Value investing basics that will significantly improve your investing returns
Much of the common wisdom in investing is wrong.
Financial industry and investment advisors have vested interest in promoting mediocrity in investing. Unfortunately, that means you pay for ineffectual advice in more ways than one.
Would it be worth to you to know which ideas are dragging your returns down? What if this is backed by over 80 years of research?
In this book you will find,
- One of the most profitable asset classes that consistently beats the broad market indexes, proven by over 80 years of historical data. You can easily invest in this asset class, but very likely you do not because you have been told this is risky
- Why individual investors like you and I have tremendous advantages over Wall Street but we choose to give these up in exchange for a guarantee of (just below) average performance
- 5 of the most insidious investing myths that you believe in because advisors and financial media tells you so. Each of these myths keep your returns down and your profits below average
- The right way to think about risk. This one mental shift can add millions to your portfolio over a lifetime of investing
You may know me from the website ValueStockGuide.com. Value investing is in my blood and I have been doing this for 20+ years now. At Value Stock Guide, I have led my global clients to market beating returns since 2011.
But I was not always this successful in the stock market. I remember when I started investing for the first time, reading the best expert advice available, and eagerly trying them out. Unlike most other investors, I took notes on what really worked and what hurt over time.
What I found was astounding!
But first: Look at the records of the value investing greats and ask yourself this
- Have they become so successful by diversifying their portfolios into 100s of different stocks or by buying index funds?
- Do they buy and hold the stock forever, without regard to the changing fundamentals, and reinvest the dividends blindly?
- Do they lose sleep when the stock they own declines or do they rub hands in glee at finding “sale prices”? How do they know the price is a steal?
Astounding find: The stock market investing basics that you so believe in are not really true
If this was the only story, there would be no need for this book. What is truly mind blowing is that there is really very little proof to back up the so called fundamental basics of investing as they are being told to regular investors.
On the contrary, the objective research and historical market data supports the exact opposite of how you are advised to act.
Perhaps this explains why most investors perform worse than the averages, doesn’t it!
Once you read this book, you will realize why great value investors do what they do. And finally, you will be able to use the same knowledge in your own investing to improve your profits many times over your investing career.
This is a short book, as many good things in life are. You only need a few small ideas to completely transform your investment performance for the better. As you will realize reading this book and perhaps the material on the website, successful value investing today is more about aligning your investment philosophy and attitudes a certain way, and less about crunching numbers. There are many value investing books that tell you how to build different models. The fact is, without the correct approach, the best value investing models will not lead to success. One needs to get their value investing basics right