In the current market conditions can a value investor do anything at all? I mean can he/she buy ?

Here..at the cost of disappointing some of the value investors – the purists..

• markets are at a price when chance of making losses are higher, be prepared
• assess the value of a company in TODAY’s conditions – Graham’s 1972 formula CANNOT hold now
• compare pe and dividend yield to the bond interest rates
• margin for safety is no longer a constant
• it is difficult to see a MOAT for a long period of time
• Google, Amazon are today’s favorites
• GE was a favorite 20 years ago – things change
• winning may be many small winnings, and those ‘big’ winnings may not happen
• if the margin of safety is lesser, RETURNS too will be lesser
• as the margin of safety reduces, the need to shift to newer companies more often
• if you trade more often – you need to worry about trading costs
• if you need to trade more often dividends will not matter
• dividends need to be re-invested to get better value
• reinvestment risk is high – so finding a new opportunity very often is difficult, but not impossible
• growth is tough if you do not take Quality into account

more will follow…