Is Value Investing Dead? A Quant and a Financial Planner Discuss
Two Quants and a Financial PlannerOctober 23, 202300:51:58

Is Value Investing Dead? A Quant and a Financial Planner Discuss

With value investing now having struggled for over a decade, many are questioning whether the strategy has become permanently broken. In this episode we examine the arguments against value investing both from the perspective of a quant investor who builds value strategies and a financial planner who uses them. We look at the different types of value strategies and why value isn't just buying the cheapest stocks. We then get into the arguments against value and discuss whether value's popularity has destroyed its outperformance, if the Fed and market cycles have broken value and if technology's dominance can explain the struggles of the past decade.

#valueinvesting

00:00 - Intro
02:18 - Michael Mauboussin and the broad definition of value
04:39 - Graham, Buffett and Bill Miller value
06:01 - Value and the melting ice cube
10:13 - Putting the struggles of value in context
13:29 - Is multiple expansion still a thing?
15:28 - The widening of value spreads
17:15 - The voting machine and the weighing machine
22:29 - Value needs some good storytellers
24:33 - Why value investing works
30:25 - Did the Fed kill value investing?
33:54 - Value and quality
34:40 - Are there too many value investors?
36:41 - Has big data killed value?
37:50 - Is value a bet against technology?
42:26 - Has a less volatile economic cycle hurt value?
43:28 - Is value investing dead?
47:23 - How a financial planner views the value debate

ABOUT THE PODCAST
Learning how to be a financial planner is one thing. Doing it is another. Follow along with new financial planners Jack Forehand (@practicalquant) and Justin Carbonneau (@jjcarbonneau) as experienced veteran Matt Zeigler (@cultishcreative) helps them navigate the complex world of financial planning and learn about the most important topics that impact all of our financial futures. From investments to retirement to college planning to estate planning to insurance and beyond, we will cover the major financial planning issues that impact all of our lives and will provide a framework to help investors tackle them. We hope you will join us on our learning journey.

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