“Be Fearful When Others Are Greedy And Greedy When Others Are Fearful” – Warren Buffett
The purpose of this site is to invite more discussion about value investing, especially for people to share their thoughts and investment strategies. Please check out the latest posts on the Blog page. For information about the actual Value Investing Fund, please visit VIF Capital Partners homepage.
What is Value Investing?
- Value investing is an investment paradigm that derives from the ideas on investment which generally involves buying securities whose shares appear underpriced by some form(s) of fundamental analysis.
- Warren Buffett has taken the value investing concept even further as his thinking has evolved to where for the last 25 years or so his focus has been on “finding an outstanding company at a sensible price” rather than generic companies at a bargain price.
Value Investing 101
- Screening – use quantitative ratios or build your own criteria to filter out the few best companies in the industries you love and be most familiar with. (Myth: you don’t need to search through 10,000 public companies before you find your favorites)
- Due Diligence – when narrow down to 15 to 20 companies, start research that company in and out, even try out the products or services yourself. Imagine you were asked to invest $1 million in your friend’s ice-cream store, what would you do?
- Price versus Value – develop a model to find the intrinsic value of a company and set a safety margin (i.e. value >> market price). (Myth: you don’t need to be 100% accurate with the intrinsic value. As Buffet says “”It is better to be approximately right than precisely wrong.”)
- Trading Strategy – if you do your hard work from #1 to #3 above, it does not matter you buy the stock today at $10 or tomorrow $8 as long as the market price is << the intrinsic value, you shall have no worry about when you can make a gain. The time to value maybe sometimes longer than 6 months or a year but in a long run, you surely can beat the S&P 500 with a fairly large margin.
Disclaimer: This website is for information purposes only and does not constitute a solicitation for investment in the company described herein, nor does it constitute an offer for sale of shares issued by the company or its affiliates. The company that this website introduces is a United States hedge fund that adopts a qualitative and quantitative systematic approach towards investments. Any securities offered to investors by the fund will be speculative in nature and involve a high degree of risk. They are suitable only for investors who can afford to lose the entire amount of their investment. There is no guarantee that actual performance will resemble past trading performance or back-tested trading results. Simulations and projected performance may not necessarily be a guide to future results. This brief statement cannot disclose all the risks and other factors necessary for evaluation of any potential investment. Any decision to invest should take into account the entirety of this website, additional documentation to be supplied to potential investors by the fund, and the individual’s financial goals and risk tolerance. An investment in these securities should be viewed as a medium to long-term investment.
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