'White-haired Stock God' Serenity: AI Creates Massive Valuation Mismatches, Value Investment Logic is Changing

Odaily Planet Daily News: 'White-haired Stock God' Serenity posted on the X platform, stating that traditional value investing seems to have entered a 'hibernation period.' In the past, investors would look for companies with a price-to-earnings ratio of 10 to 12 times, slow growth, but capable of enhancing value through cash flow buybacks and dividends. Nowadays, there are companies in the market with a price-to-earnings ratio as low as 1.8 times and year-over-year revenue growth of 605.24%, where the main discussion for investors revolves around the duration of growth. Additionally, Japan's Sumitomo has a price-to-earnings ratio of only 16.2 times, yet it holds numerous long-term agreements with hyperscale cloud service providers in AI-related businesses ranging from optical fibers to lasers. Serenity believes that AI has created greater valuation mismatches in the medium term, gradually shifting 'value investing' toward high-growth 'deep value' companies.