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44 sats \ 7 replies \ @grayruby 16 Jan \ parent \ on: Benjamin Graham and How to Invest Like a Legend (TDE, Joakim Book) BooksAndArticles
My argument is it is irrelevant when passive and liquidity is what drives the bus. Deep value has massively underperformed for over two decades.
I get your argument and it is statistically not wrong. I'm saying it won't help you if you're analyzing a company that is not listed.
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I'm not so sure about that. They're not hermetically sealed off, two separate systems. Private equity gets spillovers from public equity (particularly venture cap or bond financing), so prices there too get distorted by the money.
So no, I'm leaning that this objection probably doesn't hold.
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Are you saying people don't need to have the ability to perform financial analysis on a small chain of plumbing businesses because why again? Perhaps a degree in Finance won't let me see your arguments.
If you're not analyzing cash flows what are you even doing? 🤣
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No, I'm saying they have the same problem as public markets.
Graham's criteria or approach won't work in stock market anymore (if they ever did) precisely because of monetary premium and the liquidity flows getting things out of wack.
Via VC and private equity investing, that money spills over into the plumbing business etc as well.
Everything tainted.
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This is true. But I find one has to constantly adapt - looking for the missed, local opportunity.
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