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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    • Bought Norfolk Southern Corporation

      Bought Norfolk Southern Corporation
      Bought Norfolk Southern Corporation Yesterday at 10:45 AM the market price for Norfolk Southern Railway dropped below $199 per share. The Value Investment Fund purchased 100 shares at $199 per share and paid a $1 per share transaction fee. The Fund exercised its margin account to purchase this position. The margin account terms requires a 2% ...
    • Bought 100 Shares of Avalonbay Communities

      Bought 100 Shares of Avalonbay Communities This morning, the Value Investment Fund purchased 100 shares of Avalonbay Communities Inc. The Fund paid $160 per share plus a $1.00 fee. In addition, the Fund utilized the margin account and paid a 2% fee. Thus, the total basis in this transactions is as follows: Market Price        ...
    • Bought 400 Shares – Wells Fargo

      Bought 400 Shares – Wells Fargo
      Bought 400 Shares – Wells Fargo On 03/15/23 at 3:10 PM, the Fund purchased 400 shares of Wells Fargo. The Fund used the proceeds from the Comerica sale to buy into a position with Wells Fargo. The Fund paid $39.51 per share including transaction fees of $1 per share. Total investment was $15,804. The Fund now ...
    • Sold PUT Contract for Essex Property Trust

      Sold PUT Contract for Essex Property Trust
      Sold PUT Contract for Essex Property Trust This morning, the Value Investment Fund a PUT contract on Essex Property Trust for 100 shares. The contract is for $10 a share netting $9 per share after fees of $1 per share. The expiration date is set for October 20, 2023 with a strike price of $200.00 per ...
    • Sold Comerica Bank Two Hours Later

      Sold Comerica Bank Two Hours Later
      Sold Comerica Bank Two Hours Later One of the advantages of value investing utilizing pools of similar stocks from a single industry is that every now and then, like once a decade, a unique opportunity will present itself to take advantage of the knowledge and hard financial analysis work one does. In this case, it happened ...
    • Bought Comerica Bank

      Bought Comerica Bank Today, the Value Investment Fund took advantage of the chaos in the banking industry and purchased 1,200 shares of Comerica Bank after the the share price dropped below $30 per share. Purchase occurred at 10:15 AM. Total cash requirement including the $1 fee per share was $37,188.00. The Fund used it’s margin account ...
    • Sold PUTS at Year End 2022

      Sold PUTS at Year End 2022 The Value Investment Fund sold the following PUT contracts; the corresponding schedules validate the market prices.   Company                        Expiration Date   Strike Price      Sale Price          Net      #of Shares     Net Earnings    Financial Commitment Essex ...
    • 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 ...

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