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The History of Value Investing
Prior to 1929, prior to the great crash of 1929, the stock market was essentially the Wild West. Ben Graham introduced concepts such as margin of safety and buying companies below their book value. Warren Buffett studied books like Phil Fisher's "Common Stocks and Uncommon Profits" The fifth valuation phase really started in the mid-90s to early 2000s, thanks to the adoption of the internet.
Clay Finck chats with Brian Feroldi about the valuation mindset spectrum, and how investors can determine which valuation approach investors should use when analyzing a company.
Brian Feroldi is an expert content creator in the investing space and a writer and contributor to the Motley Fool.
IN THIS EPISODE, YOU’LL LEARN:
00:00 - Intro
01:32 - What the valuation mindset spectrum is.
04:50 - The long history of value investing.
10:00 - How investors should think about the valuation spectrum in regards to their own investment approach.
14:47 - Different valuation methods investors can use in their toolkit.
32:23 - Brian’s view on stock-based compensation.
42:45 - His biggest lessons from the investing the past couple of years.
46:27 - Where on the valuation mindset spectrum Brian prefers to invest.
46:53 - Why venture capital investors largely ignore Buffett’s #1 rule of investing.
52:43 - Brian’s updated reverse DCF analysis on Nvidia.
59:21 - His updated assessment of MercadoLibre’s progress.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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