The Death of Value Investing? | Phil Town

Question for you guys: Do you think it's still possible to be a value investor in 2019? Or is value investing dead, and what instead should we be doing? Leave your answer here.

Ruler family all the way!

I wonder if Jim Cramer thinks that it’s dead ?

Markets arent overpriced as most think. There are some steals out there. Caterpillar and 3M are great buys. Yum China probably the greatest buy right now. 30 year hold.

I fear that Berkshire Hathaway is making its money now with preferred shares, warrants and high coupons-not value investing. Its latest deal proposal with Occidental will do nothing for the company's value and share price, except sink it into further debt. Look at the Kraft-Heinze deal, or the GE deal from 2008. Buffet/Munger have shifted their strategy even further?

sure I'm a value investor, just not an intelligent one.

Anybody else notice that when he holds his hands together in a certain way the right hand looks black?

I'm trying to find ways to save time researching about company news – I found beeken.io and joined their beta, does anyone have any other recommendations?

Amazing. Thanks

things are different… how many fools have said that to their demise?

The idea of buying an asset that is worth $10 for $5, will never not work. However, it may become harder to find these opportunities.

Absolutely great video

Thanks for the lesson!

Hi Phil, In my country (India) a lot of good companies are under priced right now, because their promoters, pledged the shares to invest in other businesses. These companies have a good free cash flow and their continue to earn revenue. What's your recommendation under such circumstances, should one invest in these companies ?

Phil, who's to say we can't be both a "Ruler" and a "Graham Enterprising" investor? Graham even offers a formula similar to the the one you use to calculate both "sticker" and "MOS." (I realize that's only one piece of it). Looking at empirical data, the "Enterprising" investor still trounces the market when the stocks are available, and they do come available if you're patient. That doesn't mean you have to be a Robber Barron and chop up companies; sometimes they work out. My ideal company would meet both 1) the criteria you present and 2) Graham's Enterprising criteria. After all, Mohnesh hammers away the point that the best investors have to be extremely patient, extremely decisive, and extremely unreasonable. Cheers, JNW

Hello Phil, I am struggling with a decision. I thought I would ask you your advice. I have a 457b that I am planning to roll into TD Ameritrade so I can do my own investing once the market is favorable ( I am enrolled in your March 3 day workshop!). My question is- Do you think I would be wise to just have them make me a check for the full amount so I can set aside maybe 5K for regular non deferred investing and the rest put into an IRA? My thinking is I can have a fund growing to retire early without the age restriction. Once I commit to the IRA I would not be able to touch the money early without a 10% penalty or a hardship. Right now the 457 is 23K. That would leave me 18K to grow in the tax deferred and 5 k to grow in the regular stock market and MAYBE I could one day leave my job…one day and live off the $ from the regular non-deferred investment until I reach retirement age. I would love to retire in 10 years.

Phil, Thank you for your great information. I can't say I'm a "Value" investor, as it's generally known, but am more of a Rule #1 investor. My investing model is similar to R#1 because I seek great growth stocks that appear to be down and buy them at 50¢ on the $1. But, unlke R#1's 10 year view, I have a 5 year horizon for doubling my investment money. (10 years is too far down the road for my vision.) I've adopted your "circle of competency" and great management. So, I'm mostly there.

Hello Phil, thank you for the video.
I have one questions as I wasn't able to find this information in any of your materials. What is the "PE" that is a part of calculation of the sticker price and how do I calculate it? Thanks.

I like index passive investing.

Please read another graham's book,the intelligent investor, carefully, you will see that graham isn't like how do you think. Low price is not come from recession alone, it come from bad news about company, company that don't fullfil its projected goal and all stupid things that a market can do to a stock that otherwise yielding a good net profit and still growing but just below the market expectation

I just wait for the price to drop 15% and then start nibbling. More falls means more averaging. Pretty dumb and simple but it works.

Currently sitting front row in one of his 3 day workshops this weekend. It’s been a phenomenal experience that goes beyond anything you’ll get from a podcast or YouTube series. Phil and his coaches have done a wonderful job of breaking down a lot of really advanced concepts. Tomorrow is the last day! Very grateful for the workshop. It’s totally free by the way!

I am totally agree with you. finding myself buying wonderful business is much better than buying Junks..

Phil is right but for the wrong reason. Value Investing is the gold standard and what successful people do.
The reason it's dead to you… large companies hire the smartest people to do this. They buy it before you and equalize the value.
You're smarter than JPMorgan? Great, you're gonna be rich. As smart and as handsome as you are, sorry, you're not smarter than JPM.

Hi Phil, How do you handle recession? do you sell your stocks ahead of recession and buy them back in the middle of the recession.. how do you protect your money in the tough market situation?

EOS

I've been buying up Dr pepper stock!!!!!

We are Living in different times.

I'm a ruler

What did I even watch? This video is 10 minutes long but it says nothing. There's a lot of talk about intrinsic value, buy low, sell high, but it is not explained. Intrinsic value of a company with zero growth is adjusted earnings * 1/Cost of capital. Buy Bruce Greenwald's book, "Value Investing: From Graham to Buffett and beyond," If you actually want to learn techniques for how to value businesses.

Hi. I was researching a company and I came by that the CEO and board of directors took 42% in salaries of the turnover. How many percent of the turnover should CEOs and board of directors have in salaries to be an O.K. company to invest in?

I believe Buffett follows many of the value principles still. Extreme patience is required and most can not sit on cash for years waiting for extremely good discounts.

Outstanding video. Really enjoyed it…

Hi Phil, or anyone on youotube 🙂 – Could you provide some possible reasons why operating cash flow growth might reduce over time (and eventually show negative growth), when sales growth, book value per share, and EPS are all steadily increasing…? I cant understand why cash in the bank before expenses would be getting smaller when equity and sales are growing!? Seems odd. Cheers!

Can you dive into more math related stuff you have laid the foundation already so why wait?