Value Investing Review - The Best Way To Invest To Gain Financial Freedom
To have a good retirement, one of the things we need to do is to have a good investment plan.
A good investment plan is needed to ensure we have sustainable and steady income while we enjoy our retirement.
There are so many investment methods and plans in the market and we are sure to have been approached by financiers, insurance plan sellers, private bankers and so on various investment plan and methods.
What is investing?
Investing can be investing in assets, properties, stock and some other types of financial instruments which add value to our initial capital.
Why do we invest?
Normally we invest to earn some extra income from the assets we put our money in or any target we are aiming to have a good return.
We should have some predetermined target and returns for our investment before we decide to invest our money in the assets.
Majority of the people will invest in stock and financial instrument readily available. However, we must be wary that in everyday life, whenever we meet up with friends for some casual chats, we will notice most of the time, the conversation will be centered on how much certain people have made in the stock market today or the day before or last week.
It brought to the question on whether it was investing or trading of stocks in the market.
What Is The Different Between Investing And Trading
Investing is about building of wealth over an extended period of times through the buying and holding of stocks, bonds, mutual funds, REIT or any other financial instruments, normally this is done with the aim of taking advantages of the dividend, interest and bonus issues of shares over a period of times.
People who are investing will rely on the market fundamental of the stocks and the performance of the companies invested in.
Whereas in the case of trading, it is a more frequent buying and selling of stocks, bonds, mutual funds and financial instrument. The goal is to outperform the buy and hold investing and may set a target of certain percentage of return per month and per year
We will notice most people in stock market are actually doing trading and not investing as investing tend to be slow to see the results and people may not have the patient to see through.
The irony of this is the successful investors who are in the market are the one who are doing investing instead of trading and to value investing is one of the method most successful investors used to grow their wealth.
What Is Value Investing?
Value Investing as defined in Wikipedia is an investment paradigm that involves buying securities that appear under priced by some form of fundamental analysis.
Value Investing was first taught by Benjamin Graham and David Dodd and they stated that to value investing had three main characteristics of financial markets:.
- The prices of financial stocks are subject to significant movement.
- All the financial assets have underlying or fundamental economic value that are relatively stable and which can be measured with reasonable accuracy by any investor who is very good and follow strictly with set of investing rules and relying on intrinsic value of the stocks.
- A superior returns in the long run will show it is a good strategy to buy stocks when the market prices are much below the intrinsic value of the assets.
Why do I recommend you to learn to value investing with Value Investing College?
I recently attended a course conducted by Value Investing College over one weekend which is a boot camp of three days.
In the boot camp program, the trainers taught us on what were Value Investing and how to make use of Value Investing to growth our portfolio of investment.
The strengths of Value Investing College
- The boot comp taught the participants on the concept and theory on Value Investing.
- They gave a systematic method of using the Value Investing steps.
- They also taught on personal money management skill.
- Bootcamp also taught us on Economic MOAT of a stock.
- The Bootcamp covers the P.I.E.C. Analysis whereby we learn about profit, income of cash, efficiency and conservative approach in investing.
- The next subject we were taught was R.I.S.K. Analysis where we were looking at regulatory risk, inflation risk, science and technology risk and key people risk of the potential company we wanted to invest in.
- Other subjects covered in this course included valuation methods, management team assessment, how to identify the stocks/companies, portfolio management.
- The final subject which we would learn was on Value Investing Options Strategy
from the above subjects which were covered during the three days course, there were a lot of exercise and team discussion and play to actually worked through the theory learned and understand the underlying concept.
The trainers were very good and clear in their presentation and the course materials were very informative, clear and concise, easy to understand and grasp with the concept.
Even for those without any finance and investment technical background, it was not an issue because the course was conducted in such a way, a layman would understand easily and benefit from the boot camp.
Value Investing College also allow those who attended the boot camp to attend any subsequent boot camp without any charges, if the participants felt that they needed to have continuous learning, they were welcome to attend the boot camp again, they only needed to take care of their meals during the three days.
Value Investing College is also a lifetime learning college, once a person attended a boot camp, he or she would be a member of the college for life and would be able to tap on their support.
The disadvantage of Value Investing College
The only disadvantage I could think of is if you are a day trader or technical trader who prefer to have short term profit and relying on technical analysis of the price movement and the chart, then Value Investing College may not be the place for you to learn how to invest.
The fees may be a bit costly for someone who intends to start doing investment, however, if you think of it as a long term investment itself from the knowledge you will gain from the boot camp and the lifetime support the college provide, The investment you make in attending the course will be the best investment you have ever made.
For anyone who wants to learn investment, I would recommend attending the boot camp conducted by Value Investing College and be a lifetime member to benefit from it and happy investing.
This is one of the way to earn sustainable income for retirement which is through value investing.