David Einhorn: Not Sure Value Investing Will Come Back

"Nobody knows what anything is worth," Greenlight Capital founder and President David Einhorn says during an interview with Sonali Basak at the Robin Hood Investors Conference.

[@arigutman]

For real investors, value investing is all investing really is... I don't even know what this means, "not sure value investing will come back..." It is always and will always be about the long-term and therefore value investing...

[@Nolsie]

If the government never lets the market drop you never have real pressure for money to rotate back into actual profitable valuable countries.

[@playerzero2236]

It's about to make that exact comeback sooner than you think ;-)

[@UziGameGP]

Guy is spot on. It's a digital age of lots of retail investors and algorithms, they cannot do value. All that matters is growth. Value is complementary however, once you have a mature portfolio It's time to dig in value/dividend stocks.

[@amourtextiles]

Robin Hood conference that sums it up

[@wilfriedvomacka1783]

This video made my day! Maybe month or a year. I really believe value investing is the way to. I want to learn everything about it and I read about value investing everything I can put my hands on. But recently, I started questioning. Isn't AI faster and better equiped to find value? Will there be opportunities in near and long future. But after hearing David Einhorn, an investor which I highly respect, I found out that those new AI's are maybe focused on different styles of investing. Plus there are lots of passive money in market. Great.

[@witHonor1]

In other words, "we can't make money accidentally anymore because the nonsense is too ridiculous to find value." These guys shouldn't wear suits, they should have red noses and painted smiles.

[@DavidL1980]

Imagine buying a company because you want to own it.

[@biotechresearch9008]

It's his final sentence that is most interesting. If the greater fool theory does not allow you to realise alpha on an investment then one will have to rely on the companies to pay you via div/buy backs. So the shift could be towards Quality compounders, or even maturing moats spitting out FCFE.

[@3377ftw]

Oh David... Did you not factor in unlimited QE the last 14 years? Value will return after QT skull f's this market back to normal

[@simrans3675]

Yeah right, we should all buy industrial stocks. Google, Apple, Tesla, Amazon, Microsoft....all solid companies that have all growth and macro tailwinds for where the world is headed: AI, ML, Cloud, Edge computing, Robotics, EVs....are just going to go to 0. Come on man. Look at where the world is headed next 3-5-10 years and tell me we need Coca cola and mcdonalds and JNJ stocks. No offense to those - I own some of them but let's be honest. Growth drivers are in tech and that's how the econ will grow.

[@3377ftw]

@@simrans3675 are you replying to the right person? I said nothing to dispute what you said, as nothing I said is relevant to what you said lol

[@simrans3675]

@@3377ftw Perhaps, I misunderstood :-)? Your saying that 'Value will return' made me infer that typical value stocks: Dividend, Utilities/Industrials/Consumer Staples etc will return and more so vs these tech companies? Sorry, if I misunderstood. I was also trying to be playful, not dead serious in my commenting - sometimes hard to show that in this typing world!

[@fturla___156]

I think that's a sentiment many people have, but you are one of the brave ones to actually speak it out loud.

[@wallacejohnson7083]

You mean monetary policy has distorted valuations bc there is so much money circulating in the system? Therefore, when the market normalizes investors can properly value companies relative to their cash flows, or money they will get out of the company over its life? If that were the case, I would still argue recognizing a stock being undervalued before the market, like Buffett, is no longer a viable strategy as the information is increasingly available due to technology. Not even Buffet outperforms the S&P these days, and if he does, its only bc he moves money during economic downturns to offset losses. Now, I will say, value investing coupled with activism seems to be a viable strategy, which Einhorn does as well. Icahn, Ackman, Einhorn, they recognize deficiencies in management and leadership, buy a position, put people on the board, make changes, company and share price improve.

[@aratrex3]

Shorting tesla soon?! Let me know!

[@hanst7218]

Tesla is fair valued

[@myutube8x]

Amazing sh_t going down in the financial world. No value investing in the market any longer .... let alone, we can't even pick politicians or our own food anymore ... based on value.

[@kensmechanicalaffair]

Put that section up with Wibur Ross.

[@hangender]

Yea gen z can't do valuation for sure. They are pretty good at memes though

[@hangender]

@@Adam-uz3hj he says no one can do valuations. Which includes gen z, right? Lol Learn to read, bra

[@realitybites1794]

💯

[@12345678910111213106]

Geez I think he's right

[@fkklkomvocl1234gv]

Perfect clickbait, I mean it in a good way!

[@m2mo100]

I don't understand

[@davidbixby2124]

he manage fund symbol "glre " book value $14.05 trading @ $7.34,

[@SpaceTravel1776]

So he used to be able to figure out what companies were "REALLY" worth and after he bought shares he'd sell them to some sucker for a higher price. But now the world doesn't work like that because passive investing takes away more and more of his suckers, and suddenly the market is irrational. Boo hoo hoo.

[@millenialmusings8451]

Isn't that what Warren Buffett did too? Buy undervalued companies and then expect them to go up in value?

[@af959393]

His Fund is called Greenlight Capital, he is a great investor

[@mingdianli7802]

Good interview

[@dagsterblaster4973]

Value investing is KILLING it right now. The only value being the US Dollar. Any good value/contrarian saw this mess coming. At the bottom of this? Intelligent value investing will find the bargains from the garbage and make a great upside return. I've been at this 30 yrs and read lots of financial history, I read Securities Analysis in one weekend, and that latter book has a fantastic concept for this market..."broken fixed income".

[@UziGameGP]

You're spreading fud all over investing channels. Value is not killing anything, it's just holding better than growth stocks that got pummeled due to fed tightening and the macro economics + geopolitical events.

[@tokhmi2006]

This is actually him marketing his fund by saying he has fewer competitors now.

[@dontdoitbro5495]

wtf is he talking ahout. he just made up some excuse for underperforming for the past 12 years. dude if u say on one hand that passive is buying anything therefore making things overvalued then u say that the only things that are not going up are your picks then that just means u suck

[@davidokon9091]

Sure, you need a high trading experience to make good profits. Takepile for instance offers up to 200x leverage with no slippage and a strong liquidity system for guaranteed solvency. So yes you could make lots of profits and also lose a lot. So yes you need good experience.

[@rwnorris24]

Wonder how she got these interviews. Cleavage. Cheap. Sincerely, R.W.N II

[@trave7644]

What a crook this guy! He cant dupe people into buying his expensive actively managed funds.

[@kiklocus4660]

Tesla really messed him up

[@fturla___156]

The reason why value investing hasn't been relevant in the last decade is because all the investment vehicles are artificially overpriced. There is so much garbage stocks and zombie companies that only survive through manipulation of asset holdings and debt that actual value stocks are covered with malignant management concepts of making money that isn't viable when operating in an environment where you actually have to work in the field your company is in rather than manipulate financing, cashflow, and non-operational business dealings that do not enhance the main focus of a business in hand.

[@barrymckeown5783]

value hasnt made a comeback??haha oil stocks 2020 made a killing from them still holding definition of value stocks, the fact he obviously missed out speaks volumes

[@kongatthai]

David Einhorn is one of the most overrated investor. His trading strategy is long-short and his value approach based on accounting value. Moreover, His record is not that impressive. He is just an average long-short trader you can find a lots in the market.