Key insights
- A new value investor is finding that applying fundamental analysis results in buy prices far below current market valuations for large-cap companies like Apple, Amazon, and Microsoft. This suggests a potential overvaluation of these companies based on traditional value metrics or a misunderstanding of how to apply value investing principles in the current market environment. The post implies a bearish sentiment towards large-cap valuations.
Hi all,
Hope you're having a good day.
I'm a newbie to value investing. Prior to this, I've only been accumulating ETFs like VOO, apart from some investments in hot tickers like NVDA and NBIS.
My question is, if I apply the fundamentals of value investing to any business, their fair price/buy price is ridiculously low to most of the prices. With using this logic, I cannot enter the market in any of the big companies like Apple, Amazon, Microsoft.
Am I missing something here? What am I doing wrong?