Value Investing General

cum2soon
cum2soon

Daily reminder that if you've 'invested' in one of the following:

- Cryptoshit
- 2 da moon stocks that are shilled on this board
- ULTRA RARE collectibles

..you've been played by shills.

This thread is here to absolve some of the toxic 'investment' culture on this board through education and facts. I know you guys have a short attention span so I'll keep it brief.

Value investing is the only way to make consistently high returns over the long term.

Best practices:
- Educate yourself first
- Never invest in things with no intrinsic value
- Be wary when others are telling you to buy something right now

All urls found in this thread:
http://www.investopedia.com/university/value-investing/
iluvmen
iluvmen

@cum2soon
Also:
- Nothing is free

5mileys
5mileys

So what value stocks are currently undervalued and provide a big margin of safety?

Bidwell
Bidwell

How do I educate myself?
any list of books to read?
any free courses i can take?

also, not to sound arrogant, why should I take advice from you. what are your qualification?

TreeEater
TreeEater

@5mileys
Well that depends user, but there are many small cap opportunities out there.

The brightest minds in finance are running large funds which means the mid-large caps are relatively efficiently priced.

Get out in the field and do your own research, read financials, and figure out if a company is worth investing in yourself. The internet is filled with shills and you won't get information here in such a competitive landscape as capital markets.

whereismyname
whereismyname

@5mileys
BFCF
PCO

Illusionz
Illusionz

@cum2soon
This may seem like a silly question, but how can you determine if something has "intrinsic value"? Different people value different goods and services in varied ways, how do you determine what's the best investment?

Lunatick
Lunatick

@Bidwell

You're already on the right track by taking a critical approach to shit you read online.

You educate yourself by reading. Many consider pic related the bible of VI, and it's probably true. Personally I think investopedia's guide is a much better place to start:

http://www.investopedia.com/university/value-investing/

It covers most important aspects and provides useful links.

The tl;dr version of VI analysis is a 20/80 composite between a 10-year DCF valuation and a strategical analysis (aka common sense) of a given stock. If this doesn't really make sense, read the guide.

You should take my advice if you're interested in finding the best possible long-term investments. Pic in the OP is the development in my portfolio compared to relevant index (purple) over the last 3 years.

Techpill
Techpill

@cum2soon
Daily reminder that if you've 'invested' in one of the following:

- Cryptoshit
- 2 da moon stocks that are shilled on this board
- ULTRA RARE collectibles

..you've been played by shills.
So far so good....

Value investing is the only way to make consistently high returns over the long term.
Aww, you done and went full retard. Value stocks are an important component of a well-rounded diversified portfolio, but no single one asset class is inherently the best. They all have periods of performance above and below the market average. This is why we don't put all our eggs in one basket ... even if its the relatively safe basket of value equities.

If you want to argue for strategic overweighting into small cap value stocks, especially for younger long-term investors, I'll cheer you on. But to make blanket statements about value stocks being the "only" way to make constantly high long-term returns is just categorically and provably false, especially in the technological era.

Burnblaze
Burnblaze

@5mileys

Big safety
still investing in companies on a value basis.

Look no further than VTV.

But to be completely honest I would recommend just dumping your money 80% in VTI and 20% in BND. You will instantly have a perfectly balanced portfolio with that.

SniperWish
SniperWish

@Illusionz

This may seem like a silly question, but how can you determine if something has "intrinsic value"?

The simple answer in this context is that value exists on two levels.

1. Market value (superficial value) - in this case the stock price. It goes up and down based on people's expectations.
2. Intrinsic value - the company's assets and cash flow.

A good illustration is Coca Cola vs Bitcoin. If everybody suddenly lost faith in the bitcoin, everyone would be in a rush to sell and the price would plummet. Anyone still holding bitcoin at that point would have lost the money they invested.
Now imagine the same scenario with coke stock. The stock price would also plummet. The difference is that the company would still produce and sell a gazillion bottles of coke every year and people would still buy them. So if you held on to your coke stock, you would still own a percentage of a profitable enterprise.

So you want to avoid investing in things where your returns depend entirely on the expectations of others.

TurtleCat
TurtleCat

@cum2soon
I just made a DCF analysis of $ATRI, would you be willing to look at it?

Also @Lunatick
had this book delivered to me on Thursday

idontknow
idontknow

What's your opinion on BRK-B / BRK-A? I have around 13k in it (~40% of my portfolio).

lostmypassword
lostmypassword

@Burnblaze
Look no further than VTV.

a year ago: $84.70
today: $86.11

mfw

am I missing something?

Poker_Star
Poker_Star

Basically just buy CERU?

Playboyize
Playboyize

@SniperWish
Coca Cola vs Bitcoin. If everybody suddenly lost faith in the bitcoin, everyone would be in a rush to sell and the price would plummet. Anyone still holding bitcoin at that point would have lost the money they invested.

The problem there isn't the plunge or value or the expectations of other, it's an investor who isn't paying attention.
If you haven't sold before your investment looses ~3.3%, maybe you shouldn't be handling your own investments.

Methnerd
Methnerd

@Playboyize
others
loses

typos, it's late

BunnyJinx
BunnyJinx

Buy monero and fuck these faggots with their boring investments

Stupidasole
Stupidasole

@TreeEater

BZZZZ wrong. Very few make money from small caps or pink sheets. It's pretty much gambling.

Illusionz
Illusionz

@cum2soon
- 2 da moon stocks that are shilled on this board

KEK
OP not making money with GXY and CNJ

I bought them in April when they were shilled initially.
A lot of shit is shilled, look at crackhouse MGT, I give you that, you yourself have to decide what is crap and what not.

Spazyfool
Spazyfool

@cum2soon
You're right, I wish I'd never invested in cryptoshit and instead settled for a healthy 10% annual return on my single bitcoin instead of the +10,000% I got with this shitty cryptocurrency.

I'm going to go and cry into my bitcoin wallet. I wish I was more of a sensible and informed investor.

MPmaster
MPmaster

@Spazyfool

Let's be honest here, very few people made 10,000%.

Why? Because few people saw their buttcoins rise and thought 'hey, let's not sell now at 500%... it might go up 10,000%'. The only people who made megabucks were like that Norwegian guy who did a paper in cryptocurrencies back in 2009 or something and forgot he even owned them. He then sold them in 2013 for, what was it, $4,000,000?

It looks great in retrospect, but few held out long enough for the massive gains.

Methshot
Methshot

@Spazyfool

The difference is sustainability.

Intelligent investors will keep making steady gains year after year for decades and can sleep easy.

Gambling your money on stupid shit will eventually make you lose big.

Skullbone
Skullbone

@MPmaster
10,000% gain is the best scenario. you are WRONGLY assuming that because we trade cryptos (which has been built up in your mind to be evil, probably because you once held to long) we dont understand technical and fundamental analysis. those of us who know what were doing accumulate and only sell when we truly need to. the majority of us know what were doing, thats why weve been supporting it for so long.

Burnblaze
Burnblaze

well I invested in GXY, CNJ and BAR and im 300%+ and its been only two months... so guys pls..

also watch daylait.com (no shill)

SniperGod
SniperGod

@Skullbone
you are WRONGLY assuming that because we trade cryptos ... we dont understand technical and fundamental analysis.

you don't understand fundamental analysis else you wouldn't be converting your legal tender currency into a virtual cryptocurrency that has proven to be compromised by cyber-crime and has no intrinsic value other than the current millenial trend. we had a similar thing in the 90's they were called stickers, pogs and MTG cards.

Methnerd
Methnerd

@cum2soon
There are no good value stocks right now.
There will only be good value stocks after a massive crash.
Cryptoshit will rocket during the crash.
Now I am rich enough to start value investing.
You are left with nothing and will sell your stocks to me at a terrible price so you can afford some kneepads.

Methshot
Methshot

howdy-ho gringos. Im also just starting out investing and I can attest, The Intelligent Investor is an amazing book. Also check out "Beating the Street" by Peter Lynch. Reading is definitely the way to go when it comes to developing your investment skills.

Anywho, heres my portfolio, started it on investopedia slightly more than a month ago. Rate, Hate Masturbate.

BlogWobbles
BlogWobbles

So I'm 20 and definitely fell for the meme but I was playing with like 25 dollars on robin hood.
I plan on investing much more when I have that sort of money but I'm in school working at a restaurant now. I like gambling extra money without taking too big of hits, but is there any way I can start with just like 100$ and slowly funnel money in until I have a large sum in there?
Or should I just wait til I can invest a couple thousand.

RumChicken
RumChicken

@BlogWobbles
no, you will not flip 100 dollars to millions or thousands. read books, learn the market. fuck around with small amounts if you want. learn about how shit works

Dreamworx
Dreamworx

@RumChicken
I do not want to flip it lol. I'm fine with my 25$ only going up a little. But if I'm correct most stocks that are reliable are going to be 10-15+ correct?

Evil_kitten
Evil_kitten

Never invest in things with no intrinsic value

Stock doesn't have intrinsic value, you moron. The prices go up and down on speculation alone (and often rumors) and daily reminder that the market cap does not affect the company's output directly.

It's all gambling. People got ultra rich investing on all this stuff you blacklisted and got poor through "value investing" like, say, real estate.

Hell, not even any of our currencies really got any intrinsic value.

5mileys
5mileys

@SniperWish
So to put your investment advice into practice, all you would have to do is invest in companies whose price to earnings ratios are below the industry average.

Im pretty sure you wont get very far with that

Playboyize
Playboyize

@cum2soon
I got in ACHC for 10 grand @53.85, I think it's just north of 56 now, but, that's not even my play.

They have rock solid fundamentals and a recently strange market trend, I could be missing something or just not know something someone else does, but, I dont think so.

5 quarters of revenue growth
5 quarters of profit growth
no excessive leverage
some exposure to UK because of a recent acquisition that scared people with brexit so I understand that volatility
projected to grow in 16/17
met or exceeded all earnings forecasts on the books so far

Most notably, they are in an industry I have extreme faith in and I think is an emerging market

junky rehab

I'd give it a solid look if I was you, everyone has it rated as strong buy, but, it just seems logical

lots of drugs coming in
people shilling behavioral therapy for the best path forward
growth for junky centers seems rather logical

Crazy_Nice
Crazy_Nice

@Methshot
starting your makeup investing with 6 figures.

good plan apple fag.

happy_sad
happy_sad

@SniperWish
So let's say both Coca Cola and bitcoin dropped to $25, in one instance you would own $25 worth of bitcoin, in the other instance you would own $25 worth of a 'profitable enterprise', how does this make any difference to the investor who is trying to make money?

Gigastrength
Gigastrength

@SniperGod
lol, if you held mint mtg cards from early nineties, you'd be rich.

Sharpcharm
Sharpcharm

@happy_sad
One gives you dividends

StonedTime
StonedTime

Me and a friend are having a competition to see who can make the most by the end of the month using papertrading. I have 100k. What should I go all in? High-Risk-High-Reward type of thing.

StrangeWizard
StrangeWizard

@StonedTime
can you do crypto or is it only "A steady 5% per annum" grandpa investments?

Spamalot
Spamalot

@Crazy_Nice
lol stop being such a huge fag. Its obviously about the percentage changes and annual returns. Nobody except maybe yourself is stupid enough to seriously be concerned about anything else when paper trading. Enjoy your trailer park life lmao

idontknow
idontknow

@Methshot
poorfag new to Veeky Forums wondering if I'm actually looking at an image of someone actually being in possession of $70k

hairygrape
hairygrape

@idontknow
simulator
disregard my retardation

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