Value Investing Program

Value Investing

Value investing is defined as a systematic process of buying high quality stock at an undervalued market price quantified by intrinsic value and justified via financial analysis; then selling the stock in a timely manner upon market price recovery.

The primary tenet of value investing is to to buy low and sell high. If done properly, average annual returns on an investment fund will exceed 30%. Value investing requires the investor spend some time creating a decision matrix for each pool of similar companies. This model is then implemented and updated on an annual basis. Value investing is in effect the exact opposite of day trading. Value investing takes advantage of time and this reduces the overall stress for a fund manager. 

Value InvestingValue investing relies on four principles to ensure success.

The first is risk reduction by only working with high quality stocks; in general, work with the top 2,000 companies worldwide. Absolutely avoid penny and small cap financial instruments. Top companies reduce risk significantly due to their stability of earnings. Stability of earnings is the most important value derivative in business.

Secondly, value investors rely on intrinsic value to set the buy/sell range of market price for the respective stock. Intrinsic value is the core worth of a company. There are several different intrinsic valuation formulas and their application is a function of the company’s business model. There is no single universal intrinsic valuation formula.

In addition, value investors use financial analytics to validate operational and financial performance. This analysis allows the value investor to determine the most likely market price recovery point and its associated time frame to recover.

Finally, patience is required. Time is on the value investor’s side. Look at these results.

 

Value Investing – Value Investment Club

Join the value investing club and learn about value investing and how you can easily acquire similar results with your investment fund. Upon joining, you’ll receive the book Value Investing with Business Ratios, a reference guide used with all the decision models you build. Each week, you receive an e-mail with a full update on the pools. Follow along as the Investment Fund grows. Start investing with confidence from what you learn. Create your own fund and over time, accumulate wealth.

Joining entitles you to the following:

  • Lessons about value investing and the principles involved, Phase I of the program;
  • Free webinars from the author following up the lessons;
  • Charts, graphs and resources to use when you create your own pool, Phase II of the program;
  • Access to the existing pools and their respective data models along with buy/sell triggers, Investment Fund Pools;
  • Follow along with the investment fund and its monthly updates;
  • White papers addressing financial principles and proper interpretation methods, Phase III of the program; AND
  • Some simple good advice.

My Personal Guarantee:
This program isn’t for everyone. If you find this program too intense or not what you expected, TELL ME. Just be honest with me and I’ll refund your membership fee. This promise is good for the first year of the program. I’ve had folks tell me it is too much time commitment or ‘the financial analysis is more than I can grasp’. It’s OK, I understand, everyone starts out with good intentions and then the realization sets in that security analysis is really detailed or takes more work than anticipated. I’m fortunate, I have a formal education in accounting; and also, I enjoy this deep analysis of companies and pools of investments. Therefore, I don’t want you to walk away thinking you got slighted by having to pay a membership fee for a program that just wasn’t right for you. Send me an email; I’ll refund your membership fee within about two days (I’m not at my desk 24/7). 

When you join the Value Investing Club, you receive two separate programs. The first, the one most subscribers are interested in, is access to the activity and models of the Value Investment Fund. Each week, you get regular e-mails which provide recent activity and directives related to buys and sells 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 members 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;
  • Weekly emails updating members about possible opportunities;
  • 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.

The second program is oriented around 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 introduce 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 individual 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 counter positions 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

Value Investment Club

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    • Sold Wells Fargo Position

      Sold Wells Fargo Position
      Sold Wells Fargo Position Yesterday at 10:17 AM, the Value Investment Fund sold its position in Wells Fargo in preparation for two sets of PUTs that the Fund will have to comply with the terms of the PUT contracts. Earlier this year, the Value Investment Fund sold two separate batches of PUTs in Essex Property Trust. One ...
    • Purchased 100 Shares of Essex Property Trust, Inc.

      Purchased 100 Shares of Essex Property Trust, Inc.
      Purchased 100 Shares of Essex Property Trust, Inc. On Friday afternoon, just prior to market closing, this site’s Value Investment Fund purchased 100 shares of Essex Property Trust, Inc. at $221.21 per share. With the $1 per share transaction fee, total investment was $22,221. This transaction acts as an insurance purchased against the existing PUTs due on ...
    • Sold PUTs on Norfolk Southern Railroad

      Sold PUTs on Norfolk Southern Railroad This morning, 09/29/22 at 10:37 AM, the Value Investment Fund sold 200 PUTs on Norfolk Southern Railroad at $6.20 netting $5.20 each after transaction fees. These PUTs have a strike price of $145 each and expire on January 19, 2024. The Fund uses options, specifically PUTs, to augment the income and ...
    • Value Investment Fund – End of June 2022 Report (Halfway Through 2022)

      Value Investment Fund – End of June 2022 Report (Halfway Through 2022)
      Overall, the Value Investment Fund is performing remarkably well in relation to the balance of the market during the first six months of 2022. This is even with the error associated with the failure to sell Wells Fargo back in second week of January. Overall, the market is down at least 15% as indicated by ...
    • Bought Essex Property Trust

      Bought Essex Property Trust
      On June 14, 2022, the Value Investment Fund purchased 77.7000 shares of Essex Property Trust at $256.40 per share. Adding the $1 per share transaction fee, a total of $20,000 was invested into this security. In addition, the Fund sold a PUT option for 100 shares at $9.90 netting $8.80 per share. The strike price is ...
    • PUT Options – Leverage Tool for Value Investors

      PUT Options – Leverage Tool for Value Investors
      PUT options are an excellent tool to leverage the realized return for a value investment based portfolio of securities. In general, options are very risky financial derivatives and are not recommended for unsophisticated investors. In laymen terms, options are classed as mildly speculative instruments in the world of investing. The key to proper use is ...
    • Value Investment Fund – End of May 2022 Report

      Value Investment Fund – End of May 2022 Report
      During May, the Fund expanded the portfolio to include two new positions from among the existing 48 potential investments. The first included three separate tranche purchases of The Walt Disney Company and the second was an opportunity presented when Essex Property Trust, Inc. dropped below its intrinsic value. In addition, the Fund sold two separate ...
    • Essex Property Trust, Inc. – Sold PUTs

      The Fund uses options, specifically PUTs, to augment the income and boost the overall return of the Fund. The concept is simple. The Fund wants to own certain pre-qualified investments at certain prices; that is, market prices that are well below intrinsic value as calculated for the respective investments. These investments are basically top 2,000 ...
    • Essex Property Trust – Value Investment Fund Buy

      Essex Property Trust - Value Investment Fund Buy
      Recently, the Fund reevaluated Essex Property Trust Inc. and increased the company’s intrinsic value to $291 per share. In an article written in January of 2021, the Facilitator determined intrinsic value at $256 per share. In the course of one year, many market forces have elevated this intrinsic value higher. With real estate investment trusts ...
    • The Walt Disney Company – Position Update

      The Walt Disney Company - Position Update
      Disney is a DOW Jones Industrial Average member, which means it is one of the top 30 publicly traded companies. Anytime an investor can buy this company at a low price, it will reward patience. This site’s Value Investment Fund took advantage of the recent market decline along with the entertainment industry’s setbacks and now ...

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