-5x what they were in the recession- and considered total piece of shit stocks (that were actually great little companies) EVI, IBAL, and a host of others... Packer could name off a ton of this regional radio carriers (that, I by the way, was too stupid to invest in despite him telling me too!). Same thing with a lot of the regional banks (well, financial institutions in general) now.

What I am getting at, is I want to see what this forum, or the value investing community looks like when a whole bunch of us make a bunch of bone headed decisions for a year or 2 in the next downturn...

txlaw

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Re: Why I Am Not A Value Investor
« Reply #27 on: October 09, 2013, 08:06:37 PM »
If only we had a 300 year old investor on the forum.  He'd probably tell us it was called something else before it was called "buy low sell high".  Then later it was called "margin of safety".  And he would expect if we waited long enough a new breakthrough label for it would be adopted.

The new generation always wants to challenge the orthodoxy and create something new of their own.  Leave their own thumbprint on time.

But the more things change, the more they stay the same.

Wise words. 

I find it hard to believe that Ben Graham "invented" value investing.  Buy low, sell high is what merchants, investors, and bankers have been trying to do for aeons.  Graham just created a nice intellectual framework for capital markets investing.

LC

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Re: Why I Am Not A Value Investor
« Reply #28 on: October 09, 2013, 08:07:52 PM »
Buy low and sell high is an old fad, not a new one.

I suppose you might question whether "value investing" is any different than "buy low and sell high"?  Seriously, I don't think they are different.
I agree. "Value" investing is simply the rationalizing of why one should buy low and sell high
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stahleyp

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Re: Why I Am Not A Value Investor
« Reply #29 on: October 09, 2013, 08:10:36 PM »
Yeah, active investment strategies, especially value investing are definitely more popular than they were historically.  Indexing is on the decline, obviously.

Are you sure about that? Virtually everything I've read suggests the opposite. Active is still the bigger piece of the pie by a large amount but indexing has grown a lot.

For example,

"Since September 2008, assets of passively managed U.S. and foreign stock mutual funds have doubled to $1.31 trillion, according to Morningstar. By contrast, assets in actively managed mutual funds are up 28% in the same period to $4.58 trillion.

Demand for exchange-traded funds, or ETFs, also has exploded since 2008. They now hold $1.5 trillion. ETFs, which trade on stock exchanges, are designed to replicate broad or narrow market indexes."

http://www.latimes.com/business/la-fi-1006-main-funds-20131006,0,409152.story?page=2
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