Do you find the post useful? Please share Share4 Tweet0 For nearly a decade, Americans have tuned their televisions to ABC’s hit show, Shark Tank. For 60 minutes each episode, founders of up-and-coming start-ups pitch their ideas to highly successful entrepreneurs. It’s exciting, emotional, and entertaining all at the same time. The normal lineup of… [Read More]
Best Value Investing Blogs, Tips and Articles
Value investing is an investment strategy popularized by Ben Graham and has proved to be a superior investment strategy over long investment horizons. We all like to buy products and services on sale - value investing just extends the concept to buying and selling stocks. It tends to simplify the investment process by eliminating confusing and generally useless concepts often part of the advanced financial and management academic programs. The success as a value investor arises from understanding the business and also by staying disciplined. Therefore, value investing is as much a financial concept as it is a change in investor behavior.
As many enterprising value investors realize after many years of "value investing" in practice, just learning the concepts and methods does not make you into a successful value investors. If this was enough, you would see a large number of very successful value investor mutual fund managers with enviable long term track record. Sadly, it is not so.
In addition to learning the methods and tools of value investing, you have to acquire a certain behavioral attributes that define a value investor. A sincere appreciation of value, a healthy rejection of whatever market sets as the price as a true reflection of value or a given asset, and the guts to stay with own analysis and research for a long period of time DESPITE an uncooperative market.
In fact, the markets are normally against you for most of the time you are invested in any undervalued asset. This created a great opportunity to acquire the asset for cheap, and you did. Wouldn't it be great if once you buy something, the market quickly moves to realized the value for you? Unfortunately, this is not how it works in reality, so you need to be able to call upon a set of behaviors and beliefs to be able to wait patiently for your profits.
At Value Stock Guide, I believe that there is enough material out there that teaches you how to calculate a certain ratio, or create a discounted cash flow model. This is not the secret to investing successfully for long periods of time. The secret to investing successfully for long periods of time is how you act and react at the edges. Do you display conviction in your ideas when the stock goes against you, or do you fold meekly? How do you build up this conviction? Isn't taking the easy way out like everyone else more comforting? Why do you invest - is it because you like the thrill of buying and selling, or is it because you patiently want to see your portfolio grow? Can you sit and watch the paint dry for days, if you know that at the end of the week there will be a substantial reward waiting for you?
I tackle many behavioral and soft side of value investing on these pages. Sometimes I also talk about the concepts. No one has ever become a good investor without building their core base of correct foundational investing attributes. You can do this here.
The articles below explain the concept of value investing, tips and tricks including articles aimed at beginner and advanced investors. Many of the concepts presented here are result of the evolution of value investing practice over time. Original value investing research and strategies are also posted here.
At some point you will wish to start using some of these ideas in your investing. We can help you find the best stocks to buy now and create a well optimized and high performance portfolio.
View articles in other categories: Dividend Stocks, Large Cap Stocks, Mid Cap Stocks, small cap stocks, Macro-economic, Investing Questions, Business, Personal Finance, Investment Guide, Investment Definitions
Further reading
| How to get started in stocks |
A Value Investor’s Search for Off Balance Sheet Liabilities and Assets
Do you find the post useful? Please share Share9 Tweet0 To investors, Enron appeared strong and prosperous. However, what was hiding outside of their financial statements would lead to one of the largest scandals in Wall Street history. Chief Financial Officer, Andrew Fastow, argued a clever twist of the rules prior to being handed a… [Read More]
Is Your Portfolio Dangerously Diversified?
Do you find the post useful? Please share Share3 Tweet0 When I was a kid, Halloween served one purpose — to collect as much candy, in as little of time, as possible. My costume was designed to provide mobility and minimal obstruction. More importantly, my candy bag (also called a pillow case) was built to… [Read More]
Anti Martingale Strategy Applied to Value Investing (Scaling into Positions)
Do you find the post useful? Please share Share5 Tweet0 One of the consequences of using a volatility based position sizing strategy (we use the risk parity method) is that for highly volatile stocks, you may start out with a very small initial position. However, the level of undervaluation in the stock may call for… [Read More]
Kelly Criterion in Value Investing to Maximize Portfolio Growth
Do You Find the post useful? Please share Share5 Tweet0 The following is an excerpt from the ebook The Real Secret to Beating the Market by 6% Annually. Click here for more information and to purchase The Kelly Criterion Kelly Criterion was developed by John Kelly at Bell Labs. It has been proven to maximize… [Read More]
Why Buying Stock on Margin is Not a Good Idea?
Do you find the post useful? Please share Share3 Tweet0 If you have been investing for a while, you have undoubtedly considered buying stock on margin. And why not! Your broker offers margin investing (what is a stock broker?). You have a great idea for stocks to buy. You just have enough money to buy… [Read More]
Buying and Selling Stock: Buy Price is More Important than Sell Price
Do you find the post useful? Please share Share4 Tweet0 Buying and selling stock requires discipline and well defined approach if you wish to be a profitable investor. I think a lot of us are very fixated on getting the highest price they can receive when they sell a stock. I think this is a… [Read More]
Use Investment Checklist to Pick Right Stocks and Improve Your Value Investing
Do you find the post useful? Please share Share12 Tweet0 Checklist investing is a simple process with tremendous benefits. An investment checklist can protect you from yourself, and propel you towards investment success. Atul Gawande is known for writing The Checklist Manifesto – a book where he describes how checklists protect us from our cognitive… [Read More]
Value Vs Growth Investing: Why You Should Pick Value All the Way
Do You Find the post useful? Please share Share4 Tweet0 Value vs growth investing is a no contest. There’s a lot of debate around the philosophy of value vs growth investing. Value investing is the process of investing in stocks that are undervalued relative to their intrinsic value, while growth investing refers to the philosophy… [Read More]
Why is Having a Business Owner’s Mindset Key to Success in Value Investing?
Do you find the post useful? Please share Share6 Tweet0 You can make money investing in the market – if you have the right mindset. When one thinks about the characteristics that make for a good value investor, there are a few non-negotiables. Temperament is key – an investor needs to be able to divorce… [Read More]
Same Stock, Two Value Investors, Different Results
There is often this inherent conflict in a value investor’s mind that continues to play for almost every investment he makes. If you have been investing for a while, you will read what I am writing and nod along. You know what I am speaking of. Best Value Investors Have 2 Qualities in Balance Quality… [Read More]
The Dangers of Not Diversifying Your Portfolio
When it comes to investing, the key for most people to make money is to avoid as much risk as possible. In order to accomplish this, it’s best that all investors decide to diversify their investment portfolios in all possible ways. However, while it may sound simple, diversification is anything but that. However, by following… [Read More]
Stock Market Rules of Thumb May Lead to Misleading Financial Ratio Analysis
Do you find the post useful? Please share Share3 Tweet0 Anyone who has ever tried to value a company has used some rules of thumb when conducting the financial ratio analysis. For me personally, these form a base upon which various stock screens and shortlists are structured. Looking for undervalued stocks can at times feel… [Read More]
What are Cyclical Stocks – 4 Phases You Should Know to Profit
Do You Find the post useful? Please share Share2 Tweet0 Cyclical stocks tend to be reliable profit generators in a value investor’s portfolio. Cycles exaggerate the valuations because they cause uncertainty in the market. So arguably, value investing should work very well. In practice, it can be hard to identify the right investment candidates and… [Read More]
Size Premium is Alive and Well – Just Need to Filter the Garbage
Do you find the post useful? Please share Share0 Tweet0 Early Example of the Size Premium – Sir john Templeton In 1939, Sir John Templeton borrowed $10,000 and used it to invest $100 in every stock listed on NYSE selling for under $1. In all, he purchased 104 different stocks. No regard was paid to… [Read More]
Growth Vs. Value Stocks: Who Wins Globally?
Do you find the post useful? Please share Share0 Tweet0 Earlier I explored reasons why value investing beats growth investing over a long term. The article was based on the data from the US stock market going back many decades. In this day and age when investors often invest in global stocks either through ADRs… [Read More]
The Education of a Value Investor by Guy Spier – A Review
Do you find the post useful? Please share Share0 Tweet0 I have followed Guy Spier for many years, ever since he and Mohnish Pabrai plunked down $650,100 in an auction for lunch with Warren Buffett. So when the publisher palgrave macmillan wanted to send me a review copy of his book “The Education of a… [Read More]
If You are Not Committed to the Process, Value Investing will not Work
Do you find the post useful? Please share Share2 Tweet0 Most would be value investors understand the principles of value investing but falter in the practice. The reason often does not lie in what you know, but more in how you handle your portfolio. The basic precepts are simple – buy a stock if the… [Read More]
When to Sell Stocks in Your Portfolio?
Do You Find the post useful? Please share Share4 Tweet0 As a value investor, two key decisions make or break your investment success. You have to know when to buy a stock. You also have to know when to sell stocks you own. Both these decisions can be fraught with self doubt if you still… [Read More]
A quick tip for reducing the impact of the confirmation bias on your investing returns
Do you find the post useful? Please share Share2 Tweet0 Briefly, the confirmation bias occurs whenever individuals deliberately search for information that corroborates whatever decision they have either made, or would like to make. This is clearly hazardous to the investing process because it means that investors may really like a company for some inexplicable… [Read More]
- 1
- 2
- 3
- 4
- Next Page »