Stocks That GO UP vs. Real Investing!

Value Investing with Sven Carlin, Ph.D.•Jul 8, 2026

Summary

Sven presents a philosophy centered on value investing, contrasting it with the speculative behavior of chasing assets like Bitcoin or high-momentum stocks. Sven emphasizes that the primary objective of an investor should be to receive rewards from the business's fundamental operations and value creation, rather than relying solely on capital appreciation. Sven critiques the current market environment where investors feel like geniuses simply because prices are rising, suggesting this ignores the underlying health of the business.

Alibaba (BABA): Sven uses Alibaba as a primary example of a business that should be evaluated based on its value creation rather than just its stock price movements. Sven acknowledges that while Alibaba's stock price might fluctuate in the short term, the goal of true investing is to be rewarded by the underlying business performance. Sven highlights that focusing on the business rewards allows an investor to remain calm regardless of whether the market goes up or down.

S&P 500 (SPY): Sven criticizes the current state of the S&P 500, noting that its dividend yield has dropped to a mere 1%. Sven argues that although the index price continues to rise, the actual value creation for shareholders is declining in relative terms. Sven characterizes the current attraction to the S&P 500 as an example of chasing price increases rather than fundamental business investing.

Mentioned Stocks

BABA

Sentiment: BUYAction: RECOMMENDED

Reasoning: Sven discusses Alibaba as a core example of value investing where the business's ability to reward the owner is more important than short-term price volatility. Sven suggests that even if the stock price is unpredictable, the focus remains on the value the business creates for its owners. Sven views this business-centric ownership as the correct way to approach the stock.

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SPY

Sentiment: SELL

Reasoning: Sven expresses a pessimistic view of the S&P 500's current value proposition, noting that the dividend yield is only 1%. Sven argues that while the price has been going up, the actual value creation is decreasing. Sven classifies the current interest in the index as 'chasing' rather than true value-based investing.

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