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]
Beginner's Guide to Investing the Value Stock Guide Way
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 guide to value investing 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 Investment Guide?
This 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 fill up and will be expanded
There is no specific way to use this 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 bottom 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
Detailed Beginner's Investing Guide
Explore the value investing process and concepts in greater detail with the following articles. This is a work in progress and will be expanded continuously over time.
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. What is Profit Margin? The profit margin is the percentage of revenue or sales that… [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]