Thursday, January 03, 2013

Why Value Investing ROCKS!

  1. It's cheaper to be a value investor. Because you're always looking to guy great stock at discount prices, you always pay less for what an asset is worth
  2. Stock market price swings do not affect you. Unlike stock speculators who bet on whether a stock's price will rise or fall (with usually disastrous consequences), value investors on the other hand remain calm and simply pick more stock of great companies when prices fall :)
  3. You have lower risk and HIGHER returns. The lower the price you pay for for a stock, the lower your risk because the most you will lose is the price you pay for a stock.
    At the same time, the lower the price you pay for for a stock, the higher the potential returns because there is more upside for a stock's price to rise. Value investing is probably the only form of investing that gives you this advantage!
  4. These people are all BILLIONAIRES because of value investing:
    Warren Buffett - US$44 billion
    Richard Chandler - US$4.6 billion
    Howard Marks - US$1.5 billion
    Charles Brandes - US$1.5 billion
    Michael F. Price - US$1.4 billion
    Kenneth Fisher - US$1.4 billion
    Charlie Munger - US$1 billion
    Mario Gabelli - US$1 billion

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