u/Able_Answer5016 ·
Reddit — r/ValueInvesting
· May 07, 2026 at 17:37
· ⬆ 44 pts
· 💬 63 comments
| View on Reddit ↗
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Summary
The author argues that traditional value investing is obsolete, citing the dominance of mega-cap tech stocks and Buffett’s shift toward growth orientation.
He recommends retail investors switch to an index-dominated portfolio, treating prior value‑investing efforts as a sunk‑cost knowledge fee.
The post is speculative opinion/“noise” – it lacks rigorous data, conflates value styles, and relies on recency bias.
Score44
Comments63
Upvote %69%
▶ Full Post Text
Traditional Value investing is dead.
Go read what is traditional vs new age value growth investing or whatsoever without a title .
Since Charlie Munger’s influence took hold, Warren Buffett has shifted to a strategy that is effectively 80% growth and 20% value.
Even the pre-tech era value gurus, such as Joel Greenblatt and Seth Klarman, have transitioned into "index fund leeches."
The top 100 stocks in the S&P 500 now hold a 75% weightage, making it essentially a QQQ (Nasdaq) holding.
Consequently, the index benchmark for this era is tech.
Whether it is a value stock with no growth or a high-quality non-tech stock with 10–15% revenue growth, it is difficult to compete with "moatless" compounders growing revenue at 20%.
Competing against the Magnificent Seven, which combine massive moats with high compounding, is even harder.
Even Berkshire Hathaway’s insurance structure, which provides a float that effectively acts as 30% leverage, is failing to beat the index.
A retail investor without access to such a float must discount their maximum talent capacity by 30%.
My recommendation: Switch to an index-dominated portfolio and view your past efforts in value investing as a "sunk cost knowledge fee. Continue value investing on minority . It’s always cool to discuss none performing asset stock deeply researched .
The post states that the top 100 S&P 500 stocks hold 75% weight and that the index benchmark is effectively tech; value stocks cannot compete with compounders growing 20%+. The author explicitly recommends switching to an index-dominated portfolio, implying that passive exposure to the S&P 500 (SPY) is the optimal strategy for retail investors. A long position in SPY aligns with the author’s conclusion that active value picking is futile and that riding the broad market (driven by tech) is the superior approach. The thesis relies on a short‑term extrapolation of tech outperformance; mean reversion or a rotation to value could invalidate the recommendation. Concentration risk in the top holdings remains.
This Reddit post, published May 07, 2026,
features u/Able_Answer5016
discussing SPY.
1 trade idea extracted by AI with direction and confidence scoring.