You’ve made a fortune from Growth / Quality funds / S&P500 (mostly Growth)


But now very respected investors, like Jeremy Grantham are using the word, “bubble”

And he has a solid history in timing bursting bubbles

Plus the risk of the Dems raising taxes – the Tech giants have an avg tax rate of 15%.

So you’re contemplating taking profits & switching into Value funds / an ETF.

The largest Value ETFs are Vanguard Value ($64bn) & Russell 1000 Value ($44bn)

I looked at their largest common holdings:

– Berkshire H – but 25% is Apple (growth)
– J&J (20x fwd),
– JP Morgan (13x, 2x NAV),
– Procter & Gamble (23x fwd)
– Disney

How is Disney a Value stock today?

It’s loss-making, on 6x sales & 37x 2022 earnings when analysts think we’ll have money for theme parks, movies & cruises

Debt has ballooned & their $500m Q interest bill is now 3x 2 yrs ago

It’s on 25x their highest historic earnings when they enjoyed full parks & ships + 6 huge movies incl Avengers & Star Wars.

But now the family gets it all on Disney+ for $6.99 a month – less than 1 movie ticket.

It’s certainly not Growth

Perhaps that’s the problem – Not all Non-Growth companies are Value

but it seems the Index providers & ETFs have to allocate them somewhere

Make sure you know what you’re buying