Value Investing Program – Phase III (Sophisticated Investing)

Sophisticated Investing

“Simplicity is the ultimate sophistication.” – Leonardo da Vinci

In this phase of the value investing program, the value investor is taught certain aspects of investing that further reduces risk and increases overall marginal return 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.

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