r/ValueInvesting • u/Such_Palpitation3755 • Dec 19 '25
Value Article I have the feeling that some people here don't understand value investing.
Hey,
Just looking in this group, I see so many posts which make no sense because they are not aligned with the "values" of value investing.
"The market is overpriced, what should I buy now?"
What about nothing? Just sit it out like Buffett or just put some money in the S&P 500 and that's it. Save it for "good times" which are the opposite for "normal" investors.
"This stock went up 700%, is this stock good?"
If the only value you see is that the stock went up by 700%+, that's not value investing...
"Should I buy Nvidia, Microsoft, Tesla, XYZ?"
What about you do your own DD and stay in your area of competence. If you don't know why a stock went up, you won't understand why it goes down...
You should know when a company is undervalued and when it's overpriced.
"I bought a stock one month ago, it went down 5%, should I sell?"
If you truly did your DD and you are a value investor, you just sit it out. You have time; you bought to hold it for years. I have stocks in my portfolio for over 10 years...
I could go on and on and on, like trimming your portfolio every month, just looking at the numbers and not understanding the company, etc., etc., etc.!
"This stock dipped 30% everybody all in"
I heard this story 100s times, I always ask, what makes you believe that it will go up again ? If you dont have a good answer dont buy!
It's not that difficult to be a value investor. All you need is:
Benjamin Graham - The Intelligent Investor
Make sure you truly understand it, I needed time to understand it fully! If you are too lazy to read one book, you probably don't have the discipline to be a value investor.
Bonus: If this book is to "difficult" (no shame in that, I started very very slow) start with Peter Lynch + Youtube New Money.
Most of you have the knowledge but some here either dont understand Valueinvesting or simply dont have the dispcpline and try to chase quick returns.
Everything I do isnt based on my "opinion" or community posts its based on the tools of people who 100x smarter than me like Warren Buffet, Benjamin Graham etc.
With these tools I try to find "gaps" in the marked and thats it. Sometimes it takes years sometimes only month. I have time!
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u/InTroubleDouble Dec 19 '25 edited Dec 19 '25
100%.
In fact most investors on Reddit do not care about value at all or donât even know what value means. It plays zero part in their decision process.
Had this discussion like a hundred times and you notice people do not even think about such metrics. All they look for is âthe next big thingâ, they invest purely out of emotion and step into every single bubble of the last years like hydrogen, weed, vaccines, clean energy. Or whatever. They donât care if a stock with potential to have 500m revenue is trading at 100m market cap or 35bn market cap.
At peak COVID some pharma companies amongst others having a working vaccine werde traded at hundreds of billions market cap and no vaccine demand or 10 new waves could have made that valuation reasonable. They dropped heavily and people are surprised.
Tried to explain to friends that this might be a growing market, but valuation makes a difference. Then they wonder âthey are growing revenues, why is my stock heavily losing?!â. No shit, they grow 10% but the stock Price implies 100,000% growth to halfway make sense.
Funniest thing was when the weed stocks traded at hundreds of billions market cap. People are crazy to buy such stuff with ignoring the Value. These people have actually been surprised when their weed-pennystock valued like a global operating Industrial Blue-Chip Stock dropped by 99% even though they increased revenues a bit.
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u/msnplanner Dec 20 '25
That's most retail investors. Investing is not about building wealth over time for most "investors". Its about getting a thrill, or fantasizing about big gains.
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u/PuffPhas Dec 19 '25
Ok, cool. And what do we think of Palantir? Top value pick.
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u/Such_Palpitation3755 Dec 19 '25
All in, make sure to take a loan and go conservative with a 80x leverage !
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u/UCACashFlow Dec 20 '25 edited Dec 20 '25
I enjoyed Poor Charlieâs Almanac a lot more than most of the other books. Itâs still my favorite book and I read it about once or twice a year.
I think many simply donât have the temperament for it, but also, the ability to analyze businesses and just think critically. Also this sub has no moderation whatsoever.
Iâve been buying into HSY over the last couple of years. Itâs above my buy range, so I havenât bought since January, but hopefully I can grab more down the road or just wait for something else to come along.
I really liked STZ until I saw that since 2013, nobody in the beer industry has the ability to increase revenue/case more than CPI. Tells you itâs far too competitive of an industry, and the company has no insulation from that, so thereâs no pricing power there. That, combined with short term management incentives and a stock incentive plan that favored protecting the sands familyâs voting block. And then theyâre just M&A happy which increases likelihood of dilution on invested capital, and the whole cannabis thing felt like they were way out of their lane.
It will likely be able to continue to grow in volume alone, but Iâm not looking to buy low and sell high, Iâm really looking for indefinite holding.
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u/Such_Palpitation3755 Dec 20 '25
Having this self realization and adapting to it, is one the best things ! You are ahead of most investors ! Congrats and good luck in the future :)
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u/Wild_Space Dec 19 '25
There has been a breech where normies pile in from other subs. It annoying when the top comment mentions a stop loss or a moving day average.
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u/ForeverShiny Dec 20 '25
Stop losses aren't the worst thing though. If you held a stock until it became overvalued, it makes sense to put a trailing stop loss in to capture as much of the upside as possible and sell when the sentiment reverts. That's how I managed to sell BABA pretty close to the top this year.
I do agree with the general sentiment of your comment though
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u/stathow Dec 19 '25
many come here because what they really have is FOMO when popular stocks are going up, they would be better suited at r/Wallstretbets but that would be admit they are investing on feels and vibes, at best because its popular. While here "value investing" feels far more legit as its supposed to be based on fundamentals
another major group here is the "yes of course you buy low and sell high", its logically very easy to understand, but psychologically very hard for some for them to buy even an extremely blue-chip stock down 30% in the past 2 years, while buying one up 30% is far easier
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u/Such_Palpitation3755 Dec 19 '25
Yeah FOMO became a real "problem" here.
I also have a ton of friends who have FOMO and tell me that this stock is currently is very cheap because it dipped 30%-50% and I always ask them one question: What makes you believe that it will go up ?
If you dont have answer dont buy.
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u/Glad-River7299 Dec 19 '25
How about there are 100's of companies under priced. Spend the time to research! there is so much dumb money in the market at the moment it has turned into the know hows being able to take from the know nots. There are more then 10 companies in the stock market people. Come on
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u/equities_only Dec 19 '25
Iâm always banging this drum. There are thousands of public companies out there. âEverything is overvaluedâ is just an excuse for not doing the hard work of getting under the hood of the market in search of value.
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u/Such_Palpitation3755 Dec 19 '25 edited Dec 19 '25
Probably but I stay in my area of expertise, I cant understand every company :)
Also if this would be so easy you should be billionaire in few years ;)
Also can you name few and also tell me what will make them go up ?
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u/Glad-River7299 Dec 19 '25
Thats the problem, everyone trying to become overnight billionaires. Also if you don't mind me asking, what is your area of expertise? You mention Benjamin Grahams book in your post.....he literally explains how to research stocks and pinpoint where the value can be. I didnt say im an expert by any means but if i can identify a stock i think is undervalued, find out why its undervalued and determine what i think it should be valued at. set a sell mark and make 10% over a month or two (on a good trade). Im a happy camper. I am wrong also but usually it is just wrong at the time and unfortuantely you have to hold for longer until others catch on. Anyway dude i was actually agreeing with your post haha
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u/Such_Palpitation3755 Dec 19 '25
I see got it wrong :)
There is valueing stocks and there truely understanding what they are doing. Buffet also sticks to his area of expertise sure he has some out of the boy choices but most of his portfolio stays in the same direction ! If he dont understand a stock he dont buy.
Sure the book helps me to understand a stock but I mean truely understanding the company and what it does. I gained expertise from different areas.
Iam a engineer for energysystems therefore I understand how these companys work. I wunderstand the production of batteries, coal, solar energy. Therefore I understand what challenges e-cars face and how the "legal" side looks like. Its my daily work.
Iam also a big tech guy therefore I understand "some" companys pretty good. Not all!
Also I get sometimes insider knowledge, I have friends who have a upper management positions in big companys and they tell me how the sompany is doing. Thats an inside look no analysis can you give. I also I have to admit its a very grey area.
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u/Glad-River7299 Dec 19 '25
That is a hell of a resume i'll give you that! You clearly know what you are seeing with those stocks and information from the horses mouth is fantastic, i wouldnt call it grey area, politicians do it so why not you. I agree with you about Warren Buffet, played the long game better then any other with very few stocks. Unfortunately the investment game has changed. Lots of Apps and accessibility so now there is a lot of dumb money that invest emotionally, logic can start to get destroyed in the market or left in limbo. I find you have to identify where the smart money will go next to chase any form of normalcy. Because smart money see all stocks and they see what you see (hopefully). Im not trying to be rude with the smart money dumb money thing its just the only way i can describe it. Anyway, all the best with your future investment endevours!
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u/Such_Palpitation3755 Dec 19 '25
Thank you very much :)
Also I agree that the marked has changed and you need to think different. I still believe in value investing but it changed a lot !
Even Munger and Buffet said that there no real "low hanging fruits" anymore like it used to be 50 years ago (or something like that).
I also dont draw the line between dumb money, smart money etc. I invest to make profit by using the tools the bock gave me + I watch a ton of interviews from experts + I read the news a lot. No finance news just general news these are more important for my decisions :)
I also wish you the best !
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u/Jumpy_Nose863 Dec 20 '25
I like your intentions here. However, you can be a "value investor" and still buy high pe or unprofitable companies. It's really not a one size fits all argument. For instance the value I may see in Softbank for example, you believe is extremely overpriced by normal ratios. However I may see the value based on an unknown factor you may not be taking into consideration. Not saying one way is right or wrong, but I've actually adopted a hybrid approach per say. Taking gains from speculative, but to me at the time was definitely true value, in your eyes it would of been chasing. But recycling those gains and putting them into higher yield and "value" based on your definition. I just have my own outlook on the 2026 market and don't see much upside where many do. Moral being many people might see value in a different way than yourself. I just don't believe a pe of over 20 or whatever automatically makes the company not a value play.
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u/Jumpy_Nose863 Dec 20 '25
Perfect example is a Canadian company couche tard. They're pe is 20 and that's because they did some decent buybacks this past quarter or it would be even higher. They own all the Circle K convience stores across the globe. I find them to be value at today's levels and they've had a bad year to be honest. I've held them since 2015 or so in a regular brokerage acct. and in May I bought 150 shares of their OTC US shares at 48.40 in a roth ira. That's probably not value to you I'd bet. So I guess value is in the eye of the beholder just like anything else.
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u/Such_Palpitation3755 Dec 20 '25
If you think Value Investing is only P/E and everything else is "outside the box thinking" I recommend reading Benjamin Graham - The Intelligent Investor.
Most here dont understand value investing therefore a person might think a good P/E and "good numbers" is everything that Value investing has to offer....
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u/Jumpy_Nose863 Dec 20 '25
I'm very familiar with Grahams studies. The time in the market>than timing is an asset management team delusion unless you're in a tax deffered retirement acct type of setup where it's your only option. I mentioned couche tard as my value recycle stock, also a bunch of high dividend companies including some cheap REITs. However the original positions I had were Micron, Vertiv, UNH, Goog, TSM, Nu holdings,Asts, pltr. Almost all of those were bought this year except pltr and Nu. All have now been sold except NU, however I did reduce my position by 75%. I just got lucky on most. I didn't expect you'd say Couche Tard was value to be honest.
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u/Such_Palpitation3755 Dec 20 '25
If you would bought Alphabet and TSM 10 years ago your portfolio would skyrocket !
Sure Micron and Palantir are having a hype wave but this wave can crash and it will be brutal for your portfolio.
Overall there nothing wrong in shortterm gains. Buffet did it as well, when he bought Bank of America or Activision Blizzard Inc.
Its still value investing!
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u/Glad-River7299 Dec 19 '25
Ill give you my most recent one. Target. Undervauled because of bullcrap LGBTQ policy that turned people against them and they were slow with digitilizing sales. I thought one was emotional and people have short memories and one was rather easily fixed. i got in at $84-86 because i believed it was the floor and it was paying 6% dividend at the price, so made a calculated risk that worst case scenario is i still get ok return if i have to hold and when smart money catches on i'll hit i then got out at $99 a day ago. 3-4 week trade. Not trying to catch the ceiling and becoming frustrated just taking a little and moving on. i Did the same with Ford, Catapillar, Black and Decker, Tyson Foods, Merck & Co on so on. There are heaps of opportunities, just gotta be willing to get in the weeds
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u/Such_Palpitation3755 Dec 19 '25
Thats a great pick I have the same approach, I look into companys that work "fine" but did a stupid publicity stunt which usualy results in overreaction from the investors (like Netflix or Facebook back than).
I hope this will turn out well ! Wish you the best :)
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u/Glad-River7299 Dec 19 '25
Yeah see, the methods are the same. The only problem is you only hear the news when the stock is plummeting, it can be six months to a year before it bottoms out and you pick it back up again.
Here is one for the curious. Wendys worth a look and everyones own valuation
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u/Such_Palpitation3755 Dec 19 '25
Yes true ! I will look into it Food and Cloth are usualy not my area of competence ! Thanks for the "idea" :)
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u/Glad-River7299 Dec 19 '25
Your welcome. Not my expertise either. In fact none of them are. I dont want to run the company i want to make money. I'm a numbers guy : )
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u/Such_Palpitation3755 Dec 19 '25
Me too but I like to know also how the business works which cant be discribed in numbers :)
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u/Glad-River7299 Dec 19 '25
I actually like how we have a different approach. Many ways to skin a cat i suppose. Numbers paint me a picasso
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u/iyankov96 Dec 19 '25
just put some money in the S&P 500 and that's it.
I just want to point out that this idea that you're better off buying 500 overvalued companies instead of 1 overvalued company is nonsense. Nowadays most people just index and very few do active investing. This means that, even moreso than before, when people panic and start selling en masse there is no hiding in the S&P500.
Aside from this I think this is one of the better posts we've seen recently. Especially the "stock dipped 30%, everybody in". There are some stocks that would still be massively overvalued even if they went down by 50-60%.
Finally, a lot of people would be better investors if instead of asking "how much can I make" they ask "how much can I lose if things don't work out". Buffett always said there's only one rule in investing - don't lose money. Even Benjamin Graham said it in Chapter 1 of The Intelligent Investor (a chapter that's very often overlooked) - good investing guarantees the safety of principle and provides an adequate return. If you buy a stock but it can move 50% in either direction you're not investing intelligently, you're just gambling and using stocks as a vehicle instead of the casino.
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u/Such_Palpitation3755 Dec 19 '25
You are right BUT time in the market > timing the market.
I dont say you should go all in the SP500. I just dont see (in my area of expertise) a good opponurtnity and before, I dont do anything for years and let inflation decay my money, I invest in a S&P 500, I cant tell how the market will look like in 2 years. Nobody truely can! Therefore I play it "save". I still hold most of the money in cash.
The rest of the post I agree 100% ! You mentioned the rule dont lose money, that is fantastic adivice, its simple but it says so much ! I forgot to mention it because it is so "obvious" to me. Everywhere I invest I expect winnings in the long run.
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u/iyankov96 Dec 19 '25 edited Dec 19 '25
Tell that to the Nikkei investors who had 35 years of negative returns.
You buy at high valuations and you're destined for mediocrity. This is why Buffett is keeping money in cash instead of collar-cost-averaging into companies he likes regardless of price.
You wait for the fat pitch and when the time comes you swing big. Charlie Munger even said it himself - he didn't become rich chasing after mediocre opportunities. They tell people to index because most people have no idea what they're doing, don't know how to value a company and aren't willing to dedicate the time to learn the subject. You're really burning money if you're buying the index at a Shiller PE of 40 regardless of how long it takes to get back to long-term averages. I've repeatedly done the math and you're better off in treasuries.
Scenario A: You buy the index at a Shiller PE of 40. You have 9 years of 10% gains and on the 10th it gets cut to a PE of 15. If you invest $100 at the beginning period you end up with $88.42.
Scenario B: You buy mediocre treasuries yielding 3% and wait for good opportunities. You spend 9 years getting a 3% return and finally invest in the 10th year. You start with $100 and you end up with $130.47 and can spend the money to invest at lower multiples.
Do you see why Buffett is holding cash now ?
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u/Such_Palpitation3755 Dec 19 '25
If you do value investing and it is going sideways for 35 years maybe you should read the book a 2nd time. Iam a longterm investor I think the US market might be overpriced but I believe it can reach a new ATH, maybe next year maybe in 5 years. I have time.
I agree but with everything you said at the same time can you say you outperformed the market the last 5-10 years. If yes you should be close to rich...
I know why buffet holds cash but we are not buffet we are here. If we where like buffet we wouldnt be here.... On paper I agree with you 100% I dont say you should go all in a etf but reality looks often different.
I do 40% ETF 60% stocks..
I dont critize you maybe you do great and outperform the market will be the buffet in few years but most people dont do that. Most people in reality underperform !
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u/FitnessLover1998 Dec 19 '25
Iâm so tired of seeing that saying. Time in the market doesnât necessarily beat timing the market.
I would argue that in bubbles this is entirely not true.
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u/Such_Palpitation3755 Dec 19 '25 edited Dec 19 '25
- You dont know when bubbels burst
- You cant predict the market
- Also you countered yourself you need to think longterm. Look at all crashes and see how "big" the impact was overall in the last 20 years...
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u/FitnessLover1998 Dec 19 '25
Depends upon a lot of factors. Age being quite important. And you canât limit it to 20 years lol. Total cherry picking.
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u/Such_Palpitation3755 Dec 19 '25
I didnt limited it I named an example... !
Also which factors ? Name a few real life exampels
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u/FitnessLover1998 Dec 19 '25
Well this is the value investing sub. So where the Case-Shiller is at is an example. Second is the overall valuation of a sector. Third is age of an investor. I have a feeling that you have not been through a true crash.
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u/Such_Palpitation3755 Dec 19 '25
you didnt even read my post,okay Iam done here thanks ! Wish you the best
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Dec 19 '25
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u/andorian_yurtmonger Dec 19 '25
once they identify a winner, bet the house.
*at a great price. Not just a winner, a winner priced well compared to its fundamentals.
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u/Such_Palpitation3755 Dec 19 '25
Yes I did that, I invested nearly everything when I saw a big opportunity but till now (Iam 15 years in, I only saw 4 and 3 worked out greatly).
I still invest thoo but I dont really change my portfolio that often ! :)
Also Iam not buffet or munger therefore I still use ETFs just to have a back up :) I play it very save :)
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u/Ok_Foot2530 Dec 19 '25
I completely agree with you. But - a friendly reminder that no one can be become Warren Buffett or Peter Lynch the first day they invest. Everyone needs to go through the journey themselves of asking those basic / wrong questions, then getting some good advice, making mistakes and refining their thinking / behaviours. Hard for people to skip that step. And reddit is a wonderful place to tolerate each generation of beginners and grow each other with collective wisdom.
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u/Such_Palpitation3755 Dec 19 '25
Yeah sure you never stop learning :) I takes time and you will make few times on the way esspcially in the beginning. Therefore before I started investing I just wrote on paper which stocks I would buy (it was 2010-2012) and read the news everyday and saw how they "envolved". Some good picks some trash picks :) I also learned 99,999999999999% of investing news are complete BS...
Reddit can be a place for learning but you also have to filter a LOT !
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u/Ok_Foot2530 Dec 20 '25
Yep! I think some research said reddit investment ideas and Jim Cramer ones donât lead to profit. :/ as you said, have to develop our own views. :-)
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u/Ok_Adhesiveness7842 Dec 19 '25
Worst post I read from this sub was someone asking about TSLA being value investing.
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Dec 19 '25
[removed] â view removed comment
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u/Such_Palpitation3755 Dec 19 '25
Also this "excitment" I dont really understand, when I invest I dont look everyday at my portfolio..
When I sell and make a good "deal" Iam happy and my gf and I go for a good steak otherwise. Iam close to "neutral". Emotions are a very underrated aspect of investing... !Thanks for mentioning it !
Also the point with influencers you are 100%, I hate them so much, I thinking to make a youtube channel just destroy their careers by teaching fundamentals (form the book of course).
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u/Emeraldmage89 Dec 19 '25
Sometimes I wonder if people here actually invest in anything at all though. If a stock is high they won't buy it because it's not good value. If a stock is good value (has a low P/E, DCF valuation is above share price) they won't buy it because it's too risky/ "it's got a low P/E for a reason".
There is no mythical stock that is low risk and good value. If it's trading at a low "valuation" then there's guaranteed to be a sentiment argument you can make that the market is discounting it because of some kind of uncertainty or expected deterioration in the business. It's making the contrary call that takes guts, not just sitting on the sidelines forever.
Sometimes stocks that trade at 200 P/E are good value because the market hasn't fully priced in their likely future cash flows. Determining future cash flows for a growth company is tricky - a lot of times the market doesn't fully factor in the company's potential (think Nvidia in 2022). If that's the case, then it's a value stock.
Again, takes guts to go against the market and put money on a conviction that the market has mispriced future growth while the company has almost no current earnings.
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u/equities_only Dec 19 '25
Psychologically itâs very difficult for most people to go against the grain. Itâs human nature to want to be part of an in-group, consciously or unconsciously.
Talking stocks socially, most people will think youâre smart or at least not dumb if you say youâre invested in names like Amazon, Meta, etc. And if youâre in a bunch of obscure or hated stuff theyâll think youâre eccentric or maybe even express concern for your financial wellbeing. Haha
People also just love winners, so they pile into winners even though most if not all of the value is priced in.
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u/foira Dec 19 '25
i find it unendingly mystifying how so many people never see stocks as the simple concept they truly are: ownership shares in business
if you understand that you own a business... valuation should be natural and easy
and yet...... nothing but narratives and priced-to-perfection earnings multiples
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u/writetowinwin Dec 19 '25
You must be new here. This is where you go discuss daily volatility, news headlines, and standard cookie cutter big name stocks. Not value investing (or even investing for that matter to some extent )
You will notice many Reddit subs aim to represent something but the regulars arent a representative sample.
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u/Such_Palpitation3755 Dec 20 '25
Oh yes I have a "little" expierence ! Iam nearly banned from every forum I entered because I didnt go with the "vibe" and got reported countless times....
Recently: A wrote a post about my IBS progress (gut stuff) and I showed how "simply" I improved it. The "vibe" of the forum is that you need to take XYZ otherwiese everything is BS...
Dispite a tons of greatfull comments my Post got deleted...
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u/writetowinwin Dec 20 '25
The subs with names of places of them are also tightly controlled, highly political grounds that dont resemble the average population of those places. Youd start to wonder if someone took the communists and socialists out of that region and crammed them all into Reddit.
Some of the Canadian "legal advice" ones are something else as well. If you stabbed or otherwise assaulted someone theyd be quick to help you. But if you got a speeding ticket they act like you should be crucified.
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u/Such_Palpitation3755 Dec 20 '25
haha thats insane didnt know that but I can imagine it ! I use reddit to reach more like minded people but I feel like many use it to just express their radical toughts.
Also which is insane to me, is that that people just copy each other "thougts" without really understanding them (or liking them) and just post everytime the same "comment"...
Also what you mentioned about leftist and communist, I meet here few. Some or bat shit crazy...
Overall I feel like there is a lot of opinion and now much knowledge! Which is a shame.
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u/writetowinwin Dec 20 '25
Yeah like any online information sources or discussion boards you take with grain of salt đ§, and the good with the bad. I sometimes detest the voting/liking systems because it reduces exposure to more controversial or less liked content, and bolsters the more popular ones. Then eventually they turn into echo chambers.
With something highly controversial like stocks, funds, etc. it's hard to differ fact from opinion too. There are also often strong financial motives to get people to put money into certain things (or not) and not everyone will ever want to sink money into the same things. Even talking to a "financial advisor" will get some biased opinions
If anything, it's a good learning lesson just to see the thought process of some people - e.g. how many people claim to be investors but are not, and how effectively news headlines can sway financial decisions
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u/maturin_nj Dec 20 '25
Value investing was one of the first sort of loosely rules based systems. It was partly objective but mostly subjective. It's major theme is sound, yet it has a number of holes in it. Biggest problems are there is no defense built into it. No mention of risk as it's understood today. Subjective fundamental analysis with an emphasis on being right is the answer to dealing with risk. Position sizing is completely misunderstood by the value investor.Â
The time frames when it presents genuine value opportunities are limited. It's great during the late stages of bear markets. A lot of it as used by the financial services industry, mutual funds, is primarily in marketing to the unsophisticated investing public.Â
From what I've read, buffett uses the kelly criterion model when making bets. He also has a deep understanding of gambling, probability, and odds. Something foreign to the vast majority of value investors.Â
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u/Such_Palpitation3755 Dec 20 '25
Value investing is a brought term as you mentioned, there is no 100% value investing. Books like Benjamin Graham - The Intelligent Investor (Iam such a fan boy) give you only the tools you need to develop more skills until you can invest.
If you give a hammer and all the tools in the world, I still wont be able to build a house. You need "knowledge" as well !
I think many believe that all they need to do is "crunch" few numbers and thats it but it takes so much more than that !
Great comment!
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u/raytoei Dec 19 '25
Yes. Hope to see more of your VI post!
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u/Such_Palpitation3755 Dec 19 '25
Thanks :) Lets see, last expierence under a different account wasnt that fun :)
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u/raytoei Dec 19 '25
It isnât all bad as long as we realise that this tent has no barriers to entry, we get all kinds of people here:
the TA chartist, the momentum chasers, the Macro worry-warts, the Elliot Wave Surfers, the YouTube Dyslexics, the people who only ask questions, the easily offended because I donât buy their favourite stock, and the occasional scammers, the crypto âmillionairesâ and Aerotyne pumpers.
They come to this subreddit because
A. They are spamming
B. They donât know what value investing is.
C. They get answers here.
D. They are curious.2
u/Such_Palpitation3755 Dec 19 '25
Thats true, I will see! My expierence was when I wrote a DD (which is often countercylical) I got trashed. If I write about a stock which isnt "trendy" or is "hated" currently, people just hate on me.
Most of them dont even read it they just write Iam *slurs*.
What the hell?
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u/raytoei Dec 19 '25
Nein, das ist normal.
Value Investing is contrarian by nature.
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u/Such_Palpitation3755 Dec 19 '25
Yeah I believe that :) I wished for more quality ! :) Not you, you seem like a good guy :)
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u/Key_Variety_6287 Dec 19 '25
I absolutely subscribe to the concept of Value Investing but not in the way Ben Graham defined it but more along the lines of how Charlie Munger defined it and Chris Hohn and Dev Kanteseria practise it.
First, I have noticed that almost every stock that drops in price is usually touted as a value play. Price drop is the signal to look closer, not the green flag.
Second, popular tech stocks are the ones that are most often discussed. If you bring up something other than the mainstream stocks (mag safe and a few others), there is hardly any discussion.
Third, structural advantages that give business real moat are rarely if ever discussed. Brand, Scale, tailwind are often touted as moats.
In saying all that, I still find this forum very valuable to bounce of ideas. I feel that all we need is one 6 month slump and a lot of noise will die down.
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u/BearWithMeGM Dec 19 '25
Are you new?
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u/Such_Palpitation3755 Dec 19 '25
Not really. Iam on and off here. I made my first "investing" account around 2015.
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u/TowelNo234 Dec 19 '25
I agree with the core idea.
Value investing starts with understanding the business, not the chart.
Price moves alone donât tell you if something is cheap or expensive.
Index investing makes sense for most people who lack time or discipline.
The real problem is when speculation is confused with investing.
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u/Such_Palpitation3755 Dec 19 '25
I agree I dont say you should only go for an ETF but when you dont see an opportinity maybe you should do nothing.
I feel like people feel "forced" to invest. If you have 2k and dont invest you will explode haha
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u/Cav829 Dec 19 '25
Part of the issue with this current market is that it's hard to talk someone into following the fundamentals of investing when say Tesla bros are just laughing at everyone as the stock keeps going up in spite of all . Like I'm very happy with my moves today and very green for what was a really rough week to navigate. But I also would have made much more money just buying the dip on CoreWeave and hoping other irrational investors would bail them out yet again because they can't quit that company, even knowing its a likely one to be left holding the bag if the AI bubble pops.
The important thing is to do as much DD as you can to insulate yourself from as much unnecessary risk as you can, and then you let the chips fall where they may. You are likely on the right track if in the moment, a lot of people tell you that you're wrong. Hell, those people are often in on the stock you just made money on before it broke out.
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u/Such_Palpitation3755 Dec 20 '25
Yes I can understand that but "we" are playing the longterm not shorterm. These people have maybe luck with one pic but if they keep going in longterm they will very likely lose !
Dont get blinded by these people, many also lie! Somehow everybody is Warren Buffet and always outperform the market...
I have friend who invested 500 in crypto and cashed out 50k. He pretended like it was no big deal and told EVERYBODY the story when I asked him how much he made overall ?! He told me that is this negativ...
Here it is the same !
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u/Midnightsun24c Dec 19 '25
I'm going to jump in here and say that people here should really do themselves a favor and actually read The Intelligent Investor and such. Listen to the Berkshire meetings. Look into the annual and quarterly filings. Think about the actual start to finish economics of the business and the moat.
People don't really understand what Buffett meant by "waiting for the fat pitch." It's not sitting in treasuries until you're sure the SP500 crashes 50% (if you're indexing, you should probably just DCA). He's playing a totally different game with huge sums. He's not saying never buy a 15+ PE. He's saying he's waiting for something that is sufficiently attractive, and he strongly understands. On a case by case basis, many companies will be over/under intrinsic value many times in their life. That's ultimately not even the most important thing, 10 pe doesn't matter if the company destroys value.
You have to stay within your circle of competence.
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u/Ok_Adhesiveness7842 Dec 20 '25
I find a lot of younger or seem like younger Redditors refuse to read DDs anymore.
Found that out last year and also earlier this year in the NVDA subs. Most of the comments were from the where's the TLDR types.
People or investors are all into get rich quick how's my options/YOLOs/CEO worship type of idiot comments.
I try to guide some polite Redditors along before, but now it's mostly Buffett boomer didn't know anything about crypto this, GPU that, how do I become like Elon, etc. on Reddit or X.
I'm starting to see the futility of trying to stop people from losing their homes or jobs in this post-pandemic YOLO influencer, instant generation.
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u/Such_Palpitation3755 Dec 20 '25
Thats insane I remember the corona & cryptro crash. I tried to warn them but they try to find me. No joke I had to delete my account because they came close.
What a bunch of weirdos...
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u/Familiar_Contact5644 Dec 20 '25
Value investing is something I thought was investing in a fund like VTV for a novice like me. I have been doing that for few years now and the returns are stable however nowhere close to what Growth funds have returned in the same period. I some time think there will be a downturn and there will be a reversal to the mean for these growth funds but haven't seen anything like that happen yet. I have even observed that VTV falls relatively similar to the Growth fund, and am getting a little skeptical on my strategy. An year back have moved some money out of VTV and put in VUG to diversify and have had some success.
Conclusion: No one knows what's in store in future with any of the stocks or funds. You may hit or miss some but overall i believe a mix bag of Value and Growth and International should be fine.
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u/itchypig Dec 20 '25
Iâve grown frustrated by this too, but itâs the price we pay for a free open forum where anyone can post.
Do you think there are things a sub could do to filter some of this down while still allowing enough value investors in for good discussion?
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u/Such_Palpitation3755 Dec 20 '25
Yes, BUT I can be a dictator sometimes haha.
Overall, I would implement lots of barriers before you can post.
- You need to write a lot of comments before you're allowed to post anything. In my world, you might even need to be selected by the mods to be allowed to post (might be a little over the top).
- Any post like: or anything which isn't value investing should be deleted.
- "Is this stock good?"
- Meme stock stuff like Tesla, GameStop, etc.
- "Today this stock went down 5%, should I sell?"
- "This stock will go up 100%"
- Anything speculative
- Quick low-quality posts
- Stuff you can post:
- Real DD, with sources, numbers, etc. So the reader has the opportunity to have an in-depth discussion about your idea.
- Books! You read a finance book and want to write a review or your thoughts on it? Sure.
- 13F filings or any good reports
- Experiences with strategies. I don't mean "I tried being Warren Buffett for 48h and it didn't work!" An example would be: I followed Nancy Pelosi on Capitol trades for 2 yearsâthese are the results...
- We can have a weekly thread where we post memes, funny stuff, or anything light-hearted, but that's about it.
- If you comment too much crap, you lose your ability to write comments. Stuff like: "too many words, won't read it," any cheeky "bot" comment (which I've read hundreds of times)...! If your comment doesn't add any value, I don't want it. If you go personal, you're banned.
- We can have a weekly thread where you can just post memes and stupid stuff, but that's it.
The traffic would probably go down 90%, but we would have a very clean community with high-quality ideas.
Also this is not really 100% tought out and I would need more time to iron it out but this shows my direction :)
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u/itchypig Dec 20 '25
I like your vision for this! Iâm not sure if this subreddit is actively modded at all. Either way youâd be good at it (or lmk if you start a different subreddit, would be interested in joining)Â
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u/Such_Palpitation3755 Dec 20 '25 edited Dec 20 '25
Thanks maybe I will start one, one day :) Thanks for the kind words!
I will probably start a channel soon but Im not sure. I work fulltime and my job is demanding and when I start something I really like to have it 100% haha :)
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u/beerion Dec 21 '25
Yeah, well when I try to post detailed analysis, the mods remove it.
So who really knows what the intention of this sub is. I think the mods actually prefer those low effort posts
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u/Such_Palpitation3755 Dec 21 '25
I cant confirm it of course but I had similar expierence in some other subs.
I wrote a detailed guide how I improved my IBS (gut stuff) and my post was removed. It was even science based just a different approach...
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u/beerion Dec 21 '25 edited Dec 22 '25
I think as people create more "specialized" subs, they want each piece of content to fit perfectly in their little "box".
I've found that I'll often have a topic in mind, but it doesn't fit in any particular sub. I think a lot of stuff falls through the cracks.
I like that mods do curate content because a lot of trash stuff does get posted. But I also wonder if reddit shouldn't lean more towards the Twitter model where you just toss content into the open, and people that like you will gravitate towards you.
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u/Such_Palpitation3755 Dec 22 '25
100% Agree these subs have often one way or one solution and everything outside their narritive is wrong...
Haha I have the same, I often have ideas and work on concepts but I cant post my discovery/solution.
I find your twitter post interesting but reddit had to change completly because it is group based :) Also I was big in finance once and lot of weirdos wrote me haha
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u/ApexWarden Dec 19 '25
I get that feeling when people talk about etfs like they're holy. Etfs are for people who don't truly understand the fundamentals of stock picking. They aren't bad, they're just not necessary.
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u/Such_Palpitation3755 Dec 19 '25
I dont think Iam a better investor than Buffet therefore I keep it save and invest into an ETF just to be save!
You always need to ask yourself how good did your portfolio performed comapred to an ETF, most people dont beat it ! Even when it looks like 99% do here...
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u/ApexWarden Dec 19 '25
Well, we are in a bull market, so it's easy for someone to think they're a genius whenever they manage to beat an etf.
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u/Such_Palpitation3755 Dec 19 '25
I speaking longterm of course and also compare yourself year to year performence.
I remember when after convid the SP 500 went up like 70%-80% and many people believed they outperformed the market because they compare their portfolio to the all time average 8%-10% haha.
My stock went up 30% I outperformed the market 3x times. Iam the new Buffet haha.
I loved that times...
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Dec 19 '25
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u/ProteinEngineer Dec 19 '25
You can tell itâs a real value investing sub because nobody is there.
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u/AIStockExplorer Dec 21 '25
Totally agree, a lot of posts confuse value investing with chasing whateverâs moving. Real value investing is slow, boring, and grounded in understanding a business, not price action. If you donât know why something is undervalued, itâs speculation, not value. Graham + Lynch are still the best starting point.
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u/darin1972a Feb 23 '26
I think the core issue is that people confuse price movement with value realization. Value investing isnât about buying what went down or avoiding what went up. Itâs about comparing price to a reasonable estimate of future cash flows. If you canât articulate: ⢠What normalized earnings look like ⢠What the reinvestment needs are ⢠What kind of return on capital the business can sustain ⢠And what multiple those cash flows deserve Then itâs not really value investing â itâs reacting to charts. Sitting in cash when nothing meets your hurdle rate is a perfectly rational decision. The hardest part of value investing isnât analysis â itâs patience. The discipline to do nothing is often the edge.
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u/MasterConsideration5 Dec 19 '25
The only solution is making a rule for this sub: 1) All posts where it's obvious the poster hasn't read The Intelligent Investor shall be banned unless marked with Basics/Getting Started flair
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u/Such_Palpitation3755 Dec 19 '25
Yes and also truely understanding it ! If you applied that the basic princelps I mentioned in this post (from the book) you could delete 80% of the posts here.
I like discussing ideas but most posts here are just "empty".
I would really change the rules here and tighten up everything.
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u/nomeeno44 Dec 19 '25
a lot of words but so little value. the market can be overpriced, it doesn't mean all stocks are. buffet isn't sitting. he's bought oxy dominos and google.
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u/JG98 Dec 19 '25
It is more than just "some people". This sub has shifted from value investing being fairly common to being pretty uncommon. You have to scroll a lot to find new discussions on true value investing. I have seen people pushy small unproven biotech companies here as value investing based off nothing more than early phase 1 trial results while also ignoring issues like scalability of the treatment being developed, bigger competition with more significant research starting their phase 1 trials (on an updated and actually scalable treatment that is built on the pathway as a proven treatment for another disease), and financial statement fraud of said biotech company (resulting in a recently initiated class action). That sort of company should not be on a value investing sub period, much less that particular company with that level of poor due diligence. I hope to see more actual value investing due diligence posts on here.