Finding Value in a Growth-Obsessed Market
The market is obsessed with growth stocks. Here's why value investing still works — and how to find the best opportunities.
The Death of Value Investing Has Been Greatly Exaggerated
Every few years, someone writes an obituary for value investing. Growth stocks soar, value stocks lag, and pundits declare that buying cheap stocks is a relic of a bygone era.
They're wrong. Every time.
Value investing hasn't stopped working — it just requires more patience in a world addicted to instant gratification.
What "Value" Actually Means in 2026
Value doesn't mean buying garbage companies because they're cheap. It means finding quality businesses trading below their intrinsic value due to temporary headwinds.
My value criteria:
- P/E below sector average by 20%+
- Free cash flow yield above 5%
- Debt/equity below 1.5
- Revenue growing (even slowly — 3-5% is fine)
- Insider buying in the last 90 days
Three Value Stocks I'm Buying Now
$GOOGL at 22x earnings — the market is pricing in an AI search disruption that isn't happening. YouTube ad revenue is accelerating. Cloud is profitable. This is a $200+ stock.
$JNJ at 14x earnings — the Kenvue spinoff cleaned up the balance sheet. Pipeline is underappreciated. 3.2% dividend yield while you wait.
$CVX at 11x earnings — trading at a discount to historical multiples despite strong free cash flow. $75B buyback program provides a floor. Energy isn't going away.
The Patience Premium
The hardest part of value investing is the waiting. You buy a stock you believe is worth $200, and it trades sideways at $150 for six months. Everyone else is making money in meme stocks. You question everything.
But then the catalyst hits. Earnings surprise. Analyst upgrade. Sector rotation. And suddenly that boring value stock is up 30% in a month.
That's the patience premium. And it's the most reliable edge in all of investing.