Does value investing still work?
If value investing no longer works, we should not practice it anymore. If we say value investing still works, let's understand why.
In value investing, there are primarily two considerations: business and price.
Usually a great business will be selling at a more expensive price as compared to a poor business.
Value investing still works today because people are still emotional by nature and due to that, mispricing occurs - which led to the market selling great business at a fair price or poor business selling at an overly terrible price. Both scenarios are an opportunity for value investors.
But we have to admit that it is harder to be a value investor today due to 2 reasons:
Despite that, value investing still works today.