Value Investing Has Finally Died

**SPEAKER_1** (0:00)
Hey babes, it's Paris Hilton. So I was checking my points balance in the Hilton Honors app the other day, and yeah, I've got about a billion, which feels excessive, even for me. Just kidding, you can never have too many Hilton Honors points. And I wanna do something iconic this summer, so I'm giving away all my Paris points. Just find somewhere you've always wanted to stay, then go to my socials or Hilton's and tell me about it. Just make sure you're a Hilton Honors member, and I might be sending you Paris points, because when you want points that make your summer even hotter, it matters where you stay.

**SPEAKER_2** (0:30)
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**Joseph Carlson** (1:00)
In today's episode, I need to start things off with an apology. Now, I make it a rule on my channel to never apologize to trolls and critics and different people that just want to tear you down. That's never been something I'll do and I'll do in the future. But in this case, I feel it's necessary to apologize to these people.
Now, I don't even know their name. These are just TikTok, a TikTok couple, and they made this video about their finance and investing that went viral. Let's go ahead and just take a listen to it.

**SPEAKER_4** (1:29)
I know trading sounds intimidating. Here's my strategy in a nutshell. I see a stock going up and I buy it, and I just watch it until it stops going up, and then I sell it, and I do that over and over, and it pays for our whole lifestyle.

**Joseph Carlson** (1:41)
They go on to explain that this is how they make all their money, and it's just such an easy thing to do.

**SPEAKER_4** (1:47)
If you're wondering how much you can make doing this, in this month, I turned about 400 into 14,000, and in this month, I turned less than 1,000 into 20,000.

**SPEAKER_5** (1:56)
And honestly, my favorite part about this isn't even the amount of money you can make, but just the fact that we don't have to go to a nine-to-five job.

**SPEAKER_4** (2:02)
Yeah, we can focus on things that we actually enjoy doing.

**Joseph Carlson** (2:04)
Now, this video contains it all. It has dialogue with the couple, each of them having their little parts. They share how they're making easy money, seemingly just buying a stock as it goes up, selling it when it stops going up. They explain how it funds their entire lifestyle, and of course they have the kicker that you can do it from home at ease and have your own schedule.
It almost seems too good to be true.
And when this video went viral, I of course gladly took the chance to mock it, and I mocked both of them for selling a dream, something that was unrealistic. All of it seemed worthy of mockery, and that is exactly what I did. I made fun of them in an episode in a reaction video.
Now today, I'm apologizing to both of them because apparently the strategy that they've described is the future of investing. They were just years ahead of their time, pioneering this strategy and sharing it across social media for more awareness. This strategy of simply looking at whatever stock is going up and buying it is now mainstream. It's everywhere. It's the dominant strategy in 2026 So dominant that even respected fund managers, ones that have written books, ones that value investors have worshipped from time to time are now embracing the TikTok strategy. The TikTok strategy of this couple, again, I don't know the name of them. That strategy, of course, is momentum investing. And in many cases, momentum investing is born out of desperation. And right now, stock pickers are becoming desperate. When we look at some news here, I just will highlight a couple things that I'm seeing across the market. One of them is this article from Bloomberg saying that the AI rally has crushed stock pickers with just one in four beating the market.
So anyone that's investing outside of the index, according to Bloomberg, 75% of you are not outperforming the market in 2026 And this is much worse than usual. If we look at the data compared to the historical norms, this is where we're at. So historically, around 40 to 50, in some cases, 60% of fund managers outperform the market. It's not bad. At least it's a coin flip or better. Many of them are actually creating alpha and outperforming. Many of them are underperforming as well. And what we see happening in 2026 is the performance continually going down against the S&P 500