(A)  What is Value Investing and how did Value Investing evolve?

Value investing is not a new idea. Value investing arose from the work of Columbia Business School professor Benjamin Graham – although he never used the term .

He developed his ideas about successful investing during the Great Depression and co-wrote, with Columbia colleague David Dodd, the classic 1934 text, Security Analysis. He followed this 15 years later with The Intelligent Investor.

Click on the link Secrets of Warren Buffett (What is Value Investing Part 1 of 4) to read more about Benjamin Graham’s

These two books set out the foundations of what is now known as value investing.

Click here download a copy of our “The Intelligent Value Investing Notes”.

(B) What is Value Investing ? 

Value investing is an investment approach that relies on buying securities below their intrinsic values. There are two main concepts; one is the Intrinsic Value and the other is Margin of Safety.

Value Investors own a share in the underlying businesses, not stocks. Value investors look at the fundamentals of the company that the stock represents.

Intrinsic value is the value of the underlying business – if we are talking about stocks – that can be calculated through carefully analyzing the business looking at all aspects of it. If there is an intrinsic value exists for a company then there is a price tag we can put on its shares as well. Value investing is looking to buy shares well below its intrinsic value.

Margin of Safety is the difference between the buying price of a stock and its intrinsic value. Value investors are insisting on buying stocks well below their intrinsic value, where the margin of safety is 20%-30% or even more. This concepts is protecting them from poor decisions and market downturns. It is also providing a room for error, when calculating the intrinsic value.

Value investors wait for this golden opportunity to buy the stocks at a discounted price.They know the company has future growth potential. They then sell their stock when the market price is overvalued, earning them a nice big profit.

(C) What was Warren Buffett’s Approach?

He started out using Graham’s methods and was very successful but eventually, Buffett would start investing in the way that people would most closely associate him with in modern times – investing in great businesses that can earn great returns on capital over the long term. But, that would be a development that would take the introduction of a certain Charlie Munger and Philip Fisher, two people who would really reshape the way Buffett thought about investing.

Click here to read more

Secrets of Warren Buffett (What is Value Investing Part 2 of 4)

 Secrets of Warren Buffett (What is Value Investing Part 3 of 4)

Secrets of Warren Buffett (What is Value Investing Part 4 of 4)

(D) Can Value Investing Really Work In Singapore?

Value investing, at its most basic core, is the act of figuring out the real economic value of a business. A decision to invest would then hinge on whether the market price of the business is sufficiently lower than its real value. That’s why shares with low valuations, as a group, tend to fare better than shares with high valuations – with low valuations; chances are good that a business’s economic value is higher than its market price.

Emotions are part and parcel of human nature – we cannot take it away from us. And so, as long as the markets are dominated by human actions, there’ll always be room for value investing to work its magic.

Click here to read more:  Can Value Investing Really in Singapore?  

(E) Types of Value Investing In Singapore

Value Investing was not a popular investing methodology in Singapore many years back and it’s only about 3 – 4 years ago when it becomes a topic people talk about.

What is the best investing method? If you have asked yourself these questions before, click here to read this article types-of-value-investing-in-singapore

(F) Is Value Investing right for me?

There are different styles of Value Investing, but there will be at least one style that will fit your needs.

If you have zero Finance knowledge and wish to learn the Warren Buffet’s Style of Investing, This is the Place for You.

• You will be taught the 8 step-by-step VIA Funnel to identify true gems from the rest of the stones. You can make money from the stock market, if you have a proven methodology of filtering the gems from the thousands of stones within any stock exchange
• You will be trained a Set of 5-Step Formula when to enter the stock market and buy these stocks.
• VIA offers 4 Proven Ways to shortlist potential stocks.
• VIA provides 3 Exit Points and this completes the blueprint of an intelligent investor
• Furthermore, the large community and support here is simply amazing. You get to network with people of the same interest with different backgrounds!

Download Our FREE Investment Guidebook and start investing today (Get a 5-video investment course BONUS). Click << HERE>>.

If you have always wanted to take a value investing course in Singapore, and know why thousands of people across 11 cities in Asia are taking our Value Investing Programme, please feel free to register for our Upcoming Free Value Investing Masterclass by clicking <<HERE>>.

Improving lives through Financial Education & Technologies