When Value Investing Won't Help You

For many investors, May is value investing month. It's when the cheapskates come together to celebrate all things Warren Buffett and Charlie Munger at the Berkshire Hathaway annual meeting in Omaha.

And yet history shows that sometimes the best value stocks are expensive at purchase. That's certainly been true of Apple (NASDAQ: AAPL  ) in years past and Amazon.com (NASDAQ: AMZN  ) for, well, ever. Both stocks have shown investors generous returns despite having traded for more than 100 times earnings at various points in their history, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following video.

Don't obsess over strict value investing principles. Instead, follow Buffett's own advice to avoid spending time valuing declining businesses. Look for rich opportunities led by healthy, growing enterprises such as Apple and Netflix (NASDAQ: NFLX  ) , which Tim says are his top two holdings.

Do you adhere to strict value investing principles? Please watch the video to get Tim's full take, and then talk about your top two holdings in the comments box below.

Stream on
For further analysis of how Netflix is changing entertainment, tune into our 
newest premium research report, in which we take you inside Netflix's entertainment empire and tell you what the streaming sensation is really worth, and whether the stock deserves a place in your portfolio. Access your report now by clicking here.


Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2427237, ~/Articles/ArticleHandler.aspx, 10/1/2014 8:29:45 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement