Tips
Looking for glamourous investments? Stocks of the "future"? Triple figure gains from the Stock Market? Look elsewhere.
I don't care if my investments underperform the market for a few months, In fact I like it when shares in great companies fall to bargain prices. Why? Because I am a value investor.
I have been reading about the investing world for 7 years and investing my own money for 5. I know this does not sound impressive, but I am 19, and have read the financial papers since I was 12.
I remember investing my first £500 that I earned from working at £3 per hour, following the advice of a tipster in a magazine I was reading. The share price crashed through the floor and I lost all of my money. Ironically by far the best £500 I have ever spent.
I was pretty gutted, but determined to learn more about why I failed and how to succeed on the stock market. My desire for success led me to value investing- buying shares for less than they are intrinsically worth and I believe this is the only way an individual with a modest budget like me can compete with the big dogs of the city of London.
I probably sound a bit arrogant and pretentious from this introduction, but I have made plenty of mistakes in my investing career- I am still learning and I am fiercely self critical.
Moderate gains do not sound very exciting at all- yet if delivered over a number of years the gains become considerable.
A 15% return upon an annual basis sounds very much achievable, yet deliver it for 5 years, and an initial investment of £1000 has doubled.
Deliver it for ten years, and £1000 has become £4000.
Deliver it for twenty years and £1000 has become £16,000
The greatest value investor of all time, Warren Buffett' Berkshire Hathaway has delivered an annual increase in book value of his company, Berkshire Hathaway, of 20.3% over the last 44 years. (Shares in Berkshire Hathaway trade at well over $100,000)
I like trying to beat the market. I love picking up great companies for much less than they are really worth. Equally I like the returns it generates – If you like the sound of what value investing has to offer then please have a look around my site. I share all of my thoughts and research with my readers.
My best investment of all time cost me less than £10- yes I know this sounds like a cheeky plug but if you want an introduction to value investing then you need to read the Intelligent Investor by Benjamin Graham- the best investing book ever written. No arguments.
Try reading some value investing books!
Good Value Shares is pleased to announce two new sites dealing with commodity prices - price of gold per ounce today and silver spot prices.
If you would be interested in reading about pricing strategies, then please click the link.
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