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HistoricalPEGuy (62.95)

Value Investing is Lame

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November 22, 2007 – Comments (2)

That's the thought process from many investors.  "Nobody has hit the jackpot with value investing".  "If your old, then value investing might be for you".  "Get with the times, gramps".  I've seen so many posts recently about how people are getting absolutely slaughtered by the recent market.  High flyers get pounded and its tough to stay unemotional when its doom and gloom.

Value investing is so much easier when it comes to keeping your cool.  If you're heavily invested in high flyers, its almost impossible to stay rational.  Value investing is boring.  Almost entirely unemotional - and did I say boring?  Yup, really boring.  No 10 baggers here.  However, knowing that you are your own worst enemy, it can really help you stay focused.  Understanding the market is one thing, understanding yourself is another.  Know you limitations and invest within them.  It won't make you jump out of your chair, but it'll let you sleep at night.

You won't find me anywhere near the top, but I've been a pretty consistent all-star.  Does that make me great?  No.  But value investing is a real style that can work -  it just isn't flashy and doesn't make you look like a god.  But, when it comes to real money, what are you actually trying to do?  Look like a god?  That's ego and emotions.  How about simply beating the market over time?   That sounds good to me.

-- HPEGuy

2 Comments – Post Your Own

#1) On November 22, 2007 at 8:52 AM, rd80 (98.66) wrote:

And most value stocks pay those boring dividends, quarter after quarter. Boring, boring, boring.  Dividend hikes year after year. Boring, boring, boring.

Boring is good. 

Great post. 

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#2) On January 01, 2008 at 3:24 PM, dwot (97.03) wrote:

Just re-assess for malinvestment.  I question how well value investing will do as things are repriced for the gross levels of malinvestment.

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