No. of Recommendations: 10
Value investing is no longer compatible with reality. Please, please prove me wrong. I don't have infinite time to wait.
I guess it depends on how you define value investing. For me, it's "paying a low multiple of pretty-darned-sure future earnings" (several years in the future), whether there are any current earnings or not.
I would include in that category buying Berkshire shares when they are attractively valued, and sitting on your duff. The future won't be as bright as the past, but they still make money faster than they issue shares, so the value of a share can be expected to keep rising at a useful rate. From time to time the stock has clearly traded at less than 10 times average value per share growth 5-10 years out, and I imagine that will remain true.
Jim
