Who is a value investor
Generally speaking, value investors recognize two things.
Firstly, most businesses are long-term, and the real effect of short-term profits falls on the long-term value of a business is often small.
Secondly, they recognize that, on average, most company profits are mean reverting over time. i.e., over the longer term, disastrous profit falls are frequently reversed and conversely, extremely strong profit growth tends to slow.
The origins of value investing go back to research by Benjamin Graham and David Dodd in the 1920s, when both men began teaching at Columbia Business School.
Many of the concepts of value investing are described in their book, Security Analysis, and Graham’s book, The Intelligent Investor.
Warren Buffett, the most successful practitioner of value investing, was a student of Graham’s at Columbia.
Invest with Benjamin Graham
Value investing is about finding diamonds in the rough—companies whose stock prices don’t necessarily reflect their fundamental worth.
Value investors seek businesses trading at a share price that’s considered a bargain. As time passes, the market will properly recognize the company’s value, and the price will rise.
- Value stocks are less “expensive:” Their prices are low relative to their sales or profits.
- They are less risky: They have already proven an ability to generate profits based on a proven business model.
Portfolio includes:
- 20 carefully selected companies to invest in
- Investment strategy
- Rebalancing strategy
- Exit strategy
- Risk factor
- How long should you hold the position to realize maximum gain
- How to buy stocks for investment
- How to open a brokerage account
If you are a Canadian, open an investment/trading account with Questrade and get $50 as a gift.
Apply the following code: 526528465427796
(If you open a Questrade account without a referral code, you get nothing!)
Go to Questrade and open your account.
Once you have opened an account, one of your family members can open an account using your code, and you will earn $50 each. Your $1,000 investment will grow to $1,100 with no stocks bought or sold!
The portfolio shows you how to open an account.
Open a Tax-Free Savings Account (TFSA) so the profit is not taxable.
Happy investing.
