SWOT analysis is a powerful tool for understanding a company’s market position. If you haven’t already used SWOT analysis, you should. Read on to learn more about what SWOT analysis is, how to use it and why. What is a SWOT Analysis? SWOT stands for Strengths, Weaknesses, Opportunities and Threats. This method of analyzing a business’ strong… [Read More]
Investing Guide for Value Investors - Philosophy and Approach
How to Start Value Investing?
Value Investing is as much art as science and the investor psychology plays a great role in the success or failure of your investment strategy. The following compilation of articles and writings form a comprehensive value investing guide for a disciplined investor. These articles introduce the reader to the fundamental concepts in value investing as well as ideas, tips and tricks on appropriate actions to take at various different situations the investor is sure to encounter during his or her investment career.
Investing in the stock market is a way to participate in the wealth creation process in the society. While it can be very rewarding, beginning investors are often confused with the various concepts and can make mistakes if they do not follow the right investment strategy. We are putting together an investment guide that explains various concepts and terms you will come across as a investor. Whether you are a beginner or an experienced investor, you will find resources that will help educate, explain and clarify.
How to Use the Value Investing Guide?
This investing guide is logically arranged starting with major concepts or ideas. As you drill down, you will be presented with related concepts that you can explore further. In addition to defining the term and illustrating with examples, we have added narrative to show how to use these concepts in practice. These might include things to be watchful for, when to and when not to do a certain thing, other ideas that may be related but not intuitively obvious, etc. This is a work in progress and over time this will be expanded
There is no specific way to use this investment guide. However, we will outline 3 possibilities.
- Start with the top level topic and navigate to related topics as you read using the links on the page
- Use the search engine duckduckgo.com and add a "#!vsg" at the end of your search query (without quotes). For example, if you are searching for "stock warrants", you will write this in the search box "stock warrants #!vsg". This will take you directly to the search results on Value Stock Guide for your query
- You could also try the Search from the top of the page
Quick Start Value Investing Guide
The following articles will give you a quick overview of my investment philosophy and basic concepts for a successful value investing practice. This is a great place to start and then you can chose to go further and deeper in each topic from the more extensive list that follows
Quick Start Guide to Investment Strategy
Other Popular Articles on Investing
Detailed Beginner's Investing Guide
Explore the value investing process and concepts in greater detail with the following articles in the value investing guide. This is a work in progress and will be expanded continuously over time.
Great value stock picks start here.
View articles in other categories: Dividend Stocks, Large Cap Stocks, Mid Cap Stocks, small cap stocks, Macro-economic, Value Investing Tips, Investing Questions, Business, Personal Finance, Investing Definition
Knowing the financial health of your company comes with a lot of equations and terms. One that you need to know is “profit margin.” What is it, why does it matter and how do you calculate it? Read on to learn more. Definition The profit margin is the percentage of revenue or sales that is leftover after… [Read More]
What is Free Cash Flow? Free Cash Flow is a way of measuring a company’s financial performance. In essence, Free Cash Flow is the amount of money a company or firm can generate after spending the money they must in order to maintain and/or expand its assets. FCF is important because it tells companies –… [Read More]
Investing can be a complicated process. One of the most popular forms of investment is an ETF – an Exchange Trade Fund. They’ve been available since the 1990s and are common components of a financial portfolio – especially for first-time investors. Read on to learn more about what they are, why you should consider adding… [Read More]
An investment portfolio is a fantastic way to grow your savings and make wise financial decisions for your future. One type of investment, in addition to just general stock investments, is the stock option. Read on to learn more about what it is and how stock options work. What are Stock Options? A stock option… [Read More]
It’s not what you know; it’s how you act. Value investing is an incredibly profitable strategy when it comes to investing in the markets, but so much of the philosophy is rooted not just in formulas, ratios, and models but also in having the right temperament. How you act as an investor has a lot… [Read More]
How do you find the perfect value stock? Sometimes, if you are patient enough, the stars align and all the necessary conditions coalesce, offering up a perfect value stock to investors meticulously scanning the landscape. Value investing was born in the 1920s, pioneered by Benjamin Graham and David Dodd at a time when stock investing… [Read More]
The investment industry is filled with a number of wise old sayings. Be fearful when others are greedy. Be greedy when others are fearful. Invest in yourself. Markets can remain irrational longer than you can remain solvent. Another one you hear all the time is, “Invest for the long-term”, and for good reason. Despite recession,… [Read More]
Investors who are looking to purchase stock in a company are faced with a whole laundry list of decisions to make. One of these decisions – and a very important one – is whether to purchase common or preferred stock. In order to determine which is the best fit for your portfolio, it’s important to… [Read More]
There is more than one way to be a value investor. The classic value investor is someone like Benjamin Graham, often heralded as the father of the craft, who seeks to invest in companies whose shares are trading at a discount to intrinsic value. Intrinsic value is just another way of referring to a company’s… [Read More]
You might think, on first glance, that deflation and disinflation mean similar or even identical things. After all, the concepts they imply seem remarkably alike, don’t they? If you were to deflate a tire, wouldn’t it be the same as disinflating it? But this is actually not the case. Deflation and disinflation, in the field… [Read More]
At first glance, the effects of deflation can seem like a good thing – after all, deflation is accompanied by falling prices, which certainly make consumers happy. But deflation is often a sign of a recession and, in the long run, is not a good thing at all. Here are four reasons why: See also:… [Read More]
GARP, or growth at a reasonable price, is an investment strategy that seeks to combine the tactics of value and growth investing into one coherent strategy that an investor can use to select individual stocks. Value investing is the process of investing in stocks that are trading at a discount relative to their intrinsic value…. [Read More]
Charlie Munger, Warren Buffett’s partner and confidant at Berkshire Hathaway, attributes the success the two of them have enjoyed over the last 50 years to the use of mental models. Berkshire Hathaway is one of the most successful investment firms ever, generating compound annual returns of 20%+ over half a century. A mental model is… [Read More]
The world of investing is full of trading terminology. If you’re looking to invest in mutual funds, it’s important to know what kind of mutual fund best fits your needs and goals, but with so many options to choose from, it can be overwhelming. To help you out, here are some quick and easy definitions… [Read More]
For many investors, mutual funds are a more convenient and economical way to expand or diversify an investment portfolio. Because mutual funds typically spread out money over several different types of assets, they tend to represent a lower-risk option that appeals to many people. If you have been thinking about investing in mutual funds, you… [Read More]
In most cases, the buying and selling of stocks takes place through an intermediary agent known as a broker. For a fee, the stockbroker listens to your wants and needs, gives stock market investment advice, and then takes your financial capital and buys or sells stocks to try and help you make the most out… [Read More]
If you want growth, stick to value. The value investing part of your portfolio can serve as the long-term growth component of your overall asset plan. There’s no requirement to differentiate between value investing and growth investing sections of your portfolio because a thorough value investing approach incorporates growth into its calculations. How Growth is… [Read More]
Don’t lose money. When it comes down to it, investing is about not losing money. The best way to do that is to understand and mitigate the inherent risks that are part and parcel of putting up capital. Although a value investing approach is a low-risk strategy, investing is by nature a risky activity and… [Read More]
Have you ever met an 11 year old shareholder? That’s what Warren Buffett’s life was about at that age. At the tender age of eleven, the boy who would go on to become the Oracle of Omaha was already fiddling around in the stock market, having bought a few shares of Cities Service. Today Buffett… [Read More]