The Financial Economics: Turning $1M Into $1B+

Investors have plenty of strategies to turn to for their investment returns. Over the past few years, momentum investing, particularly in big-cap tech stocks has been a winner. That trend has sharply reversed in 2025.

Other strategies may take a more slow-and-steady approach. But over time, those strategies can allow investors to continually build on their returns. If market conditions are less bullish overall, these approaches may be more successful.

One such approach is value investing. Value can be a subjective term. But overall it means to take a long-term approach to buying stocks. And treating a stock like the fraction of a company that it is.

That means being mindful of metrics such as earnings, cash flow, and profit margins.

Some value investors also take a focused approach. Rather than buy the market as a whole, they may invest most of their money in their top 10 ideas.

This can mean a higher portfolio concentration. But for value investments that can pay off over time, some short-term pain will turn to long-term results.

Value investors also have the advantage of time. They don’t need the market to move a certain way within a certain amount of time. They can wait, and often get paid to do so with dividends, while valuations shift higher.

In short, taking a value approach can greatly compound returns over time.

To watch the full video, click here.