This is Why I Stopped Focusing on Valuation

In this monologue, Matt Derron discusses his evolving perspective on valuation in stock investing. He explains why he has shifted away from prioritizing valuation, particularly in high-growth stocks like Cloudflare, Snowflake, and Palantir. Matt argues that traditional value investing may not be as predictive as it once was due to factors like the rise of 401(k)s and passive investing, which create price-insensitive market forces, the democratization of information via the internet, and the increase in algorithmic trading. He suggests focusing instead on business growth, cash flow, secular trends, and technical entry points, while acknowledging the differing views of value investors and advocating for an investment approach that aligns with individual goals.