Criticisms of Value Investing

On paper, the logic of value investing may appear obvious: buy stocks at a bargain price and sell them after the price has gone up. However investment decisions are not that straightforward, an investor is subject to an ever-changing environment where logic can be overshadowed by emotion.

It takes a great deal of conviction to stick to value-investment disciplines, especially when a company’s stock price declines after you purchase its shares.

This is why value investor’s trade long-term (3-5 years).

Value investing principles are therefore mostly unappealing unless the investor has large bucks.