Value investing is all about finding stocks that are selling well below their working capital and have the means to grow your wealth
over time. Due to the cheapness of the stocks. This does not mean that we should all do it. You need discipline and patience to create wealth in the stock market.
The key to making big money is to focus your efforts on analyzing as many stocks as possible and looking in areas where there is fear and a greater potential to
grow your money.
Where should a value investor look to create wealth?
1. Biotech
2. Artificial intelligence
3. Fintech
4. Software
5. Banks
These industries have tons of under valued stocks that have massive potential long term.
Why do they have so much potential?
It is simple, these industries are receiving massive VC investments and are going to shape the future of society. If you can find a stock where the business
is going to have a global impact long term. That's a winner, but that is not enough to make money. You need to be able to buy the stock at an attractive price
relative to the value of the stock. Your focus should be on focusing your efforts on finding invesments that have the ability to grow your money exponentially.
How do you grow your money exponentially with value investing?
It is very simple. Compound interest.
With compound interest, you can turn millions into billions and billions into trillions.
If you have compound interest working for you, you can make a lot of wealth. Like a lot.
Massive wealth.
Compound interest allows interest upon interest, combined with reinvesting dividends and you have yourself a formula for success.
If you focus on the long term aspects of creating wealth, you are more likely to succeed because making money is a long term game.
It is something that is known commonly by the quote:
" the stock market is a device for transferring money from the impatient to the patient. "
Money is transferred from those who want to make a quick buck, to those who are in it for the long term.
Value investing tips:
1. Think about owning the whole business, you are buying a part owenership of a company.
2. Buy cheap and hold.
3. The best holding period is forever.
4. Stick to your area of understanding.
5. Do not speculate.
6. Say no as much as possible, it takes time to find gems: unless you are lucky.
7. Focus on fewer investments, but higher quality investments.
What makes value investing so successful to create wealth?
Well, there is not one answer to this question but I will sum it up simply.
Focus on finding stocks that are in industries which are likely to grow and buy them at an attractive price.
If you focus on buying stocks at an attractive price and the stock is in an industry that is going to be hot. You make money.
The margin of safety:
The margin of safety is the difference between the price of a stock and the underlying value behind the stock. You want to find stocks
that are selling at a cheap price because it allows you to apply this principle.
If you are working with small money ( anything less than a billion ): you should focus on buying cheap stocks of fair businesses. If you
are dealing with big money: buy fair priced stocks of attractive companies.
From this you can conclude that buying stocks is about finding the right stock based upon your personal needs.
If you want to get rich quick, maybe a technology stock.
If you are in it for the long term, maybe a bank.
etc.
Value investing is all about buying and holding cheap stocks and letting the market correct it's mistakes.
You see, the stock market miss prices stocks all the time and it is easy to spot this but it can be hard to be right.
You have to not let volatility influence your emotions.
So, if you stocks up: it shouldn't matter and if it's down. It should not matter.
Focus your efforts on finding the stocks that are going to cater towards your financial needs.
How do you make the big money with value investing?
Getting straight to the point: you basically do the opposite of what the typical investor does.
A contrarian approach leads to making big money because you are going against the consensus. It is not easy, but it is simple.
What is the process?
Find stocks that are at an attractive price, have a competitive advantage and browse through thousands of stocks for the long term.
Do this for an extended period of time and be patient and disciplined in your search for a stock and you can create the big wealth.
The key is to wait as long as you can before you invest in a stock. The process is simple, but it requires tons of discipline.
Since you will feel inclined to invest after a long search for a good investment. You have to be able to say no and say it to
a lot of stocks. The more stocks you can look through, the bettter. You will find as time goes on, you will only get better and better
at finding gems. It may initially take months, eventually you'll find ways to shorten the process and make big money in the stock market.
Focus your efforts on finding stocks that are right in your sweet spot.
It does not happen over night but if you love the process. You will increase your chances of succeeding.
Successful invesitng is about loving the process of reading annual reports and analyzing data and making simple calucaltions.
Note: simple caluclations.
You do not need any fancy math to do well in the stock market, simple math will do. A 100 IQ investor can do very well in the stock
market.
Focus is also important, you have to be able to focus your energies in one direction. If you are easily distracted, you decrease your
chances at succeeding the stock market.
To conclude:
Value investing is simple and it is about finding cheap stocks relative to their future cash flows, whilst finding stocks that
have strong future prospects.
Much love and respect,
Jagdip
over time. Due to the cheapness of the stocks. This does not mean that we should all do it. You need discipline and patience to create wealth in the stock market.
The key to making big money is to focus your efforts on analyzing as many stocks as possible and looking in areas where there is fear and a greater potential to
grow your money.
Where should a value investor look to create wealth?
1. Biotech
2. Artificial intelligence
3. Fintech
4. Software
5. Banks
These industries have tons of under valued stocks that have massive potential long term.
Why do they have so much potential?
It is simple, these industries are receiving massive VC investments and are going to shape the future of society. If you can find a stock where the business
is going to have a global impact long term. That's a winner, but that is not enough to make money. You need to be able to buy the stock at an attractive price
relative to the value of the stock. Your focus should be on focusing your efforts on finding invesments that have the ability to grow your money exponentially.
How do you grow your money exponentially with value investing?
It is very simple. Compound interest.
With compound interest, you can turn millions into billions and billions into trillions.
If you have compound interest working for you, you can make a lot of wealth. Like a lot.
Massive wealth.
Compound interest allows interest upon interest, combined with reinvesting dividends and you have yourself a formula for success.
If you focus on the long term aspects of creating wealth, you are more likely to succeed because making money is a long term game.
It is something that is known commonly by the quote:
" the stock market is a device for transferring money from the impatient to the patient. "
Money is transferred from those who want to make a quick buck, to those who are in it for the long term.
Value investing tips:
1. Think about owning the whole business, you are buying a part owenership of a company.
2. Buy cheap and hold.
3. The best holding period is forever.
4. Stick to your area of understanding.
5. Do not speculate.
6. Say no as much as possible, it takes time to find gems: unless you are lucky.
7. Focus on fewer investments, but higher quality investments.
What makes value investing so successful to create wealth?
Well, there is not one answer to this question but I will sum it up simply.
Focus on finding stocks that are in industries which are likely to grow and buy them at an attractive price.
If you focus on buying stocks at an attractive price and the stock is in an industry that is going to be hot. You make money.
The margin of safety:
The margin of safety is the difference between the price of a stock and the underlying value behind the stock. You want to find stocks
that are selling at a cheap price because it allows you to apply this principle.
If you are working with small money ( anything less than a billion ): you should focus on buying cheap stocks of fair businesses. If you
are dealing with big money: buy fair priced stocks of attractive companies.
From this you can conclude that buying stocks is about finding the right stock based upon your personal needs.
If you want to get rich quick, maybe a technology stock.
If you are in it for the long term, maybe a bank.
etc.
Value investing is all about buying and holding cheap stocks and letting the market correct it's mistakes.
You see, the stock market miss prices stocks all the time and it is easy to spot this but it can be hard to be right.
You have to not let volatility influence your emotions.
So, if you stocks up: it shouldn't matter and if it's down. It should not matter.
Focus your efforts on finding the stocks that are going to cater towards your financial needs.
How do you make the big money with value investing?
Getting straight to the point: you basically do the opposite of what the typical investor does.
A contrarian approach leads to making big money because you are going against the consensus. It is not easy, but it is simple.
What is the process?
Find stocks that are at an attractive price, have a competitive advantage and browse through thousands of stocks for the long term.
Do this for an extended period of time and be patient and disciplined in your search for a stock and you can create the big wealth.
The key is to wait as long as you can before you invest in a stock. The process is simple, but it requires tons of discipline.
Since you will feel inclined to invest after a long search for a good investment. You have to be able to say no and say it to
a lot of stocks. The more stocks you can look through, the bettter. You will find as time goes on, you will only get better and better
at finding gems. It may initially take months, eventually you'll find ways to shorten the process and make big money in the stock market.
Focus your efforts on finding stocks that are right in your sweet spot.
It does not happen over night but if you love the process. You will increase your chances of succeeding.
Successful invesitng is about loving the process of reading annual reports and analyzing data and making simple calucaltions.
Note: simple caluclations.
You do not need any fancy math to do well in the stock market, simple math will do. A 100 IQ investor can do very well in the stock
market.
Focus is also important, you have to be able to focus your energies in one direction. If you are easily distracted, you decrease your
chances at succeeding the stock market.
To conclude:
Value investing is simple and it is about finding cheap stocks relative to their future cash flows, whilst finding stocks that
have strong future prospects.
Much love and respect,
Jagdip
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ONEZYPHER © LTD-2021: All rights reserved