With computers and financial data, anyone can just program Benjamin Graham’s formulas into an algorithm and invest based on it. Any time a stock actually becomes a value stock, the dip is quickly bought before you’ve even had time to digest the information. If it isn’t bought, it’s most likely a value trap.
Additionally, for the past decade, if anyone asks for a book recommendation, one of the top answers has been “The Intelligent Investor”. The more people adhere to a technique, the less inefficiencies there are in the market with regards to that metric. By telling others to value invest, retail investors have literally been killing value investing, and Warren Buffett’s returns too.
On Google trends, the Intelligent Investor had a slight bump over pre-2011 times, and that coincides with when Warren Buffett stopped outperforming the S&P500.
Submitted August 23, 2020 at 09:19PM by Awkward-Stranger-758 https://ift.tt/2EdnbVU
