Active investing is dead. Well, at least if you read the headlines of most financial news sites. Armed with data to back that the market returns 10% per year over the long-term, investing in a low-cost S&P index certainly seems like a no-brainer.
In fact, according to CNBC, 80% of the stock market is on "auto-pilot", i.e. using either passive management or algorithmic investing. The "buy everything" strategy can be seen everywhere and is pitched to naive investors as a safe way to compound money.
Value investing ideas and security analysis
Saturday, January 18, 2020
Thursday, January 2, 2020
Peabody Energy - Extremely Cheap At The Current Valuation
After a decline in share price of around 70% this year, Peabody Energy is trading as cheaply as if it were on the verge of bankruptcy. Investors will be rewarded greatly by buying into Peabody, as the depressed share price will allow an incredible return of capital to shareholders. The company is nowhere near insolvency, so Peabody is a strong buy on the basis of discount to fair value.
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