Shailesh provides very insightful and well researched advice for Value Investors.
Shailesh provides very insightful and well researched advice for Value Investors. It is obvious that he has many years of experience in this field which is needed to successfully pick value stocks. I can really recommend Shailesh to everyone who is interested in value investments but does not have the time and experience to work out the required analysis themselves. Before working with Shailesh however, it is well recommended to understand the key principles of value investing - so you know what you are up too.
Practical, easy to read and follow. Helps you drown out the misguided information that some industries push to sell their narrative, and ultimately their products.
A must read for someone who wants to take responsibility for their own finances and get a good grasp of the philosophy required to be a successful investor.
You will be impressed
Since I have known Shailesh, I have been impressed by his bottom-up analysis and investing skills. If you are looking for someone to advise you on your investments, he is someone you should consider. I strongly recommend checking out his portfolio and his track record. You will be impressed!
Great explanation on why small cap value stocks present best ...
Great explanation on why small cap value stocks present best profit opportunities compared to other stocks/products and how to identify/realize them. Myths are highly informative and explained in detail. Valuable advice provided. Definitely, the author is a small cap value stocks expert.
easy to read
I have been following Shailesh's work for about 5 years now. He has consistently outperformed the market, and is superb at finding value plays in this erratic market. This book is short, easy to read, easy to understand, and is a great introduction to value investors. I very much recommend this to anyone looking to introduce themselves to value investing, and even for experienced investors.
Incredible source of knowledge
Shailesh is an incredible source of knowledge when it comes to investments as well as an extremely friendly person. Since I have been a member of the Value Stock Guide I have learned so much about his analysis of undervalued companies in addition to his thought process for his selection of new investments. Always willing to help and answer any questions, I've been nothing but a proud member ever since I've joined. The Value Stock Guide is a one of a kind opportunity to work with a true value investor with years of experience. His track record speaks for itself and I am happy to be associated with him.
I have tried a number of investment services and have found Shailesh Kumar with VSG to be far superior in everyway
I have found Shailesh's work on Value Stock Guide to be exceptional in every way. He is a professional value investor with a proven track record to beat market results with minimal risk. He thoroughly researches the companies that he recommends and puts his own money into his picks. He monitors his service closely and provides answers to any questions I may have on my investments. I have tried a number of investment services and have found Shailesh Kumar with VSG to be far superior in everyway. The bottom line on my investment portfolio agrees!
It was a no brainer for me
I use to work for Shailesh. When I came to know of Value Stock guide, it was a no brainer for me. All of his recommendation so far has been high value return for me and it goes with my investment philosophy of long term investment.
I wouldnt have considered most of these stock, would have been outside of my stock scanner or would have had no time to investigate. Thats why I think his guidance has been extremely valuable for me.
Very detailed and informative
I really like Shailesh' stock analysis, it is very detailed and informative.
Motivated me to become a better value investor
As a subscriber of Value Stock Guide Alpha* (VSGA), I am very pleased with the information and knowledge that Shailesh has joyously shared. The monthly screens provide great opportunities for investment ideas, and teachings from a practicing, proven, value investor.
Shailesh has motivated me to become a better value investor. I am very grateful for all his help.
* Value Stock Guide Alpha name changed to Value Stock Guide Perspectives
Shailesh is an extraordinary talent when it comes to investing in the stock market using the value aka Warren Buffet method. Since discovering Shaileh, I have watched him consistently bring to light undervalued companies long before the bulls of the market discovers them. I would advise anyone interested in building wealth to visit valuestockguide.com, or just shoot him an email… He actually responds!
Extremely happy with his service
Shailesh does an impressive job in finding low risk under valued stocks having catalysts for upside potential and offering a decent margin of safety. He discovers them well before Wall Street finds them. He refuses to overpay for a stock and believes much of the gains come from the price paid for the stock. Once a stock makes to his portfolio he monitors them closely like a hawk to ensure company is progressing like expected and if so waits patiently for the stock to reach its valuations and then makes a sell decision locking in profits. I joined his flagship VSG in Nov 2012 and extremely happy with his service. I realized much profit trading VSG stocks and did not see a single loosing trade so far. Shailesh answers any questions in email pretty much instantly. Best part of his service I like is his low trade volume which lets me focus completely on my IT job that needs my full attention. I believe I will be able to reach Financial Independence working with Shailesh in next 5 years or so. I just love his deep bottom up analysis on stocks and his service. I wish I found him much earlier and highly recommend his service to anyone looking for value stock advice.
A true value investor, Shailesh excels in finding attractive off-the-beaten-path investments away from Wall Street’s radar. His ability to cut through sentiment and provide insightful and thorough analysis makes his work compelling and ultimately very profitable. Seeking catalysts, he often has the uncanny ability to make calls that even technicians would be envious of. Additional qualities include being generous with time and attention to discussion and inquiry. Overall, highly recommended.
A track record over time that is hard to match. Shailesh is a person that I trust
I have known Shailesh Kumar socially for over 3 years. Shailesh has a varied business background including consulting in the automotive industry (my industry). His style of value investing achieved a track record over time that is hard to match. Shailesh is a person that I trust - he invests his own money in the companies that he recommends to his members. This is ultimately why I decided to join Value Stock Guide and follow his well researched stock investment recommendations.
A book to challenge your existing concepts
I have been following Shailesh for a while now and he send me over a copy of his book for a pre-review. What I like about it is he challenges your beliefs and makes you consider alternative realities.
By no means is this book for beginners, your need to have a little experience in the market and investing strategies for this to challenge you and not go over your head.
Well worth the read.
A rational and calm approach
In my personal capacity, I highly recommend Shailesh Kumar. He has a very balanced perspective because he was a business owner and CFO and is now into value investing. As a result, his evaluation of a potential opportunity has flavors of an owner and gives very close attention to risk. He then displays a rational and calm approach in assessing any necessary post recommendation special situations and addressing any questions.
His dilligence in research and service is amazing. His integrity is demonstrated in aligning his portfolio with his recommendations. His counsel is sought by professionals and amateur's alike.
Important reading if you want to understand investing
Well, this book is not for everyone. If you want to follow the herd and stick all of your money in an index fund, or pay someone to "actively manage" and over-diversify your investments, keep walking. This book is for people who question the intentions and advice of the financial industry and want to make decisions for themselves. Kumar presents a well-researched, experience-based rationale for buying and holding small companies - and includes valuable resources for further reading and next steps. He doesn't just want you to act - he wants you to understand. The sign of a true advisor.
Very impressed with the quality and depth of his stock analyses
I've received some excellent value investing ideas from Shailesh and I'm very impressed with the quality and depth of his stock analyses. Keep up the good work!
Knows how to find value
Shailesh is an excellent manager and a great investor. He knows how to find value, and how to manage expectations.
Proof of the pudding is in the eating
Shailesh Kumar who runs Value Stock Guide (VSG) is truly amazing. For the last 30 years I have being relying on Mutual Funds as well as various so called 'Stock Market Gurus' and various services, yet my returns have never beaten the S&P. Finally after reading The Intelligent Investor by Benjamin Graham, I started actively looking for a service that follows value investing and that's how I got to know of VSG. As they say, the proof of the pudding is in the eating and Shailesh has not disappointed. VSG historic returns speak for themselves and I've been lucky enough to witness them first hand.
This is a fantastic read!
Succintly put, the reader gets the very essence of value investing in a language a layman can understand. I enjoyed reading it and would highly recommend anyone interested in value investing to pick this up!
Read on if you want to find
You are about to discover the secrets of wildly successful investors.
My name is Shailesh Kumar and I am the portfolio manager of Value Stock Guide.
Ever wondered why the most successful investors tend to be value investors?
Where are the traders and speculators? True, some of these become rich, but most lose their wealth as quickly.
Turns out, value investing has some secret advantages over all other styles of investing, that allows value investors to far outperform the rest of the market over the long term
Around the middle of the 20th century, there was a young investor named Benjamin Graham. He figured out a startling fact. Most investors do not make money in the stock market because they overpay for their investments.
It is not about buying a great stock, although that can be important. It is not about selling at the right price, although that is certainly important. And it is definitely not about company growth, which turns out to be not very important, as far as stock returns go
The fact is: If you buy a stock at a good enough discount, you may be wrong about everything else and you will likely still come out okay
From 1987 Letter to the Shareholders
" If you've been in the poker game 30 minutes and you don't know who the patsy is, you're the patsy."
"If you've been in the poker game 30 minutes and you don't know who the patsy is, you're the patsy." Warren Buffett
Refuse to be the patsy. Decide to buy a stock only when you can get it for less than its worth
How will your life change if you value invest?
Stock Returns between 1930 and 2009 Show the Superiority of Value Investing, Specifically with Small Cap Stocks
1930 - 39
1940 - 49
1950 - 59
1960 - 69
1970 - 79
1980 - 89
1990 - 99
2000 - 09
1930 - 2013
S&P 500 Index
Includes reinvestment of dividends. Source: Dimensional Fund Advisors.
Or to put it another way ...
A $10,000 investment in 1930 made in S&P 500 Index would have seen your wealth grow to $22 Million by 2013. Not bad!
A similar $10,000 investment in 1930 made in small cap value stocks, on the other hand, would see your family enjoying a $707 Million portfolio in 2013
Very easy choice, right!
Any way you look at this, picking the right asset class WILL change your life
Value stocks consistently outperform the market. This is not in question. Study after study comes to the same conclusion. In fact there has never been a 20 year period where value stocks underperformed the market.
Do you plan to invest for 20 years or more?
How Do You Find the Best Stocks to Invest In?
To start, buy cheap stocks
Easy to say, right? But how do you find cheap stocks?
Turns out, it doesn’t matter. You pick a metric. Any metric. Be it Earnings, or Book Value or Sales or Cash Flow. Then you can blindly buy the stocks that are selling at lowest price relative to the metric.
Value Investing Performance Using Price/Earnings Ratio
1952 - 59
2000 - 2003
50 High P/E Stocks
50 Low P/E Stocks
Value Investing Performance Using Price/Cash Flow Ratio
1952 - 59
2000 - 2003
50 High P/CF Stocks
50 Low P/CF Stocks
Value Investing Performance Using Price/Book Ratio
1952 - 59
2000 - 2003
50 High P/B Stocks
50 Low P/B Stocks
Value Investing Performance Using Price/Sales Ratio
1952 - 59
2000 - 2003
50 High P/S Stocks
50 Low P/S Stocks
Source: What Works on the Wall Street. 3rd edition, James O'Shaughnessy
As you can see, value stocks do better than growth stocks, no matter how you pick them!
Profit Driver #1
Value stocks consistently outperform growth stocks due to the existence of Value Premium
The value premium exists because the market over reacts to any hint of trouble with a company. Investors (both individual and professional) are quick to reach when they realize they may end up being the "greater fool"
A value investor realizes that most companies survive. If he keeps buying stocks cheap, on average he will perform very well over time, even if a few of the investments do not work out
Profit Driver #2
Small company stocks outperform large stocks and market indexes due to the Size Premium
Small company stocks over a reasonably long time horizon, beat the large and mid company stocks and the overall stock market indices. This is because the Size Premium exists and favors small cap stocks
The reason this size premium exists is that the smaller company stocks are less followed by professional analysts. Therefore, enough information gaps exist in this sector to create opportunities that you and I can exploit for profit
You May be Asking: If Value Premium and Size Premium are each so good by themselves, what happens if you combine them?
Short answer is that small cap value stocks are the undisputed leaders when it comes to the stock market returns. It has been this way ever since we have tracked the stock market returns based on asset classes.
In fact, the difference is so large and consistent, you would be right to wonder if investing in a large cap index fund such as S&P 500 makes you one of the biggest patsies in the stock market
Total Stock Market
Source: MoneyChimp.com, Inflation adjusted annualized returns 1927-2005
More recent Ibbotson study with 10 year rolling returns confirms these results, and shows the value of keeping a long term investment horizon
The evidence is overwhelming. This data is out there. The trend is consistent. The conclusions are beyond dispute. Still, the financial media, the mutual fund industry, and the financial adviser community keep telling you to buy large cap index funds
Paraphrasing PT Barnum:
There are new patsies created in the stock market everyday
Here is the beautiful part: It is because these patsies exist, and in such large numbers, that value investors like Graham and Buffett and YOU can make tremendous profits in the stock market
Wouldn't you agree that it is far better to take advantage of the sheep in the market, then to be a part of the herd?
There is more ... Introducing the 3rd Profit Driver of Your Portfolio
In my expert opinion, this is huge!
Let me tell you this straight up. 99% of the investors have no idea how important this is, and the big difference it can make in your future wealth.
This is the secret why:
Profit Driver #3
Accurate Money Management
You need a solid risk management and position sizing process that you stick to with discipline
You can appreciate how different proportions of the same stocks can deliver different returns. In fact, it may be the difference between a profit and a loss.
It is no wonder Warren Buffett describes his job at Berkshire Hathaway as a "Capital Allocator"
Here is why this matters:
Let's say the market returns 10% per year for the next 40 years. At the end of 40 years, $100 invested will equal $4,526
Your friend has a great position sizing strategy, and he invests in small cap value stocks, and he achieves 11% per year for the next 30 years. At the end of 40 years, his $100 invested will equal $6,500
You on the other hand had no position sizing strategy and you invested your capital randomly in the same stocks your friend invested in. You achieve 9% per year for the next 40 years. Not too bad, just a little less than your friend you think. However, at the end of 40 years, your $100 invested is now just $3,141
You retire with less than half of what your friend has, and a third less than a simple index fund.
Keep in mind that a the errors in position sizing are normally not just a % here or there. They tend to be quite significant and compound rapidly. It is not uncommon to find investors who get wiped out after a few years and have no idea what they did wrong.
Learn More About Value Stock Guide Investment Strategy
Download our FREE whitepaper "Secrets of Profitable Investing". We talk about the 3 Profit drivers in more detail, with a greater explanation of the Position Sizing process than I can go into on this page. Use it to develop your own capital allocation strategy.
Value Stock Guide is the Only Service that Gives You All 3 Profit Drivers so You Can Maximize Your Profits and Minimize Your Risk
This is the holy grail of investing.
The recipe for success in investing can't be any simpler:
- Invest in the stocks that are more profitable
- Ensure you minimize your risk and allocate your capital to maximize profit
You know where the most profitable opportunities are. If you truly understand this, and decide to focus on small cap value stocks, you will likely come out better than most of the other investors.
If this takes too much of your time or you think you do not have enough financial expertise to do this on your own, there are many number of services online that can give you stock advice and recommendations. Value Stock Guide does this for you as well.
However, as far as I know, none of the other investment advice services or stock guide tell you how to optimally allocate capital in your portfolio.
Ever had the feeling that your investment service claims a certain return, but you never seem to get it in your own portfolio? Perhaps, they never told you how much to put in which stock!
Value Stock Guide tells you which stocks to buy and why, and I also tell you how much of your portfolio to allocate in each of the stocks. I have a strict risk management process that works to break out of value traps and protect against market crashes while capturing as much of the upside as we can. I follow the stock from purchase to sale, as if my own wealth depends on it.
It is because my own wealth DOES depend on it.
When You Invest with Me, I Invest With You
I do not give you a model portfolio. I give you my personal portfolio. I have only one portfolio and I invest my money in the stocks I ask you to invest in.
A lot of places will tell you that they avoid conflict of interest by not investing in their recommendations.
I think this is laughable.
I totally and absolutely invest with you. This makes sure that I only ask you to buy what I am willing to buy. My members trust me because they know I eat my own cooking.
This allows me to make decisions such as: buying more when a stock declines significantly.
Think about this - I do not have the need to make my portfolio look nice by chasing returns and cutting (temporary) losers.
I can make unpopular decisions to increase my position when the prices are cheaper. I can focus on the long term while others are forced to chase short term gains.
This is the essence of value investing. And you only get this at Value Stock Guide because my incentives are completely in line with your success.
If this is something that appeals to you, please explore the site, ask questions, and consider the Premium Membership. I am taking 2000 well chosen members globally in the VSG Premium program and will be delighted to have you grow your wealth with our exclusive community.