Money Maze Podcast 103: Value Investing: Down But Not Out? With David Einhorn, Founder & President of Greenlight Capital
Jul 11, 2023
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Value Investing's Structural Shift
- The value investing industry has suffered irreparable structural damage, but opportunities remain for those who adapt.
- Passive flows and diminished active buyers require new strategies focused on market-structure defects.
Stop Counting On Old Buyers
- Do not rely on past active-buyer flows to lift mispriced stocks because those buyers have shrunk.
- Adjust your approach to anticipate fewer long-term buyers and shorter windows for re-rating.
Markets Are Driven By Flows And Algorithms
- Today's trading is dominated by passive index flows, ETFs, sector rotations and algorithms rather than big active accumulation.
- Market behaviour now centres on correlation trades and speed, not fundamental gradual buying.