For those saying value investing is dead, i think they simply don’t understand it, thinking it’s just blindly looking at P/e ratios. it posits two things: 1.

For those saying value investing is dead, i think they simply don’t understand it, thinking it’s just blindly looking at P/e ratios. it posits two things: 1. Companies have an “intrinsic value” that can be determined based on their earnings, balance sheet, dividends, and analysis. 2. Buy companies that are below this intrinsic value. The problem with departing from the underlying value of an asset is you’re essentially doing the GME game (greater fool). You’re just relying on someone paying more than you did for something, which can go down as fast as it went up since there’s nothing tangible backing it up. Eventually there are no more greater fools or you’re just gambling that something will happen in the future to justify the current value, which is exactly a gamble