US Value ETFs Have No Value except BRK! Emerging Value ETF OK

[@BarsonlineOrg2013]

Thank you so much for the honest content and not trying to sell some BS. 🎉

[@Value-Investing]

:-)

[@Jose_Lima]

Sven, thank you for one more nice episode. I am an amateur investor for close to a decade, and after getting burned many times, I switched to DCA into ETFs only, and I am very happy about it. You know, it doesn't matter how many videos you do, amateurs like me in all honesty, will never have the time to follow a portfolio of at least say 20 individual companies like professionals. So, there is rationally no better option then ETFs. Retail investors that want to satisfy their stock market gambling gene should just use a virtual portfolio or limit the allocation to small portion of the real one. Best!

[@philxue]

Yes I used to try to follow few companies buts it's impossible to keep track. Better to have broad market index or at most follow one or two companies that will do well long term

[@Whatsthis1do]

Yep. Avantis ETF's are my picks. Sven does raise a good point about the div's. Check out Rational reminder or Ben Felix for more info.

[@steveherceg6646]

very good analysis. 95% of U.S. assets are overvalued. Keep up the good work! what do you think of this one FLKR @ 52 week low.

[@Value-Investing]

it has just $100 million under management, don't know for how long will they keep it open, but, we have discussed SAmsung / kzbin.info/www/bejne/sHqaYWBqnpVlmbs

[@guy7018]

Spot on with your analysis. I'm always looking for and finding very good value holdings with solid dividends as the index funds and markets keep pumping the same overvalued names. In this market it requires a lot discipline and patience waiting for the market to correctly value companies, but it is inevitable.

[@karateklaus786]

Hi Sven! Love your work and the videos. It is very hard to learn the right way of the investment journey. But it is very nice from you to share your thoughts. I watched a lot of videos and if am right and on a good way i now would like to take a look into Brazil and actually digging deeper into Cosan S.A according to the video you made 6 years ago! Thank you for your great work!

[@DanielKekenak]

Great video Sven, really like the recent ones!

[@Value-Investing]

Glad you like them!

[@palamane1]

Sven, thank you. You make a good case for the shortcomings in using Indexes for capturing the value premium, especially in a high-priced market. I have to think about your comments. I keep a portion of my overall portfolio in index funds (Large Blend, Large Value, Small Blend and Small Value), but have a tilt using individual stocks. 1) On your comment on Vanguard's disclosures--yes, I absolutely agree, and it used to be easier to find for the DIY investor in Vanguard's prospectuses and website. 2) For its largest index funds, Vanguard moved from S&P to CRSP indexes, because management argued that the product was less subject to conflicts of interest that S&P might have (plus the licensing from CRSP was supposed to be cheaper); you see the biggest differences with the small cap Russell and S&P indexes. 3 Your first slide had a list of tickers, ending with "SVEN" and I worried for a moment that you were starting a SVEN ETF! ;-)

[@Value-Investing]

:-)))

[@phd_angel]

I often look for the top holdings in a ETF and buy them instead. My portfolio is a mix of ETFs and stocks, a nice balance of hedge, risk and peace of mind…

[@mikkelhansen3714]

I think UHC is one of those disgusting and uninvestable insurance companies, that grow their business by rejecting claims and destroying the life of their customers. This model won't work forever

[@cesardrudi8238]

Justice served

[@mikkelhansen3714]

@@cesardrudi8238 Well not quite the right way though. What happened won't change anything

[@pongop]

you just described the entire insurance industry and for-profit healthcare system

[@Msjdixhfhshssjsjs]

Avantis and Dimensional Fund Advisors are the real players in the value etf space. That’s who you should check, not vanguard.

[@Value-Investing]

thanks for sharing!

[@pongop]

Good point. I looked into all the value etfs/mutual funds, and ended up investing in IVLU (iShares), AVDV (Avantis), FISVX (Fidelity), and VIOV (Vanguard).

[@Whatsthis1do]

Great, now I don't have to leave that comment :) Show Avantis some love Sven! This video made me look up AVUV and the dividend sure looks low for a value etf. Has performed amazingly for me but I could be the turkey. AVGV = 2% AVUV = 1.5% AVNV = 2.9% better... but still not really value. Value always gets hit harder in rough times, counter intuitive. All the best

[@diegotamburini7187]

Thank you Sven! such a great video What about ZPRV, maybe some value there?

[@seveneleven4831]

Question is what's the premium paid to BRK. ETF has the mechanism that the market price is almost exactly the NAV of the stock but BRK does not.

[@antonisdee]

Vanguard doesn't do value (or other factor) ETFs well. Look into factor ETFs by Avantis or Dimensional, which also screen for profitability and momentum.

[@PavolKosik-b3u]

Are you surprised? They buy cheapest stocks in the index so they end up with the biggest junk in the index. Value investing is not buying rotten vegetables because it was cheap.

[@JulioFeoUNAM]

What do you think about SCHD?

[@phd_angel]

I was thinking the same thing.

[@paulchevrette481]

Honestly tracks more of an index than being a value centered ETF. Its like saying what about the snp500, that being said I like SCHD.

[@mkz42279]

Excellent video. Capturing value in a passively managed fund is tricky. Don't forget that value is a premium only in small caps that are profitable. So AVUV is worth a look in that regards.

[@Nemi51500515]

I agree with you. It is like those articles on the financial websites that say something like: “Value stocks (and they are defining value stocks like you outlined in this video) are their best price relative to growth stocks since, bla bla bla”. Making it sound like you are making a smart play buying their definition of value stocks. If growth stocks are overpriced by 10x and “value” stocks are overpriced by 4x, then I should buy “value” stocks? This is just stupidity.

[@Value-Investing]

:-)

[@SergiMedina]

I understand the usefulness of ETF’s, but it's always stock picking for me for many reasons... except if it's with BRK! But then again, I wouldn't invest all or most part only in BRK, even with the genius of Buffet and being a financial fortress... Plus almost everything is so overvalued now, I don't think they will do great. Thanks!

[@DEFCON5307]

What is your opinion on the gradual move from cigarette butts (Graham) to more quality&management oriented (Buffet, thanks to Charlie) and now exclusively exceptional quality by Terry Smith? They focus a lot on the "forgotten" principles also taught by Buffet & Charlie, like FCF instead of EPS as a measure of value, and rather having a great business at an okay price than vice versa

[@AlanMwatson-xyz]

Exceptional quality at lunatic multiples is still a risky investment with the wrong asymmetry: moderate return if it all turns out perfect, potentially poor returns most likely.

[@jonathankrimer]

What did you mean about a "pension in canada, poor you?"

[@Value-Investing]

what is the minimum pension funds charge there, 2%? and that for nothing, hard to compound with that...

[@erikhultgren1576]

So, should you sell a S&P fund if the pe so high right now?

[@Value-Investing]

only you can know whether it is a sell

[@Jose_Lima]

If you are not thinking on retiring any time soon, the common knowledge tell us NOT to sell, not trying to time the market, but instead continuing DCAing. Look at S&P historical statistics.

[@PavolKosik-b3u]

​@@Jose_LimaCommon knowledge tells us that stocks are the most overpriced since 2000 and than market moved nowhere for 16 years. Tell me one time when you make good money holding index at 98th percentile PE valuation?

[@mathewwilson9776]

@@Jose_Lima Common knowledge: don't bother understanding what you own, just buy this chart, which always goes up and will always keep going up, forever, because it only goes up 😂

[@Deepzombie]

@@mathewwilson9776it’s not that it always goes up. If you plan to sell in 30 years the index will likely be higher than today. It is a saving strategy and it works well without making any decisions. Not everyone is an investment genius except on you-tube.

[@vegas_vince1238]

Great value here. Thanks Sven!

[@roberttaylor3594]

Well, I dont see how they can be 'value' if they are invested in the S&P

[@NHL_Stats]

Hi Mr.Carlin. I checked on Yahoo Finance and the PE ratio of Berkshire is about 9.42. The price is approximately 465 and the EPS is approximately 49.5. So 465/49.5 = roughly 9.42. Do they have the wrong data because it seems different from yours? Thanks!

[@mikkelhansen3714]

Their PE ratio is always wrong, as it doesn't account a lot of business related things. You should go check out their yearly income statements where they always disclose hidden earnings and such

[@Value-Investing]

just read the financial statements, any, of BRK, Buffett explains it on the first of second page.

[@anderson6379]

Such a great lesson. Great topic. Thanks

[@Value-Investing]

Glad you liked it!

[@siajaan]

I think in terms of value, CVS should be at a good buying point, PE of 14, 4.7% div. What’s your take?

[@dogtown1ewok]

Sven is the GOAT

[@claudiovallone9217]

Are short term treasury bonds the best option today?

[@chingwinglee6243]

Thank you so much Sven. How’s your view on the innovator ETF such as APOC providing the 100% buffer for loses? Is it a good way to invest in an uncertainty market right now? Thank you!

[@sultanahmed3854]

A very compelling case in favor of BRK-B vs. VTV. However, what is confusing is on a down day like today, BRK-B is down 1.4%, whereas VTV is down 0.62%. It seems to me Berkshire forgo a lot of gains by offloading a lot of AAPL and BoA too early. It must have set BRK-B back quite a bit. I would say they could have gained at least another 10% by not exiting these holdings early. Whatever happened to buy and hold forever?

[@jonathankrimer]

Warren doesn't try to time the market. The rest of are definitely trying to time the market. Ha

[@04pradeep]

Amazingly helpful video, I was banking on putting most of my money to VTV. Good to know that it can go down as well. do you think dollar cost averaging spy and VTV will be similar to BRKB?

[@yeschuamaranatha2773]

Very good video :) Thank you again. Not everything that has value in its name is actually value :-) Maybe you could review one of the most hyped ETFs at this time, the SCHD (Schwab Large Caps) it looks a little better than most.

[@thewonderof06790]

I'll stick to finding value on my own. I only do sector ETF's when I think a sector is undervalued.

[@thomas0234]

What’s your opinion on Quality Investing then? (Buying the highest quality, low risk businesses and not focusing on the price as much.) I agree that a PE of 38 for a retailer like Walmart is to high, but what about a 38 PE for a very high quality company? I understand that every company can become overpriced at one point but sometimes I get the feeling you are not willing to pay up for anything at all!

[@Value-Investing]

I remember checking it in 2016 and it wasn't quality, few liked it and the PE was 10 or 12. So, it is all a cycle...

[@thomas0234]

​@@Value-Investing Yes no, I agree that Walmart isnt really Quality. But I was talking about paying up for Quality companies in general. Like what about very strong moat companies like MCO that trades at a 44 PE. Is it OK to pay up for Quality?

[@mathewwilson9776]

Investing has nothing to do with paying up. If a business trades at 40x earnings, where are your future returns supposed to come from? Your only shot is to keep your fingers crossed that growth persists, that margins stay high and that multiples stay high. If either fails (and they normally fail all at once) you are doomed. Moody's distributes roughly 60% of its earnings through dividends (0.7% yield) and buybacks at absurd multiples (another 0.7% yield). Revenue cagr on any 5-year rolling window is 5-7%. Where are you going with this? You are simply keeping your fingers crossed the the shares keep miraculously going up forever, aka gambling. If the multiple contracts to 20x over the next 10 years (-7% cagr), no return. If the business deteriorates on top of that... You are only okay in one rosy scenario.

[@thomas0234]

​@@mathewwilson9776 Yes but that’s the things with these high quality companies. There is a reason why their margins and multiple are so high. Their strong competitive advantage is what keeps the fundamentals improving or at least staying the same. In the case of Moody’s, they don’t grow 20% per year, but they can grow this 5-7% for a very long time. The reason why Moody’s has done great in the past and I believe will do great in the future is not because I have my fingers crossed, it is because of very good reasons. And in the case of multiple contraction, whether you buy a company at a 44 PE or an 8 PE, doesn’t necessarily mean you can lose more at a 44 PE. When both go to zero, you lose 100% either way. No one knows what the right price for a company is. All I’m saying is that it is okay to pay more for a Ferrari than a Fiat. If I where to “gamble” as you say, I would buy a car for the price of a Ferrari not knowing that it is a Fiat.

[@pearlperlitavenegas2023]

😂🤣🤦🏻‍♀️​@@Value-Investing

[@mikkelhansen3714]

What do you think of a short strategy for extremely overvalued retailers like Walmart and Costco? They definitely deserve a 50% haircut, and have very limited upside, minimizing risk - not like you are shorting a company that either goes bankrupt or will have exponential growth over the coming few years

[@Value-Investing]

I looked at the out of the money put options, but then, it is not a game that attracts me personally!

[@mathewwilson9776]

Too risky to short simply because it is up a lot. To me shorting is a short-term reactive trade: you wait for the weakness and then structure reactive trades high risk/reward around that weakness while the downtrend lasts. Good examples today were PLRT or APP. PLTR was extended, it gapped up for no reason and started downtrending pre-market. At the open, you could short it as it broke under pre-market lows, risking the high of day. It then retraced to VWAP and rejected it, so you could add to your short there, with stop above the pre-market lows. It made a new low, retraced to VWAP again, rejected it again and consolidated near the lows for a few minutes. You could then add short when the consolidation broke and you could keep covering progressively, until the downtrend breaks, which as of now still hasn't happened.

[@nicolaslehmann2035]

Hey Sven, thank you as ever for your videos. Why do you imply the fact of Alibaba being in China as a negative thing ? What is your general take on China ?

[@Value-Investing]

China doesnt have much to do with it, if Trump says China no good, the gors your money!!!

[@roberttaylor3594]

where can I get that SVEN ETF?

[@CitizenOK]

Sven what do you think about UBER? The price to FCF should be around 14 at this price by the end of 26. I know this is not strictly a value but it is sort of GARP.(maybe lyft is trading a bit cheaper)

[@jovokrneta1412]

What do you think about IGM... it has a bit higher fees compared to VGT. IGM has less invested in the top 3 US stocks and has a bit more balanced holdings compared to VGT. It may fall in short time but long term as Buffet says "Tech outperforms everything"

[@Value-Investing]

don't know :-(

[@danwesson1934]

I would love to hear your thoughts on HSY and today’s revelation. Thank you

[@Value-Investing]

not much to ad there

[@pearlperlitavenegas2023]

add 😊

[@dr.b3652]

I am looking at Consun pharmaceutical stock in HK ,low double digit growth with single digit PE and 7-8% dividend 😊

[@tonyont700]

thanks Sven!!

[@AlanMwatson-xyz]

Seriously, who in his right mind keeps pushing Walmart, Costco, Apple… ?

[@DennisdeRuiterrrr]

Bots

[@azulsimmons1040]

Rubis SCA is based in France. Damn. Double taxation of capital gains for Americans. I can't touch Rubis. No wonder the dividend is so high, after they clip off double the percentage it's nowhere near that high.

[@bonnywail]

Everyone needs a Sven in there life..👍 Thankyou for your knowledge and wisdom, The more information we learn the better our judgement will be..We are consistently learning!! Your channel is a wealth of Knowledge..

[@Value-Investing]

thank you for your kind words!

[@Hrx84]

Every strategy which make money is good. Value investing sometimes work, sometimes not. It is not holy cow.

[@Value-Investing]

proper value investing always works!

[@OptionData-e6b]

When you say you hope for $1 to become $3 down the road, $1.5 worst case, but definitely not $0.5... You mentioned Liberty Global the other day, which Klarman has been buying over the years and on which he is doing terribly. Not sure what you guys see in these weird companies but it doesn't seem like you are inmune to severe contractions. Same thing goes for China or virtually anything you mention. Maybe the Nvidias and Palantirs of the world are a bit too much, but I don't see these kind of contractions hapenning with Apple, Amazon or Microsoft, good business that will certainly be higher decades down the road printing cash.

[@Value-Investing]

doesn't mean it can't go lower, in the meantime it does 15% buybacks, so you get the value over time, no worries

[@OptionData-e6b]

@@Value-Investing thank you.

[@Sayilswtor]

SCHD?

[@stevec.7017]

Rob Berger considers SCHD to be a value fund.

[@Value-Investing]

will have to make a vid, many requests

[@magnets1000]

that ishares MSCI EM value ETF is 30% China!!

[@poll1986]

Regarding Berkshire the problem is what is happen when buffet passes away

[@mariof1468]

Why would be a problem?

[@poll1986]

@mariof1468 there could be a significant change in company policy and core values.

[@siggiAg86]

I like this kind of videos

[@jsmith-pf2bt]

If you look at BRKs EV/CFO ratio then it does not look so cheap.

[@discoveringcalculus]

What about SVEN? 😂

[@Nemi51500515]

I agree with this video, but I do not agree with you on buying BRK though. BRK is overpriced by all historic measures. Period. Warren is not buying, I am not buying. If and when domestic stocks fall, BRK will fall as well. THEN I will buy more BRK. And so will Warren (assuming he is still around when that happens).

[@Value-Investing]

I am just saying it is better than the S&P 500 - I don't own BRK.

[@jonnes__4657]

Warren Buffett is buying BRK at a very low P/B of

[@mikkelhansen3714]

He doesn't say buy BRK he says it's value long term. he even states that it normally trades between 10 and 20 PE and now is 25

[@jonnes__4657]

@@mikkelhansen3714 Now its 20 forward.

[@icossss4352]

Thanks !

[@elvisthepelvis99]

You set your sights on ADM when it dropped 20% a year ago, claiming it could be a good investment. A year later, ADM is the same or worse, while the overvalued S&P 500 has gone up 30%. So, the solution for you to tell us the good companies is to subscribe to your platform?

[@pearlperlitavenegas2023]

Yoit comment sounds like ADM is capitulating it's on my watchlist if it hits its 52week low again I'm going to start buying

[@jonathankrimer]

That's not what he said. He said relative to the risk, it's a good investment. Big difference @elvisthepelvis99

[@arminpeter125]

With Birkshire going massively into bonds, wouldnt you yourself do better buying bonds yourself, rather than buying Birksire. At least until they raise their exposure in stocks again. A company that does devesting instead of investing does not sound like a good investment.

[@Value-Investing]

if you have a better than Buffett mindset:-)...

[@arminpeter125]

@@Value-Investing 10-20 years ago, I would have loved to be in B RK. Now, B uffet is sellling, and I think, when the Market will finally fall to median evaluations, B uffet might not be around any more.

[@arminpeter125]

Maybe an idea for a new video would be to look at other Investors, that follow true V alue investion. Monesh Pabrai comes to mind.

[@roberttaylor3594]

Canadian banks dont seem to go bankrupt...ever. ditto Australia, I think.

[@jamshidkhavari9064]

Mutual Funds and ETF's are made for lazy people, greedy financial advisors and off course complicated Fed's regulatory. A rational person who want to have passive income, must self educate about money, market and passive income. Otherwise you will be working until your bones fall apart and die. Not having time or money to educate yourself is another excuse for example Americans spend 4 hours a day in front of a screen ie waste of time. I like your recommendation about BRK and most of your recommended stocks. Some stocks like Nike have local vibe, fashion and athletics to them then only financial. Good job and keep up the good work! One would wonder what is your(Sven) own portfolio's return is? Sometimes showing your hand would prove the point! mu 2cetns.

[@guy7018]

UNH is way overvalued: CNC and ELV are not and in the same sector.

[@Daniel-v5n3v]

0% emerging markets is the best value out there.

[@paulosousa1357]

SCHD !

[@PavolKosik-b3u]

BRK is very overvalued and expected no growth above inflation by analysts. Buffett is so old that he cant buy anything even at cheapest markets like in 2020 so its hedge agains nothing. I can hold cash by myself and dont need to buy BRK to hold cash for me while paying $1.26 for every $1 he holds.

[@mikkelhansen3714]

He doesnt say to buy:)

[@Value-Investing]

thanks for sharing!

[@PavolKosik-b3u]

@@mikkelhansen3714 Thats good. Buying company which is expected to grow 4%, pays no dividend and is trading well above 20Y average PE is not a good idea. Especially when their chairman does not see any value in stocks last 15 years while there have been so many great value stocks available. Buffett knows financials so why he didnt buy Fiserv when it was crazy cheap in past 2 years? Fiserv was established 39 years ago and had 38 years of double digit earnings growth. And Buffett could buy it at PE 14. That I call value stock. Buffett does not see any value and I see so much value everywhere.

[@TheMirekp]

Sven. You again repeated the claim that “Buffett went all-in to cash". This is not true. He trimmed some of his holdings, but the vast majority of his wealth is still in stock. I don’t believe that he is trying to time the market before crash as you keep suggesting.

[@Value-Investing]

all that he could sell he sold, that is calling going into cash and 30% of assets are cash, for Buffett that is everything!

[@noredbull1]

1

[@pearlperlitavenegas2023]

Scammer Bots in the comments

[@adamm2716]

got me some brk.b