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Optimal Finance Daily - Financial Independence and Money Advice

3523: Is Value Investing Dead by Vitaliy Katsenelson of Contrarian Edge on Value Investing

Optimal Finance Daily - Financial Independence and Money Advice

Optimal Living Daily LLC

Investing, Self-improvement, Education, Business

4.51.3K Ratings

🗓️ 12 April 2026

⏱️ 12 minutes

🧾️ Download transcript

Summary

Discover all of the podcasts in our network, search for specific episodes, get the Optimal Living Daily workbook, and learn more at: OLDPodcast.com. Episode 3523: Vitaliy Katsenelson challenges the idea that value investing is obsolete, explaining how low interest rates and inflated expectations have skewed performance in favor of growth stocks. Drawing on timeless principles from Benjamin Graham and Warren Buffett, he presents value investing as a disciplined, long-term philosophy that prioritizes price and realism over market hype. Quotes to ponder: "Value investing to me is a philosophy that is governed by what I call the six Commandments of value investing" "Something is overvalued doesn't mean it can't get more overvalued" "You can turn any investment into a bad deal by paying too much" Episode references: The Intelligent Investor: https://www.amazon.com/Intelligent-Investor-Definitive-Value-Investing/dp/0060555661 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Jamie Lang and Sophie Haboo have arrived on Disney Plus.

0:04.5

We're having a baby.

0:05.5

We're having a baby.

0:07.2

I've always wanted to be mom.

0:09.4

And we're bringing you on our journey through everything.

0:12.4

I have no idea what we're doing.

0:13.6

Thank you. I have more of an idea.

0:15.6

I think of it like a Tamagocchi.

0:17.8

At the end of all of this...

0:20.0

We're going to have a little baby. Raising Chelsea, a Hulu

0:23.7

original series streaming exclusively on Disney Plus. 18 plus subscription required T's and T supply.

0:31.0

This is Optimal Finance Daily. Is Value Investing Debt by Vitaly Kassanelson of Contrarianedge.com.

0:40.0

Question.

0:41.5

According to many market commentators, value investing doesn't work the way it used to,

0:47.3

and some tout statistics that growth has outperformed value over the last decade.

0:52.7

How do you rebut that view? Answer. There are two answers to that

0:58.2

question. My first answer is within the bounds of your growth and value constructs, wherein you take a

1:04.8

valuation metric, let's say price to earnings, and divide the market into two halves, the top expensive half to find as

1:13.0

growth stocks, and the bottom cheap half, the value stocks. That's a very arbitrary and crude way to look at it,

1:20.8

but this is what research services do to make this growth versus value comparison.

1:26.6

Growth companies by definition have higher valuations,

1:30.2

as the bulk of their earnings are expected, a very important word, to happen in the future.

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