Oftentimes during bull markets that extend for a long period of time, value investors start questioning their own strategies. Is value investing dead? Since growth tends to outperform during that period, some investors throw out of the window the concepts of Benjamin Graham. Although it is understandable that you should question your own beliefs and strategies. Having a period of underperformance does not translate into a bad thing.
Investing in the 21st century
The world is so much different today than it was back when Benjamin Graham first defined its investment strategy. There are so many things happening at the same time, that it becomes difficult to focus. Another trend we have witnessed, also aided by this long bull market is the resurfacing of many of the so-called financial gurus. This has been present not only in the 21st century but across centuries. The difference now is that these people just need to grab your attention for a few minutes, and they are already making money. The world of online advertisement has allowed countless gurus, and especially in the financial sphere to rise and delude most of their followers.
With the rise of cryptocurrency, and over speculative stocks. Some of the more safe and boring investment strategies like value investing have been completely neglected.
How to avoid being influenced
It is important to create a shell and protect yourself from all the noise and investment tips that come from everywhere online. Focusing on your own process and strategy should give you the best results. However, you can always hear people that you value highly, and research their tips and ideas. Nothing wrong with that, but what we see in the markets today, is a blind financial guru leading the deaf. This is a perfect setup for something to go wrong in a big way. Most of these investors are not at all aware of the present conditions of the market. They just simply follow what this guru is telling them to do, without questioning their intentions and ideas. You should try to think for yourself and make decisions that only you can answer for.
