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.
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 consist 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;
- Caluculating 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