r/valueinvesting
Why are we still focused on Value when it's been a losing trade for almost two decades
The author questions the relevance of value investing, arguing that tech and AI growth have consistently outperformed it since 2008.
- Value investing can still be a viable strategy under certain specific market conditions.
- Value stocks managed to outperform growth stocks in the year 2022.
- Value has been a losing trade for nearly two decades, consistently underperforming growth.
- The AI trade and tech sector have completely overshadowed value investing.
- Clinging solely to value investing is like burying one's head in the sand.
Value has struggled for quite some time now. I'm curious as to why people still cling to it? The AI trade, for example, has left value in the dust. And this is really just a continuation of a trend that has been going since the recovery of the 08' crisis where tech and growth have consistently outperformed value in every way (I think value had a better year in 2022, but that's about it). At what point do you reconsider your commitment to the value thesis?
I think it can be a viable strategy when certain conditions are met, but solely hanging your hat on it strikes me as just burying your head in the sand at this point.
I'm sorry if I offended anyone. I'm just genuinely curious about what drives people to value these days.