Warren Buffett, often called the Oracle of Omaha, is one of the most successful investors of all time. He began his path to wealth at a newborn age, using his newspaper earnings to buy stocks. His early fascination with the stock market turned into a lifelong passion, helping his company, Berkshire Hathawaybe very successful.

Over the years, he built it into a conglomerate with a diversified portfolio of businesses, including insurance, manufacturing and retail. His investing success has made him one of the richest men in the world, but he is also admired for his philanthropy and basic lifestyle.

However, not everyone agrees with his investing style. Recently, its value investing strategy has been questioned. in July Forbes co-worker Jim Osman lamented “availability of easy financial data” it has “caused market saturation“.

He believes that as a result, few stocks remain undiscovered or underpriced, limiting the effectiveness of the value model.

Value investing involves selecting undervalued companies with solid fundamentals and long-term potential. The philosophy, often outlined in Buffett’s annual letters to Berkshire Hathaway shareholders, emphasizes the importance of patience, discipline and a long-term perspective.

While these basic principles remain valid, Osman believes that some adaptation could be beneficial. I think he’s right in some cases.

Changing times

As an example, consider the recently sold shares of Berkshire Hathaway. Earlier this year, the company landed 63.3 million units The most crucial global one (NASDAQ: PARA) stock at a loss. The company’s shares then fell by almost 70%.

Buffett took full responsibility for this loss, but the question is: why did his classic methods fail in today’s world?

In recent years, Paramount has faced significant challenges that have led to falling prices. The main factors contributing to this downturn are the rise of streaming giants such as Netflix AND Disney+. As consumers switch to streaming services, the classic cable networks that Paramount relies on are seeing a decline in viewership.

I believe that much of this behavioral change is due to changes in the way people make choices. Where we previously relied on advice from professionals, today customer feedback controls the narrative. Previously, we talked to a travel agent, read Roger Ebert’s reviews, or consulted a stockbroker. Now we check Travel advisorRotten Tomatoes i Trust the pilot.

A case for recovery

While the Berkshire sale hurt Paramount, I think the stock can still recover. To do this, it must adapt to changing times and implement effective strategies to regain market share. In particular, a powerful brand and extensive content library can give it a competitive advantage. If he can successfully launch the on-demand service Paramount+ to capture a larger share of the streaming market, he may be able to achieve this.

Looking at the balance sheet, it has $14 billion in debt and $17 billion in equity. The same is true for Netflix, which has grown by almost 50% this year. However, it has less cash and less interest coverage. Earnings are forecast to grow 77% annually, and based on future cash flow estimates, the stock is valued at 75% below fair value.

I wouldn’t say it’s a stock I want to get into right now, but its financial situation is decent and could recover with the right strategy. Who knows, maybe one day Buffett will even regret selling.