Wealthion - Be Financially Resilient

Sven Carlin: The Return of Value Investing

8 snips
Oct 15, 2025
Sven Carlin, a seasoned value investor and expert in fundamentals-driven stock selection, joins the discussion to explore the potential resurgence of value investing. He highlights the alarming overvaluation in U.S. markets, cautioning against momentum-driven hype. Carlin advocates for focusing on steady, dividend-paying businesses rather than chasing tech trends. He shares insights on building a quality watchlist, the importance of international opportunities, and how to navigate macroeconomic risks while compounding wealth over time.
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INSIGHT

Value Investing Avoids Valuation Risk

  • Sven Carlin argues value investing avoids big losses by prioritizing fundamentals over valuation expansion.
  • He prefers steady cash flows, dividends and low P/E to relying on rising market multiples.
INSIGHT

Valuation Expansion Drove Recent S&P Gains

  • Over half of recent S&P 500 gains came from valuation expansion rather than real earnings growth.
  • A low dividend yield (about 1%) signals elevated market valuation and possible long flat periods.
INSIGHT

Price Determines Investment Attractiveness

  • Great businesses can still be poor buys when price outstrips expected returns.
  • Carlin waits for recessions or reset points to re-evaluate expensive tech names for value.
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