Advances in Economics, Management and Political Sciences

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Proceedings of the 3rd International Conference on Business and Policy Studies

Series Vol. 71 , 18 January 2024


Open Access | Article

An Analysis of Value Investing in Different Industries

Rui Wen * 1
1 Business School, University of New South Wales, Sydney, NSW 2052, Australia

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 71, 317-322
Published 18 January 2024. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Rui Wen. An Analysis of Value Investing in Different Industries. AEMPS (2024) Vol. 71: 317-322. DOI: 10.54254/2754-1169/71/20241608.

Abstract

This paper navigates through diverse sectors, starting with real estate, where value investing demands a nuanced understanding of unique challenges, such as low liquidity and strategic leverage use. The technology sector, with its disruptive innovations, challenges traditional investment paradigms. Examples like Amazon reshaping retail underscore how disruptive technologies erode value in traditional sectors. In healthcare, the impact of clinical trial results on stock performance is dissected using Moderna and Pfizer as case studies, highlighting the sector's asymmetrical response to positive and negative outcomes. This paper concludes by addressing the limitations of value investing, emphasizing challenges related to time horizon, industry dynamism, and market efficiency assumptions. This paper advocates for a balanced approach combining historical wisdom with adaptability in a dynamic market landscape. Acknowledging the limitations, investors are encouraged to embrace a forward-looking mindset, recognizing the evolving nature of industries. The resilience of value investing lies in its storied past and its ability to adapt, offering a guiding philosophy for modern investors navigating multifaceted financial terrains.

Keywords

Value Investing, Real Estate, Technology, Healthcare

References

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2. Piasecka, A. (2017). A characterization of the real estate market. Central and Eastern European Journal of Management and Economics, 5(4), 169–180.

3. McDonald, J. (2007). Optimal Leverage in Real Estate Investment with Mezzanine Lending. Journal of Real Estate Portfolio Management, 13(1), 1–6.

4. Pavlov, A. D., Steiner, E., & Wachter, S. M. (2014). Real Estate Investment and Leverage: In Good Times and in Bad. SSRN Electronic Journal.

5. Tur-Sinai, A., Fleishman, L., & Romanov, D. (2020). The accuracy of self-reported dwelling valuation. Journal of Housing Economics, 48, 101660.

6. Lyytinen, K., & Rose, G. M. (2003). The disruptive nature of information technology innovations: the case of internet computing in systems development organizations. Management Information Systems Quarterly, 27(4), 557.

7. Siddhpura, A., Indumathi, & Siddhpura, M. (2020). Current state of research in application of disruptive technologies in engineering education. Procedia Computer Science, 172, 494–501.

8. Agrawal, T. J., Sehgal, S., & Agrawal, R. (2020). Disruptive innovations, fundamental strength and stock winners: Implications for stock index revisions. Vision, 24(3), 356–370.

9. Singh, M., Rocafort, R., Cai, C., Siah, K. W., & Lo, A. W. (2022). The reaction of sponsor stock prices to clinical trial outcomes: An event study analysis. Plos One, 17(9), e0272851.

10. Daily, I. B. (2023). Is Pfizer Stock A Sell After Its Covid Sales “All But Disappeared”? Investor’s Business Daily. https://www.investors.com/news/technology/pfizer-stock-buy-now

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 3rd International Conference on Business and Policy Studies
ISBN (Print)
978-1-83558-281-7
ISBN (Online)
978-1-83558-282-4
Published Date
18 January 2024
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/71/20241608
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated