Key insights
- The author expresses a loss of faith in value investing, observing peers achieve better returns with high-valuation tech stocks. This sentiment, reminiscent of pre-dot-com bubble conditions, raises concerns about a potential market peak. The author questions if this feeling is a contrarian indicator of an impending crash or if fundamental market dynamics, influenced by retail investors and tech dominance, have altered traditional value investing principles.
I’m staring to lose faith in value investing. I see my peers investing in stocks with outrageous valuations yet they get better returns than me. I feel like I’ve been saying “the market is overvalued” for years now and yet no ‘true’ crash has happened in almost 20 years (I don’t count covid as a true crash). I’m tired of being pessimistic about the market. I’m tired of seeing less educated investors outperform me by investing in tech.
I was too young to invest during the .com era, but I feel like the vibes are extremely similar. Did anyone who lived thru that time (or ‘08) start to lose faith in value investing right before the crash? Is the fact that I’m feeling this way prove that we are at the precipice of a crash? Or has Buffett style value investing fundamentally changed due to the rise of the retail investor and the centralization of tech in the market? Just curious what others think.