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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    • Value Investment Fund Status Week 17 – Three in a Row

      Value Investment Fund Status Week 17 - Three in a Row
      Three good weeks in a row, the Club’s Value Investment Fund increased another 3.6% during this past week. That’s three weeks in a row with at least 3% improvement over the prior week. This past week’s growth was driven by the banking pool of investments, specifically the gain from Wells Fargo. Wells Fargo’s total balance ...
    • Sold Union Pacific PUTs

      Sold Union Pacific PUTs
      Union Pacific is a high quality stock. Over the last twenty years, this company has  never failed to earn a profit. During this time period, there have been two recessions. The simple fact is that Union Pacific is a solid investment. The company has paid a dividend for the last thirty years. Its current yield ...
    • Value Investing – Setting Buy and Sell Points (Lesson 16)

      Value Investing - Setting Buy and Sell Points (Lesson 16)
      Setting buy and sell points for any investment security determines the investment’s final return. If the buy is made too early while the security is falling in price, the value investor loses out on not only additional margin upon the sale of that security, but also reduces their margin of safety associated with the intrinsic ...
    • Value Investment Fund Status Week 16 – Another Good Week

      Value Investment Fund Status Week 16 - Another Good Week
      Another good week, the REIT pool of investments improved another $4,094 driven by Equity Residential and UDR’s actual results from the 4th quarter of 2020. Although the market responded positively to the results, the facilitator believes that UDR didn’t perform as well as Equity or Essex during the last quarter. This requires an in-depth review ...
    • Value Investing – History and Modern Day Concept

      Value Investing - History and Modern Day Concept
      There are tens of different definitions or interpretations of value investing. There is no single finite definition as even Benjamin Graham or David Dodd didn’t even use the term in their famous book, Security Analysis. What Graham and Dodd advocated in their writings was how to use multiple different financial tools, formulas, principles and economic ...
    • Value Investment Fund Status Week 15 – Amazing Movement Forward

      Value Investment Fund Status Week 15 - Amazing Movement Forward
      What a great week! Essex Property Trust reported their 4th quarter results and as expected, the stock’s market priced jumped almost $20 higher per share. The interesting part is that it wasn’t as if Essex reported great results; actually, their financial profits were in line with the third quarter profit. The market was holding back ...
    • Calculating Intrinsic Value for Bank Stocks

      Calculating Intrinsic Value for Bank Stocks
      Financial institutions, including banks, are highly regulated, extremely leveraged, and susceptible to interest rate fluctuations. Due to this unique exposure, calculating intrinsic value for bank stocks requires modification of the most popular valuation models. There are about five widely accepted intrinsic valuation models used with determining the core price for stock of most companies. Novice ...
    • Value Investment Fund – Status on January 31, 2021

      Value Investment Fund - Status on January 31, 2021
      The symbolism of the stock market are the bear and the bull. There is a third, the sloth for slow change. January is best stated as a sloth month. The stock market as a whole retracted 2%; but, the Value Investment Fund grew a meager .4% from $116,231 on December 31, 2020 to $116,727 on ...
    • Sold 113.6363 PUTS on Union Pacific Railroad

      Sold 113.6363 PUTS on Union Pacific Railroad
      In keeping with the value investment fund’s pattern, on Friday the 29th of January, 2021 the Fund sold 113.6363 PUTS on Union Pacific Railroad. These PUTS have a strike price of $175 and are currently sold at $6.24 each. The Fund netted $5.24 each after a $1 per PUT fee. Total realized value equals $595.45 ...
    • Value Investing – Investment Fund (Lesson 15)

      Value Investing - Investment Fund (Lesson 15)
      An investment fund is a collection of capital from one or more individuals and is used to purchase financial instruments of various companies or other funds. The most common types are brokerage funds that allow incremental purchases from members. These funds are often dedicated to a certain group or type of investment. These groups or ...

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