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 Benjamin
Graham and Warren Buffett said that the three most
important words in investing are MARGIN of SAFETY.
To learn more about this vital concept, see my new book
The Conscious Investor: click here.
The book looks at the stock market methods of Benjamin Graham, John Burr Williams, Warren Buffett, Robert Wiese, Joel Greenblatt, James Tobin, William O'Neill, Maynard Keynes, James Ohlson, Bruce Greenwald, Kenneth Lee, Robert Haugen and others.
The valuation methods include net current asset value, discounted cash flow (DCF), dividend discount, payback, magic formula, residual income, CANSLIM, q-theory, PEG and PEGY ratio, benchmark, option valuation, expected return and many others. |
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Letter from
Warren Buffett
I
received a letter from Warren Buffett stating that
he enjoyed an article that I wrote.
To
read the dedication to the letter and the investment
article enjoyed by Warren Buffett click
here.
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Valuesoft has Five
Times the Forecast Accuracy of Analysts
The
ability to forecast earnings lies at the heart of
finding great companies selling at low prices that
will make you money year after year. A new test in
Valuesoft forecasts one-year
earnings with an average absolute error of 18%. In
contrast, analyst forecasts, even for just one quarter,
have an average absolute error of 91%. Click
here for full details.
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The Hidden
Desire of Investors
What is the most important question
for a stock —market investor?
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Whether the market is undervalued
or overvalued? No!
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Whether interest rates will
go up or down? No!
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Whether a particular company
is undervalued or overvalued? No!
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Whether you should buy ABC
or XYZ? No!
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Whether Joe Bloggs, the famous
analyst, says it is a great buy? No!
All these questions are useless!
There are whole office buildings full of people pumping out
answers to these questions. They are not trying to mislead
you. They are just trying to supply answers to these questions
because people keep asking them and are willing to pay large
amounts of money for the answers.
Even if they could be answered,
the answers will not help you reach your financial goals.
Why? Because they are the wrong questions. Click
here to continue.
Warren
Buffett
and the Valuesoft Story
Ever since reading about
Warren Buffett's success in the stock
market year after year, I have had two goals. The
first was to understand how Buffett does it. The second
was to describe his methods in clear terms so that
anyone can do it.
Suppose you invest $10,000
in the stock market for an annual return of 30%; at
the end of 10 years you will have over $130,000. If
each year you added another $10,000, at the end of
this time you would have the incredible amount of
$550,000.
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Of course, if you were like me,
you probably think returns of 30% in the stock market are
impossible over a long period of time.
This is not the case. When you
read about Warren Buffett you learn that he has been averaging
around 30% in the stock market not for 10 years, or 20 years,
but for 47 years! Not only that, he has been doing it with
conservative, long-term investing.
To get started on understanding
the investment methods of Warren Buffett I read everything
that I could lay my hands on that was written by Warren Buffett
or about him. After some months, I realized there were two
major problems.
The first problem was that, even
though Buffett has written extensively on his general principles
and methods, he has written almost nothing about the specific
details. The second problem was that Buffett has a phenomenal
memory. I don’t. And probably you don’t either.
He could memorize page after page of financial reports and
analyze them at the same time. ...
After years of research and
testing, I have developed the tools so that now anyone can
begin to analyze stock market companies in the style of Warren
Buffett.
I call the final solution The Valuesoft
Investment System. Click
here for more details.
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Warren
Buffett had a dream. He had tried all the investment methods
— charting, technical analysis, listening to tips.
But he dreamed that there must be a better way. He found
it. The result is around 22% per year for over 40 years
and wealth of over 30 billion dollars.