Lessons, Tutorials, and Resources
Value investing, in its simplest terms, means buying securities at a low price and selling them at a higher price. Value investing is defined as a systematic process of purchasing high-quality stocks at an undervalued market price, quantified by intrinsic value and justified through financial analysis, then selling the stock promptly upon market price recovery. You can learn about value investing on this site.
Learn about value investing in this section of valueinvestingnow.com. The education program, lessons, tutorials, and resources are free! There are over 120 lessons, dozens of tutorials, and multiple resources at your disposal to educate you about value investing. The author of this program has a proven history of success with value investing; all of it documented on this website.
You may also want to join the Value Investing Club. Most site visitors are interested in access to the activity and models of the Value Investment Fund. Each month, you get regular e-mails with information that provides recent activity and directives related to the buying and selling of the pools’ potential opportunities. In addition, sometimes alerts are sent when opportunities exist with buys and sells of certain securities. In effect, you can mimic the performance of this site’s Value Investment Fund. The particular program venue provides the following benefits:
- Access to at least six pools of industries and their corresponding potential corporate information (currently 46 potential investments in the aggregate);
- Each pool has its own decision matrix for buy and sell points;
- Documented intrinsic values for the respective corporations;
- Updated buy/sell points as companies report their financial achievements;
- Alerts as securities get close to their buy and sell points;
- Regular updates on the Value Investment Fund’s financial performance;
- Access to a wealth of knowledge about value investing.
Although not required, it is encouraged for the subscriber to learn about value investing. This is the second aspect of this program. This section is free to all visitors.
Lessons, Tutorials, and Resources
The second program is oriented toward educating the member about value investing. There are three phases to this part of the program. The first phase consists of lessons 1 through 18 and introduces the concepts and principles of value investing. This Phase I – Four Core Principles of the program teaches about the one core tenet of value investing and the four principles that make value investing so successful. This is a membership site, and as such, you must register to join. Yes, there is a fee. The program is explained on the Membership page.
The second phase consists of 80 additional lessons, Lessons 19 – 98. These lessons go into deep detail about the respective individual steps to create a pool of similar investments and design the respective buy/sell model used with value investing. Issues covered in great detail include:
- Understanding and interpreting financial statements;
- Calculating intrinsic value;
- Evaluating financial status and potential returns; AND
- Construction of a buy/sell model for the pool and its members.
Included in this phase are spreadsheets, formulas, graphs, and resources for the value investor. An investment pool creation (hotels) is illustrated all the way through this batch of lessons. Phase II – Financial Analysis
The third phase is referred to as the sophistication phase. Here, the author explores additional tools a value investor uses to improve their overall return on investment and reduce risk. Topics covered include how to create counterpositions that guarantee profitability; how to read the notes sections of annual reports to gain an advantage over institutional investors; when to dispose of underperforming investments; and finally, learn how to utilize the formulas of value investing to leverage your return without any additional risk. Phase III – Sophisticated Investing
In this phase of the value investing program, ‘Sophistication’, the value investor is taught certain techniques of investing that further reduce risk and increase overall marginal return by two to three percent per year. Techniques taught include:
- Utilizing PUTs to add cash to the Fund;
- How arbitrage rewards those that pay attention to details (simultaneous buying and selling of a security);
- Preferred stock investing;
- How hedging works;
- Owning convertible bonds;
- Intangible asset valuations;
- Leveraging the portfolio via margin trading;
- And more.
Unlike traditional practices with the above techniques, value investors do their homework and adhere to the core tenet of buying low and selling high. This applies to the above techniques, too. Act on Knowledge.