Why does value investing still exist in the age of algorithmic trading?
u/lito777 ·
Reddit — r/ValueInvesting
· March 25, 2026 at 20:33
· ⬆ 16 pts
· 💬 37 comments
| View on Reddit ↗
AI Summary
Summary
The post questions the continued relevance/value investing's core premise (market mispricing) in an era dominated by fast, data-rich algorithmic trading.
The author's thesis is that algorithmic trading should theoretically eliminate pricing inefficiencies before human value investors can act, making the strategy obsolete.
Quality assessment: Speculation. It's a conceptual/market structure discussion with no company-specific research or data.
Score16
Comments37
Upvote %69%
▶ Full Post Text
I've been trying to wrap my head around this and would love some perspectives from people who understand markets better than I do.
The classic premise of value investing is that the market misprices stocks — that you can find companies trading below their intrinsic value and profit when the market eventually "corrects" itself. That made a lot of sense in Graham's era, when information was scarce and humans were slow.
But today? The market is largely run by algorithms and quant funds operating at millisecond speeds with access to infinite info, credit card transaction data, sentiment analysis, and basically every public signal imaginable. If a stock is undervalued, wouldn't a bot have already detected and corrected that inefficiency before any human investor could act on it?