Value Investing Strategies

Articles that improve the skills of the self-directed investor in value investing strategies.

Small Cap Value: Individual Stocks, ETFs, or Mutual Funds?

February 16, 2012

Value Stock Picks Federal Reserve money creation and signs of economic recovery are leading me to think about investing during increasing inflation. This may mean increasing my position in small cap value stocks. Investment management requires being forward looking and anticipating where potential rewards are greater than the risk being assumed. I have been overweight [...]

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Why Value Investors Should Avoid Most Value ETFs and Mutual Funds

February 7, 2012

Avoid Value ETFs and Mutual Funds Investors, especially value investors, should avoid most value ETFs and mutual funds because they are over weighted in high risk investments. As a value investor I am always looking for stocks that sell at low prices compared to their potential cash flow and risks associated with the underlying company. [...]

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Articles that improve the skills of the self-directed investor in value investing strategies.

Investment Decisions: Asset Allocation, Stock Selection, & The Dynamic Duo of Investing

February 5, 2012

Investment Decisions Investment decisions influenced properly by the concept of probability can maximize positive outcomes. In our last post, Making Probability Theory Practical for Investment we discussed how understanding probability would help us avoid short term prognosticators and concentrate on a long term investment plan. Now I want to concentrate on how investors can implement [...]

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Back Testing Validates ROEV Investment Strategy

January 26, 2012

Return On Enterprise Value Most financial planners and bloggers tell investors that passive management or buy and hold strategies work in the long run. What they fail to tell you is that the long run might be a really long time. Passive management works well in bull markets and not so well in flat or [...]

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Articles that improve the skills of the self-directed investor in value investing strategies.

How to Minimize Investment Loss with an Asset Allocation Strategy

December 29, 2011

Minimize Investment Loss In our last post, “Probable Maximum Investment Loss and Asset Allocation” , we learned how to tailor our asset allocation to our assumed probable maximum investment loss. Now we can further explore the asset allocation strategy that can successfully maneuver through the volatile times we currently live in. Investment Loss and Asset [...]

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How Much of Your Investment Portfolio Can You Afford to Lose?

December 26, 2011

Investment Loss Analysis How much of your investment portfolio can you afford to lose, is one of the most critical questions you should ask yourself when working on your risk management plan. I think most investors have been taught to invest too aggressively.  We will examine why you shouldn’t listen to the industry and media [...]

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Articles that improve the skills of the self-directed investor in value investing strategies.

Is Investment Asset Allocation By Age Rule of Thumb Valid?

November 18, 2011

Asset Allocation by Age Asset Allocation by Age is now being questioned by many financial analysts because of changing market conditions and a growing debate on valuation investing vs. buy and hold investing. Investment Rule of Thumb – Mirror Your Age The investment rule of thumb that you should mirror your age with your asset [...]

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How to Find the Value of a Dividend Stock

November 10, 2011

A dividend growth discount model provides a simple approach to value a stock with dividends that grow at a stable rate. Gordon Dividend Growth Discount Model The Gordon Growth Model requires 3 inputs: Expected dividends one year from now (D1)   Assumed Dividend Growth Rate (GR)  Your required Rate of Return (RR)                                         D1 The Value [...]

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Articles that improve the skills of the self-directed investor in value investing strategies.

What Surprises Could Send the Stock Market Higher?

October 4, 2011

Contrarian Investor I am a contrarian investor by nature. I believe my skepticism is a major reason I have been a successful investor. I’m always asking “What can go wrong?” This is particularly true when stock or bond valuations are high. Most investors allow the culture or crowd to affect their emotions and cause them [...]

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Carnival of Value Investing – Transition Edition

September 25, 2011

I want to thank Shailesh Kumar at ValueStockGuide for helping me get started.  I have named this the Transition Edition because I have decided to make some big changes to the carnival including greatly expanding the scope and going to a weekly format.  Starting next week the new name of the carnival will be “Self-Directed [...]

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