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.

There are three phases to the value investing program. The first phase consist of lessons 1 through 18 and introduce the concepts and principles of value investing. All eighteen lessons are open to the public. However, in some of these lessons, links exist to resources related to the respective pools of similar companies; access to that information/data requires membership status. 

The second phase consists of 34 additional lessons, Lessons 19 – 52. This phase of the program requires membership status. 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. 

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.

Value Investing Episode 1 – Introduction and Membership Program

  • Value Investing – Key Performance Indicators (Lesson 11)

    Value Investing - Key Performance Indicators (Lesson 11)
    All of us use indicators everyday to help us manage our lives. These indicators assist us with making good decisions. This same concept exists with stock investments. There are several different indicators related to stock. Most of them are financial in nature and often summed up via business ratios. However, many of the top companies ...
  • Value Investing – Business Ratios (Lesson 12)

    Value Investing - Business Ratios (Lesson 12)
    Business ratios are used to compare similar companies within the same industry. RULE #1: DO NOT USE BUSINESS RATIOS TO COMPARE COMPANIES AGAINST EACH OTHER IF THEY ARE IN DIFFERENT INDUSTRIES. Business ratios are not perfect, they have their respective flaws and it is important for value investors to understand the algorithms used with business ratios. ...
  • Value Investing – Industry Standards (Lesson 13)

    Value Investing - Industry Standards (Lesson 13)
    Have you ever wondered how the measurement of length called a ‘meter’ came to be? It is simply the distance light travels in a given time period. The key isn’t the actual definition, it is whom dictates this time period of travel. Some authority states that this is the definition of a meter (also written ...
  • Value Investing – Pools of Investments (Lesson 14)

    Value Investing - Pools of Investments (Lesson 14)
    Value investors utilize pools of similar companies all belonging to the same industry in order to reduce risk, create accurate buy/sell models and manage their portfolio of investments in their investment fund. It is essential that all potential investments in a pool have similar attributes including market capitalization, comparable operations, indistinguishable balance sheet relationships and ...
  • 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 ...
  • 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 Investing – Monitoring Performance (Lesson 17)

    Value Investing - Monitoring Performance (Lesson 17)
    Monitoring performance is the single best tool to ensure success with value investing. Comparing results against expectations provides the basis for good decisions. In business, this is known as the feedback loop. In effect, a variable input is changed, results are recorded, compiled and reported in a understandable format. Any unexpected results are analyzed and ...