Stocks like Alibaba and PayPal are classic value stocks with price-to-earnings ratios in the 10 to 15 times range. They are priced significantly lower than the market average and their peers but haven't moved much in the last five years. On the other hand, stocks like Nvidia are boasting almost 100 times the price-to-earnings ratio, and investors are still pouring money into it.
Examples like these have led to the conclusion that the value investing methodology isn't working anymore.
But there is one man who has beaten the odds! David Einhorn, the famous hedge fund manager and founder of Greenlight Capital, is a value investor who has managed to beat the market for quite some time. With roughly 13% annualized return in the last decade, David's fund has beaten the S&P 500's annualized 9% return since its inception 28 years ago.
Today, I break down David Einhorn's market-beating VALUE investing method and give you two stock ideas based on David Einhorn's methodology that you may consider researching and buying now.
Let's talk about them!
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