Value Investing Tips, Articles, Concepts and Research

More in Value Investing G.U.T Series Part 1: Business Lifecycle Part 2: BCG Matrix Part 3: Stock Selection and Portfolio Management Stock Selection Matters For value investors, active portfolio management remains much more an art then science. There is sufficient value investing literature available that describes the methods and processes fundamental analysis to find appropriate [...]

This is a short and concise illustration of the value investing process and makes for an enjoyable viewing. I specially love the part about “but there is one small problem. The company is not profitable …”. Interestingly, he also alludes to the margin of safety concept in this clip Video courtesy: 40procent20ar on Youtube

Be fearful when others are greedy and be greedy when others are fearful – W.E.Buffett Bill Gross of Pimco, the bond man himself, writes in his monthly market analysis that the "cult of equity" is over, and the consistent long term returns for stocks since 1912 will be viewed as a historical freak. Gross follows [...]

Soon after purchasing the newspapers owned by Media General, Warren Buffett has now indicated that he may buy more newspaper assets in the coming years. According the the memo posted on the Omaha World-Heralds Buffett remarks "We will favor towns and cities with a strong sense of community, comparable to the 26 in which we [...]

I have been asked a few times why I do not invest in commodities. As a value investor, it is really hard to wrap my mind around the notion that commodities might be considered an investment. Here is why. Commodities have no intrinsic value. They have price. But the price is not the same as [...]

Often you might come across stock warrants and you might have wondered what does it mean. Even if you are not interested in buying the warrants, it is important to know if the company that you are interested in buying the stock in also has outstanding warrants, as the warrants can have disproportionate effect on [...]

Investors are constantly reminded that the markets are efficient and there is no use trying to beat the market as it cannot be done on a consistent basis. In fact, we are told, that over 70% of the mutual funds fail to beat the market, presenting this as an evidence to somehow imply, in some convoluted logic, that we are better off handing over our money to the same mutual funds and invest passively, rather than take control of our own portfolio. I find this argument even more vacuous, considering that the best investors and stock pickers, who also happen to manage significant sums of money, do not usually run mutual funds.

There was a time when I used Edgar Online’s I-Metrix tool to do run basic screens and pull fundamental data in Excel that I can build my models on. The pro subscription, which you need for the Excel plugin, runs about $5K/year, and while the tool is powerful, I didn’t feel that the value it [...]