Scepticism in Value Investing

Scepticism is important for any investor. It's always essential to challenge assumptions, avoid herd mentality and think independently. Scepticism keep investors safe and helps them avoid things that are too good to be true. John templeton warned about the risk that's created when people say it's different this time. But he also allowed that 20 % of the time they're right. Given the rising impact of technology in the 20 first century, i'd bet that percentage is a lot higher to day. The basic equations of finance were not built to handle high, double digit valuations as far as the eye can see.