Value Investing

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.

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;
  • Free webinars from the author following up the lessons;
  • Charts, graphs and resources to use when you create your own pool;
  • Access to the existing pools and their respective data models along with buy/sell triggers;
  • Follow along with the investment fund and its weekly updates;
  • White papers addressing financial principles and proper interpretation methods; AND
  • Some simple good advice.

Value Investment Club

Please Signup
*
Username
Username can not be left blank.
Please enter valid data.
This username is already registered, please choose another one.
This username is invalid. Please enter a valid username.
*
First Name
First Name can not be left blank.
Please enter valid data.
This first name is invalid. Please enter a valid first name.
*
Last Name
Last Name can not be left blank.
Please enter valid data.
This last name is invalid. Please enter a valid last name.
Website (URL)
Website (URL) can not be left blank.
Invalid URL
Invalid URL
*
Email Address
Email Address can not be left blank.
Please enter valid email address.
Please enter valid email address.
This email is already registered, please choose another one.
*
Password
Password can not be left blank.
Please enter valid data.
Please enter at least 6 characters.
    Strength: Very Weak
    Select Your Payment Gateway
    How you want to pay?
    Payment Summary

    Your currently selected plan : , Plan Amount :
    , Final Payable Amount:
    Submit

    • Value Investment Fund – Status on September 30, 2021

      Yes, during September the Value Investment Fund only held one position which was Wells Fargo. It only decreased in value a mere .6%. To make this even more interesting, during September, Wells Fargo was hit with two more fines from the agencies of the federal government totaling more than $300 Million and yet, Wells Fargo ...
    • Value Investment Fund – Status on August 31, 2021

      Value Investment Fund - Status on August 31, 2021
      Although the Value Investment Fund continues to grow, opportunities wane. It has been smooth sailing so far mostly due to an economic downturn in 2020 driven by COVID. Opportunities still existed into late 2020 of which this Fund took advantage. Now I have to add more potential opportunities or growth will amble along. There does ...
    • Value Investment Fund – Status on July 31, 2021

      Value Investment Fund - Status on July 31, 2021
      The Club’s Value Investment Fund keeps moving forward. During July 2021, the Fund’s balance improved $6,308, a 4% gain over the prior month. During July, the Fund sold both its holdings in Equity Residential and UDR. Both stocks reached their preset expected sales price triggering the sale of the stock. 
    • Sold Equity Residential for $83 per Share/Purchased at $52 per Share

      Sold Equity Residential for $83 per Share/Purchased at $52 per Share
      Throughout the last five months, over several different articles, the Fund stated that the goal for this particular investment within the REITs pool was to sell once the stock price hit $83 per share. On July 15, 2021 at 10:23 AM, the stock price hit $83 per share triggering the automatic sale of all 574.459 ...
    • Value Investment Fund – Status on June 30, 2021

      Value Investment Fund - Status on June 30, 2021
      The Club’s Value Investment Fund glided along during June 2021. The Fund grew a meager .4% driven by the sale of Essex Property Trust on June 18, 2021. Total actual gain during June was $582 as illustrated in the report below. During this time period, the Dow Jones Industrial Average decreased about one-tenth of a ...
    • Sold Essex Property Trust – 74.07% Annual Return

      Sold Essex Property Trust - 74.07% Annual Return
      On June 18, 2021 at 2:56 PM, Essex’s share price dropped to $304 per share triggering a stop-loss order purchased a month earlier. This automatic sale of all 92.2638 shares netted $302 per share. The Value Investment Fund pays $1 per share for any transaction and also pays $1 per share for any option or ...
    • Value Investment Fund – Status on May 31, 2021

      Value Investment Fund - Status on May 31, 2021
      The Club’s Value Investment Fund continued to grow during May 2021. The Fund grew 3.35% driven by increases across the board for all investments. Total actual gain during May was $5,097 as illustrated in the report below. As stated multiple times throughout the lessons and tutorials, high quality stocks have less risk and thus, resist remarkably ...
    • Value Investment Fund Status Week 29 – Just Gliding Along

      Value Investment Fund Status Week 29 - Just Gliding Along
      The Value Investment Fund continues to just glide along with only a .2% increase over the prior week. Although the DOW dropped 571 points, a mere .16%, the respective investments within the Fund improved. This again demonstrates the importance of only working with high quality companies and buying the investments with good margins of safety ...
    • Value Investment Fund Status Week 28 – Steady As She Goes

      Value Investment Fund Status Week 28 - Steady As She Goes
      The course set by the Value Investment Fund is achieving its initial goal. The Fund continues to grow, not as fast as it did during the first few months of the new fiscal year. This is because when the respective investments are purchased at low values, and driven by their inherent quality, recover quickly to ...
    • Value Investment Fund – Status on April 30, 2021

      Value Investment Fund - Status on April 30, 2021
      The Club’s Value Investment Fund continued to grow during April 2021. The Fund grew 7.6% driven by increases across the board for all investments. Total actual gain during April was $10,703 as illustrated in the report below. As stated multiple times throughout the lessons and tutorials, high quality stocks have less risk and thus, resist remarkably ...