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Modern finance thread
To highlight its silliness
In Haiku and graphs 2/4

EMH says no alpha
But Intrinsic Value adds
Alpha day by day

1/ Little v “value” vs Valuation Investing

Little v “value” investing focuses on buying cheap stocks Example: High B/P

Valuation investing focuses on buying undervalued, stocks trading below intrinsic value

Let’s explore the differences

#ValueInvesting
#ValuationDriven

🧵👇 2/ Little v “value” investing buys accounting variables such as book equity cheap relative to a stock’s price

But:

Value is monetary worth

Cheap is relatively low in cost

Little v “value” is Cheapness investing, not true Value investing