Why Value Investing Will Never Die

The Compound and Friends

Josh Brown

Investing, Business News, News, Business

4.7 • 2.2K Ratings

🗓️ 14 May 2020

⏱️ 18 minutes

🔗️ Recording | iTunes | RSS

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Summary

Josh Brown and Michael Batnick discuss the recent rash of commentary about the "Death of Value Investing," a discipline that has already died a thousand deaths before and yet is continually resurrected. Michael points out that growth investing is currently on a 30-year win streak versus value investing, while the distance between cheap stocks and expensive stocks has never been more stretched. Josh's take is that the idea of buying an asset for less than it's worth is immortal, but the inputs we base these decisions on might need to change. Perhaps it's not a problem with the concept, but with the measurements. You can find more of Michael's thoughts and charts on the topic at his post below: https://theirrelevantinvestor.com/2020/05/12/the-case-against-value-investing/ You can find Josh's written rant on value investing here: https://thereformedbroker.com/2020/05/12/value-investing-is-immortal/ Hosted on Acast. See acast.com/privacy for more information. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hi guys it's downtown Josh Brown I'm here with Michael Batnick we are here to talk
0:06.8	about the financial industry topic to juror the death of value part 970. Value investing has underperformed growth
0:17.0	investing over the last one three five ten and thirty year periods which
0:22.1	means a comeback is going to start any minute now, or maybe not.
0:26.0	Let's talk about it.
0:28.0	Welcome to the Compound Show Podcast.
0:31.8	Each week, we let you in on some of the best conversations
0:34.7	we're having about markets investing and life. Just a quick reminder, the
0:40.0	hosts of the show are employees of Riddholz Wealth Management.
0:43.2	All opinions expressed are solely their own opinions and do not reflect the opinion of Riddholz
0:48.9	wealth.
0:49.9	This podcast is for informational purposes only and should not be relied upon for investment decisions.
0:55.6	Clients of where it holds wealth management may maintain positions in the securities
0:59.8	discussed in this podcast.
1:01.8	Okay, here we go.
1:05.0	Okay, Mike, everyone's talking about the death of value investing and I mentioned this morning I feel like we do this once a year for a few weeks and then the season ends and then we do it the next year.
1:16.3	What's different now? Well we won't we won't do it if it starts working again we won't have this
1:20.9	conversation. Obviously not going to start working ever, but like why does this topic continue to be guile
1:27.2	the chattering classes?
1:30.7	I think right now it's very simple we were told by various people that in the next
1:36.7	recession and the next bear market value would hold up better at least coming
1:41.0	out of the recession obviously we're still in it so maybe that's not a fair thing to say.
	...

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