 good day fellow investors. Now most of the news is around Apple, Amazon, Tesla and all those kind of stocks. So one might think value investing is dead. Nobody wants to talk about value investing. If you look at the performance that a Russell 1000 value is up 43% while the Russell growth index is up 111%. So that's a huge difference over 10 years. So with such an underperformance it's crazy to call oneself a value investor now. All value investors we should close ourselves in our closets and never come out again. Nevertheless, let's see what value investing is. As Buffett would say the essence of value investing is buying stocks at less than their intrinsic value. So practically you try to buy a dollar for less 80 cents 50 cents as low as you can. This is very difficult because the SAP 500 price to book value is 3.23 so here you're paying 3.23 dollars to buy one dollar. The CAPE ratio was 15 in 2009 now it's 30.34. This shows that fundamentals earnings didn't improve just stock prices went up. To move myself from always looking at earnings here is the price to revenue ratio. It was below one in 2009 and now it's above 2.5. This means that SAP 500 revenues didn't grow while the stock prices increased exponentially. Now what's left for the value investor? Staying cash, look for options around the world what we are doing on this channel or become a growth investor. I wouldn't go for the growth investor because you can see here that at current market valuations the future corrections have always been above 25% and up to 50%. They could probably be even larger when a correction starts. So if you are a value investor I wouldn't go into growth stocks now. The second option I told you can be to waiting cash. Buffett has 99.7 billion in cash on the balance sheet and he's patiently waiting for investment opportunities. So that's a very interesting option and a very smart option to do. So simply wait, do nothing, enjoy your life and wait for opportunities to knock on your door. They will certainly come especially with the huge expected correction that will eventually come when I don't know but it will be there. So if you have cash and everybody's making money on the SAP 500 you obviously underperform. Nevertheless check what said Claremont did from 1991 till 2000. If we start with 50 000 dollars after 10 years with said Claremont it would be 131 000 but the SAP 500 would be almost double at 237 000. So even said Claremont one of the most famous investors now in the world he underperformed the SAP 500 for more than five six years in a row. So that's a huge time to underperform. Many would close down shop, people would take their money away. Nevertheless in the long term he beat the SAP 500 by double. So his returns have been better even with six years of underperformance. So value investing is certainly not that it is that only when people think about usually just before the next crash comes. In the 1990s value investing was that because everybody was investing in crazy internet companies. 1980s we had corporate takeovers, 1970s the Nifty 50 stocks, 1700s the South Sea Company, Tulip Box in the 1600s and all those crazy investments. Eventually they all revert to the mean. When I don't know do I sound crazy when I talk like this? Yes to 99% of the investing population. What can I do? I'm a value investor. Nevertheless value investing is still here. All those fats are dead. Value investing continues and is always the power that leads to the highest returns in the long term. Do you agree with me? Maybe not, maybe well. I'm looking forward to your comments in the comment section. Thank you for watching, click like if you like the content, subscribe if you haven't and I'll see you in the next video.