NEW YORK (TheStreet) -- We are the value investors. Considered to be old, wrinkled curmudgeons of a bygone era by many, we have methodologies and beliefs that are often questioned, especially during huge market upswings.
That's when many of us go into hibernation, because we simply have difficulty finding companies that meet our stringent investment criteria. During these times, we are probably doing more selling than buying. Slow afoot and advanced in age, most of us don't even own computers; our calculations are made via the abacus, and all the financial data we need come from Value Line at the local library, since we are too cheap to buy our own subscription.
When we argue that fundamentals still matter, we are told that the old metrics are hogwash. Price-to-earnings ratios, measures of free cash flow and multiples of tangible book value are meaningless in the new paradigm. None of those ancient benchmarks of value applies in the new world of investing.
As long a as a company can increase revenue, the bottom line really doesn't matter; as long as companies can provide the latest convenience, who cares whether they ever generate significant cash flow? As long as the chart continues to look good and investors continue to pile into the stock, what else matters?
If it's cool, if there's a buzz about it, then you must own it. If the online retailer floats the idea of delivering products to customers via drones, then buy some more. When they finally set up a distribution center on the moon, mortgage your house and buy even more.