# Value Investing - A low risk strategy for long term outperformance



## AlexDrys (22 January 2013)

I would be interested to hear from any members of the forum who are committed value investors. 

The principles of value investing seem to me to hold as true now as they have ever held, with the principles being followed by notable investors such as Ben Graham and Warren Buffett since the beginning of the 20th century.
The stock market frequently offers up irrational prices for sound businesses and the long term investor focusing on fundamentals can profit at the expense of traders and speculators that follow the herd.

Please post your experience on this thread, or if you would be interested in attending a free seminar on the principles of value investing.

Thank you.


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## Julia (22 January 2013)

Do you really need to start two new threads on the same subject?  There are already plenty of threads covering value investing.


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## AlexDrys (22 January 2013)

Thanks Julia, I'm sure the topic has been covered in previous posts but I didn't see any that specifically referred to value investing in the title.

It would be great to hear your experience and understanding of value investing.


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## skc (22 January 2013)

AlexDrys said:


> Thanks Julia, I'm sure the topic has been covered in previous posts but I didn't see any that specifically referred to value investing in the title.
> 
> It would be great to hear your experience and understanding of value investing.




Or may be you should just post the details of the free seminar rather than being cute and coy about it all.


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## McLovin (22 January 2013)

skc said:


> Or may be you should just post the details of the free seminar rather than being cute and coy about it all.




How much is this free weekend?

It's free...

Uhuh, and when _is_ this free weekend?

It's this weekend...




Who doesn't love a free seminar!


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## white_goodman (22 January 2013)

<3 freebies..

EADC


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## AlexDrys (22 January 2013)

Most investors understand that its good to be divorced from the crowd and maintain an investing discipline, but its more difficult to actually hold your conviction when the stock price is falling.
I believe the benefit to extensive fundamental analysis is that it enables the security holder to have the conviction to hold when other participants may be selling.

But then understanding market prices is one thing and selecting businesses for investment is quite another. 
How should the investor filter between companies and entire sectors for securities worthy of their capital?

All too often participants purchase securities in the hope that someone else will pay a higher price rather than the conviction that they are buying something for less than its true value.


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## white_goodman (22 January 2013)

still reading from the sales script


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## galumay (22 January 2013)

If it smells like ham, and looks like ham....


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## brty (22 January 2013)

Alex,

This statement of yours is true of all investments, irrespective of the methodology...



> participants purchase securities in the hope that someone else will pay a higher price




You seem to attribute the above statement to technical investors, yet I am willing to bet that all value investors hope for the same thing.

I have been at this game for over 30 years and see the new, latest way of gaining from stock investment, ALL the time. Please inform us of your experiences and methodology. What do you consider "value" ? and why? Can you show us the parameters of some of your successes?

brty


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## robusta (22 January 2013)

AlexDrys said:


> I would be interested to hear from any members of the forum who are committed value investors.
> 
> The principles of value investing seem to me to hold as true now as they have ever held, with the principles being followed by notable investors such as Ben Graham and Warren Buffett since the beginning of the 20th century.
> The stock market frequently offers up irrational prices for sound businesses and the long term investor focusing on fundamentals can profit at the expense of traders and speculators that follow the herd.
> ...




As a committed value investor or maybe that should read a value investor that should be committed I would love to hear more.

Here is a link to some of my experiences.

https://www.aussiestockforums.com/forums/showthread.php?t=23106&highlight=robusta

I would like to hear about your experiences and this "free seminar"


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## Julia (22 January 2013)

AlexDrys said:


> Thanks Julia, I'm sure the topic has been covered in previous posts but I didn't see any that specifically referred to value investing in the title.
> 
> It would be great to hear your experience and understanding of value investing.



Probably best not to hold your breath.
1.  I'm not a so called value investor.
2.  I was simply curious about the nature of someone engaging in free advertising on this forum.


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## AlexDrys (23 January 2013)

Thank you for the comments in response to this thread.
My intention in posting on the site has been to share my thoughts with other investors and hopefully to assist them with their own investment processes.

The strategy that I follow could be described as concentrated deep value for the long term. Its probably easier to describe what this doesn't involve than what it does. There's no trading of a portfolio, no leverage and no short selling. Essentially the approach is to buy strong, stable companies at a large discount to objectively identifiable intrinsic value. Strong and stable entails companies with a strong balance sheet, high quality assets and barriers to entry. A policy of limiting investment risk is a focus as opposed to any concerns about market risk. Very often these companies will have become cheap as a result of behavioural factors unrelated to business fundamentals.

I have developed a facebook page as an investing resource, it includes some key value principles and some of the notable practitioners of value investing. I hope the page assists in providing a framework for your investing:

www.facebook.com/TheQuestforRationalInvesting


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