"White-Haired Stock Guru" Serenity: AI Is Creating Massive Valuation Mispricing, and the Logic of Value Investing Is Changing

Odaily reports that "White-Haired Stock Guru" Serenity posted on X platform, stating that traditional value investing appears to have entered a "hibernation period." In the past, investors would look for companies with P/E ratios of 10 to 12 times, slow growth but able to compound value through cash flow buybacks and dividends. Now the market has even seen companies with a P/E ratio of just 1.8 times and revenue growing 605.24% year-over-year, and the main thing investors need to discuss is how long the growth can last. In addition, Sumitomo of Japan has a P/E ratio of only 16.2 times, but it has a large number of long-term agreements with hyperscale cloud service providers in its AI-related businesses, from optical fiber to lasers.

Serenity believes that AI has created a greater valuation mispricing in the medium term, gradually shifting "value investing" toward high-growth "deep value" companies.