Welcome Guys,

To the 1st Chapter of Value Investing Course

“Let’s Start Investing”

What Is Value Investing

Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their intrinsic or book value.

In Simple Words, In Value investing we are trying to know the actual price of any stock. It focuses on the value of company.

Price – Price is what you pay to buy a share.
Value – Value is what you get after selling the share.

Those who know how to find Valuable Stocks in market are known to be VALUE INVESTORS.

VALUE INVESTOR

Value Investor are those who invest in Underrated Stocks/Business to get high Returns.

Now the question arises is that How will you become a Value Investor?

There are few Steps help you in becoming a Value Investor-:

• Buy Valuable Businesses, Not Stocks.
• Passionate To know the Company.
• Invest in Companies You Understand.
• Find Well-Managed Companies.
• Don’t always Go with Flow.
• Ignore checking the Market 99% of the Time.

Buy Valuable Businesses, Not Stocks.

This means Investors not buy stocks depending upon their Stocks trends in market and market unwanted noises.Instead,Investor must look companies fundamental of that stock.Investors can make money trading trends but it involves many analysis than value investing.Buying and Selling of trends can pay earlier profits.

But value investing give more profits because good things take time to built.

Passionate to know the Company

You should not pick a company base on market news.You must love the business you’re buying,you must be passionate to know everything about company.They look different when you check their price to earnings,price to book and price to share(EPS) ratios.

Invest in Companies you understand

If you don’t understand how company works then don’t invest in them.This is the one of the main reason in Good Value Investing. You must predict the future of company according to their products and must check value they given to their Consumers.

Find Well-Managed Companies.

Management and team work can make a huge difference in company.The biggest asset of a business is their workers.

Before Invest must check these:-

• Integrity
• Intelligence
• Energy

According to greatest Value Investor Warren Buffett

Don’t Always Go with Flow

Don’t go with flow in invest never go what people say always do your own analysis because its your money what you investing.Take more and more time to find the stocks to invest because after that you have to wait and see how your money grows.

Ignore Checking the Market 99% of the Time.

The market only matters when you enter or exit a position — the rest of the time, it should be ignored. If you approach buying stocks like buying a business, you’ll want to hold onto them as long as the fundamentals are strong.

More Important Tips in Value Investing-:

In value investing firstly we have to calculate the intrinsic value (actual value) of the stock by using above points.Because sometimes Stock prices is overvalued.

So Why the stock of any company is undervalued of overvalued? 

Because in share market the price of any stock is divided by people (peer to peer) sometimes the people over react with the stocks (emotional trading) because of this the price of stocks fluctuate (it increases or decreases), so the intelligent investor takes advantage of this and makes money because in long term the stock price will comes to its actual value and fluctuate according to company’s growth.

Example– In 2008 the financial crises most of growth seeking companies also faced losses and their share price became very low (undervalued).

-So, the value investor always waits for the right time like crises, bubble burst etc. So they can buy the shares of quality companies in low price or make profit in long term like Warren Buffet, Carlus slim, Radhakrishan Damini , Rakesh Jhunjunwala etc.

– This strategy is too simple but you have to be patient.

– You can make a lot of money by value investing in crisis and when a country is in recession but the main problem is most of the people don’t have money in those situations, so remember don’t invest all of your money. Save some money for those situations.

Thanks for Reading….more in next chapter.

Next Chapter

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Introduction of Course

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