Value investors emphasize on

1.  Real Assets
2.  Current Earnings

They treat prospects for profitable growth with skepticism.

Do not confuse productivity with profitability.  Productivity is not the same as profitability.

[The Internet can be both the friend of productivity and the scourge of profitability.   Airline travelers, for instance, can search more easily for lower fares, more convenient routes, and more generous rewards. Intensified competition almost always lowers prices.]

It is profits that ultimately determine stock prices.

Only firm with unique abilities, companies that enjoy a competitive advantage will reap extraordinary profits.  

 

http://myinvestingnotes.blogspot.com/2013/08/value-investing-approach-outperformed.html