10 Stocks to Buy! Value Investing Quadrant Update 2H 2026

Value Investing with Sven Carlin, Ph.D.•Aug 27, 2026

Summary

Sven presents an updated assessment of the Value Investing Quadrant based on recent Q2 results and market trends. Sven emphasizes that in the most expensive market in history, finding assets with high reward and low risk is increasingly difficult. Sven utilizes a quadrant system where the x-axis represents potential reward and the y-axis represents risk, aiming to find stocks positioned for maximum value. Sven notes that several previously attractive stocks have moved into riskier territory due to significant price increases over the past year.

Sven highlights ASML as a business that has moved from a solid buy to a high-risk price point. Sven explains that the P/E ratio has expanded from the 20s to 57, which Sven considers bubble territory for a long-term investor. Sven calculates that for ASML to double from here, its market cap would need to reach 1.2 trillion, a feat that would require maintaining an unsustainably high valuation.

Sven discusses Meta Platforms with a more positive outlook, suggesting it is fairly priced for a 10% to 11% return. Sven states that if Meta's investments in AI yield faster growth, the stock could potentially offer much higher returns. Sven views Meta as a better value proposition compared to other mega-cap tech stocks, provided the AI narrative holds.

Sven points to the China Internet ETF (KWEB) as an area of significant hidden potential after 13 years of stagnant stock prices. Sven argues that while the prices have done nothing, the underlying businesses have scaled and grown significantly. Sven is pushing this asset into a 10% return category within his diversified portfolio strategy.

Sven evaluates Berkshire Hathaway and concludes that while it is a safe long-term business, he would personally sell it at current levels. Sven argues that the current stock price reflects all the favorable fundamentals, leaving a projected long-term return of only about 6%. Sven views it as a low-risk asset similar to US Treasuries but notes it is currently fully valued.

Mentioned Stocks

AMZN

Sentiment: HOLDAction: RECOMMENDED

Reasoning: Sven notes that Amazon is fairly priced for an 8% return but does not meet his 15% threshold for a 'great buy'. Sven is waiting for a recession or a significant market correction to add the stock at a better entry point.

Loading chart...