Value investing is about buying undervalued companies in metrics such as P/E and P/FCF ratio. And investors gain money by valuation expansion and companies growing their income YoY.
On the other hand, DCA into S&P500 preaches about the philosophy of people can never time the market nor pick the right stock, so just dollar-cost-averaging monthly instead. Cannot time the market also means any sort of metrics showing valuations are currently undervalued are useless.
Also, if Warren Buffett preaches about never timing the market, why did he sell stocks (e.g. Apple and BOA recently) or buy stocks that he think is undervalued?
Basically my questions are: - Is Value Investing opposite of DCA into index? - Is Buffett timing the market by buying low, selling high?
Submitted September 22, 2024 at 03:00AM by Key_Type_4102 https://ift.tt/mdSgHtN
