Excess Returns, Episode 6: The Case Against Value Stocks

Confirmation bias is one of the biggest problems in investing. We all have a set of core beliefs, and we tend to surround ourselves with people who also believe them and focus on information that validates them. That can be dangerous, though, because it can blind you to valid arguments that contradict your own. In this episode, we challenge our belief in value investing and discuss some of the reasons why we could be wrong.

We discuss the following arguments against value:

[1] The World is Different

[2] Too Many People Are Doing It

[3] The Capital Following it is Becoming More Permanent

[4] Big Data and Rising Computing Power Are Leading to More Value Traps

[5] Value is a Bet Against Technology

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Jack’s article:

Charlie Munger Quote / Farnam Street Blog

Stocks and Inflation, OSAM

Ben Hunt’s Three Body Part Problem

Value Is Dead, Long Live Value, OSAM