David Einhorn Says the Market is Broken | We Debate Whether He is Right
In a recent appearance on the Masters in Business podcast, David Einhorn claimed that the stock market is broken. He discussed how he has adjusted his strategy to reflect his belief that the market doesn't seem to care about fundamentals anymore. In this episode, we take an in depth look at this idea and the facts both supporting and refuting it. We discuss how the rise of passive investing has changed the market, how that impacts fundamental investing and some potential changes fundamental investors can make to deal with the changing market.
00:00 - Intro
02:57 - How the rise of passive investing has impacted the market
08:00 - How a rational individual decision can lead to collective risk
09:23 - The challenge of beating the S&P 500
12:11 - How David Einhorn has changed his strategy
16:31 - The voting machine vs. the weighing machine
19:12 - Shareholder yield and returning capital to shareholders
21:14 - The importance of capital allocation
24:49 - Migration and value investing
30:13 - Less active managers equals more challenging market?
32:38 - Do fundamental investors need to lengthen their time frame?
38:06 - Does the rise of the largest companies requires fundamental investing to mitigate risk
45:24 - Counterarguments to Einhorn's case
SEE LATEST EPISODES
www.validea.com/financial-pla...
FIND OUT MORE ABOUT SUNPOINTE INVESTMENTS
sunpointeinvestments.com/
FIND OUT MORE ABOUT VALIDEA CAPITAL
www.valideacapital.com
FOLLOW MATT
Twitter: / cultishcreative
LinkedIn: / matt-zeigler-a58a0a60
FOLLOW JACK
Twitter: / practicalquant
LinkedIn: / jack-forehand-8015094
FOLLOW JUSTIN
Twitter: / jjcarbonneau
LinkedIn: / jcarbonneau
Пікірлер: 8
Thought about this a lot (while sipping whiskey and playing rocket league since I'm not a pro 😆). I came to the conclusion that Einhorn/Green 's investors are not very patient. Stay the course!
Finkle is Einhorn. Hahahahhaa
At 1:43 "He's much more deep in the weeds". Just as long as he's not watering them while pulling the flowers.
Is this a rotation back to cigar butt investing
What I love is that the market is becoming, or has been for some time, something completely different then it was supposed to be....high frequency trading algorithms running stock issues on historical patterns and statistical relationships as casinos for a 51% edge. Getting caught up on Passive vs. Active....you guys are missing the big hidden picture. Flows? How much dark pool data are you following?
Evaluating if something works every five years would have had you not be invested in market beta and value historically during periods that they did the best. I understand the temptation to do it but 5 years is just not long enough.
Hence the bet that Warren Buffett made in 2007, with Protege Partners, that the S&P500 would beat a hedge fund over 10 years
@danmilligan5132
3 ай бұрын
Yup No fees No emotions No selling No buying And 2 and 20 fees? How in the world could they beat the index?