Not exact matches
The fact that companies today are building most of their
value pre-IPO versus post-IPO (if they IPO at all) means that
investors who don't have access to high - quality venture capital and
other private opportunities are missing out on considerable gains.
So if you drew a horizontal line and call that fair
value like Ben Graham said, and then you draw a wavy line around that horizontal line and call that stock prices, the market is pitching us opportunities all the time between stocks that are way below fair
value and way above fair
value, the reason
investors don't beat the market has nothing to
do with the market is not throwing us pitches in that it's not still emotional, they are behavioral problem, there's agency problems, there is a lot of
other issues going on but it's not because we're not getting really great pictures all the time.
Well, according to van Biema, as well as
other concentrated
value investors and surveys
done on the topic, the magic number is 20 to 30 stocks.
The
other side the coin is having a partner whose interests are not aligned with you, is not a
value add
investor,
does not understand your business, and has completely different ideas about what the direction of the company should be.
But, if
investors did think that way then they were only worrying about how
other people priced the stock and not what the stock should be
valued at.
In the
other are those who argue that the old time
value investors don't get it, that these companies are redefining old businesses and will emerge as winners, thus justifying their high prices.
Joel Greenblatt walks us through examples of spin - offs, post-bankruptcies and
other one - off situations where some combination of forced selling and neglect can create opportunities for a
value investor who is willing to
do the work.
To the extent that an
investor or mutual fund generally makes trades that provide liquidity to
other investors (providing buying support for attractively
valued stocks under short term selling pressure, or providing supply for overvalued stocks under short term buying pressure), it
does not follow that these transactions are costly at all.
That is why SIPC
does not bail out
investors when the
value of their stocks, bonds and
other investment falls for any reason.
I didn't want to be like many bloggers where over 50 % of their post is quoting
others — I wanted to write from my heart, expressing my views on a wide number of topics relating to economics, finance and investment, from my unusual framework, which is Evangelical Christian, mostly libertarian (but not for financials), actuarial,
value investor, doubting neoclassical economics and modern portfolio theory.
John Bogle and
other lumpers warn us that it's unlikely that a typical
investor will stick with a strategy that doesn't work as expected for 10 years or longer, and that abandoning the bets on small - cap or
value stocks after an extended period of underperformance will reduce the
investor's long - term returns relative to simply investing in the total stock market.
In
other words,
investors don't buy a stock, bond, or
other investment and wait for it to appreciate in
value so they can sell it and earn a profit.
If an
investor does try to outperform a markets Charlie Munger is also saying that it is easy to be misled by promoters and business managers about the
value of a business or
other assets.
Warren Buffett and
other value investors stay away from technology companies not so much because they
do not understand it (technology) but because we can not
value the technology company, i.e we can not estimate the companies intrinsic
value.
I
do agree with John Hempton, Jeremy Grantham and a host of
others who think some of the large high quality names are the best long - term
values available today for a long - term
investor, but I'm trying to expand my search.
I recommend that any burgeoning
value investor do as many case studies as they can, sprinkled in among reading annual reports and
other filings.
In
other words, average
value investors do not adhere to the contrarian allocation as one would expect; they are actually trend chasing.
If, on the
other hand, you view risk as a
value investor does, i.e. volatility is irrelvant and risk is simply the inverse of the divergence of price from intrinsic
value, I hardly believe portfolio managers in aggregate have added
value there.
Well, according to van Biema, as well as
other concentrated
value investors and surveys
done on the topic, the magic number is 20 to 30 stocks.
I don't know if Ackman and
other value investors failed to cut Valeant losses because they fell in love with the company or because they were unable to see or acknowledge their mistake, but the moral of the story is that concentrated
investors watching the basket closely can still make costly mistakes.
However,
other value investors who are Buffett stock guys follow a different process where they don't look at the implied P / E of the intrinsic
value calculation.
I always look for opportunities that
other value investors won't like because that's how you get bargains, but if it doesn't work out for the reasons
other value investor cite, I'm going to look stupid.
In its simplest form,
value investing was a formula, but it had morphed into
other things — one of them was whatever Warren Buffett, Benjamin Graham's student and the most famous
value investor, happened to be
doing with his money.
But a
Value Investor who fails to consider valuations might
do okay all the same if his assessments of all the
other factors he takes into consideration are sharp enough.
With today's stock and bond markets overrun by insiders and the volume of options, futures and
other derivatives dwarfing actual investment in good companies while driving wild swings in their prices what is a traditional
value investor to
do?
Earlier TD Waterhouse will have set the exchange rate on the buy and sell to the same
value automatically and if the
investor did not call in to wash the trade, converted the portion of the trades that
do not offset each
other ($ 10,000 in this example) into Canadian dollars.
To find out more about this idea, as well as the ideas Eric originally profiled, and many more stock picks from
other value investors, all you need to
do is head over to hiddenvaluestocks.com and sign up today.
Safal Niveshak (SN): Could you tell us a little about your background, how you got interested in
value investing and what you are
doing now at Adventur.es as an
investor in
other businesses?
(6) «keeping the shares as no
value for as long as possible» - you can't manipulate the
value of shares, they are worth what they are worth, whether or not a professional has
valued them [though per my comment # 5 above, this is irrelevant]; (7) «Also a benefit of using share options» - share options seem to be irrelevant to the question and also to your own answer; (8) «talk to your
investors, see what they require» - Anyone thinking of
doing this should have their own pricing plan first, in order to talk to
others - you wouldn't want to get 20 opinions from different people to reconcile.
Growth stocks are more obviously volatile, which some people find hard to take — while
value stocks often
do nothing for long periods of time & then move far more sharply, which can be just as unbearable to
other investors.
Along with some
other research I
did, and correspondence with a fellow
value investor with more experience in the insurance field he also pretty much said the same thing.
Early stage venture capitalists can apply the tenets of
value investing to what they
do, provided they are willing to
do some extra work, and are willing to look beyond the most obvious methods that
other value investors use.
Other value investors are numbers - driven cigar - butt
investors who
do not consider the quality of the business.
While
other analysts tend to believe a stock will either go up or go down,
value investors are content to say «I don't know» on a majority of stocks, and only invest in the ones they are relatively sure about.
Other value investors are «focus
investors» (they concentrate holdings rather than diversify) and
do consider quality of the company in question.
He
does feel that there are fewer such opportunities today because schools are turning out large numbers of
value investors who are competing against each
other.
However, they
do like to be with people they respect — and these are normally
other value investors.
The
other key is keeping disciplined and be willing to own what most
others don't want (according to Templeton, that's how we make money as
value investors).
All the members have different things they
do in real estate investing, and in their
other jobs (if they aren't full time
investors), we never know what
value we can bring, or get from
others if we don't share what it is we
do.
i'd recommend to definitely understand how to
do the numbers and evaluate home
value... even just as important, connect with
other local
investors - don't stop going to the rei meetings... or at least continue to network with ppl in the industry so you can get more familiar w / the terminology and the goings on in your market.
CAP rates are a crummy way to
value residential real estate and an equally crummy measure of financial performance for all of the reasons mentioned above and more... you may disagree, but since the only
other person out there that regularly disagreed with you on this was kicked off this site for
doing so, and just about every
other turnkey operator seem to be in the business of perpetuating it as a metric to try to artificially pump up the attractiveness of their offerings and scam newbies, please forgive me if I try to offer some counterbalance and perspective to
other new
investors who would otherwise not have any
other exposure to such radical ideas as using CAP rates the way they were designed to be used by the professionals who use them.
Well, they are much better and I
do understand the
value they bring to
other dealers /
investors.
Hi @Ricky Hopp I am also an
Investor, and
do a lot of work for / with
other investors, I focus on distressed properties where a deal can be found and
value can be added to the property to increase rents or get a better quality tenant in the property.
So networking with
other investors and letting them know what you want to
do and why you want to
do it and bringing
value to them is a great way to get first shot when they want to sell their properties.
I know about the monthly NW REIA meeting but I don't know if there are any
other resources out there or possibly some
investors looking for someone to hang on their curtails and try and provide some
value.
BUT, creating
value for
other investors is something I can
do in order to learn more about the business.