Value Investing on the ASX

Discussion in 'Share Investing Strategies, Theories & Education' started by TPI, 14th Jun, 2007.

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  1. TPI

    TPI Well-Known Member

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    Thanks coopranos, will have a look at this.

    GSJ
     
  2. Tropo

    Tropo Well-Known Member

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    It seems to me that 'value' (whatever it means) investors are not humans....If you believe it, you must be kidding yourself and me as well.:eek:
     
  3. Tropo

    Tropo Well-Known Member

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    Exceptionally good excuse !! :D

    PS - I would recommend a book "The New Market Wizards" written by Jack D. Schwager (Author of "Market Wizards").
    Excellent read (IMHO) :p
     
  4. TPI

    TPI Well-Known Member

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    Yes, coopranos just mentioned it.

    Does anyone know which of the Australian sharemarket newsletters are based on the value investing approach?

    Thanks,

    GSJ
     
  5. Nigel Ward

    Nigel Ward Well-Known Member

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    Intelligent Investor is one that springs to mind. (I.e. named after Graham's 2nd book)
     
  6. TPI

    TPI Well-Known Member

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    Thanks Nigel,

    Another one I found is Ian Huntley's newsletter.

    Any others?

    GSJ
     
  7. coopranos

    coopranos Well-Known Member

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    New Market Wizards is a second book, I cant recommend it because I havent read it but I did just get it last week from Amazon (along with a stack of others) ready after I finish the current one I am on!

    I may be mistaken, but I think Fat Prophets is another one (http://www.fatprophets.com.au/). Their offer of a free watch when you sign up really brings home their credibility too! (Actually, I think they actually have a decent track record).
    If you do like the FA approach, it may not be a bad idea to follow a newsletter like that, as they have access to all the top research and a proven track record. That way you could be in the market and learn why and how they make their recommendations along the way. I would just try to ensure that they do have a good track record and arent throwing 10 buy recommendations at you each week. You need to make sure that their model portfolio based on their recommendations is actually possible in practice. Also Van Tharp suggests (in Safe Strategies for Financial Freedom) that if you choose a newsletter, take ALL their recommendations (ie dont try and put your own rules onto their system or you will break down the integrity of their system and may get poorer results than them).
     
  8. TPI

    TPI Well-Known Member

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    Ah, 2 books, sorry I misread before.

    Thanks, that's a good point!

    GSJ
     
  9. TPI

    TPI Well-Known Member

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    And here's another book with a similar theme called "Market Wizards' Secrets" by Alan Kohler, yet to be released I think.

    GSJ
     
  10. TPI

    TPI Well-Known Member

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    IMHO the two best newletters for purist value invetors are 'Intelligent Investor' and Huntley's Newsletter'.

    The others I've looked at, eg. 'Fat Prophets' and 'Rivkin Report' appear to combine FA and TA.

    GSJ
     
  11. bundy1964

    bundy1964 Well-Known Member

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    'Intelligent Investor' is one I read as well as Huntley's reports on Direct Shares.

    Still think the acceptable securities list and looking at the LVR offered then checking that they pay a dividend regualy that is rising before going all technical and trying to pick an entry price.
     
  12. Scratcher Gillespie

    Scratcher Gillespie Member

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    Believe what?

    History speaks for itself - investors who follow a value style (ie: concentrating on the basic accounting of companies and disregarding the antics of the market, unless it presents them with great opportunities to buy and sell) ahve outperformed the general investing community - mainly for the reason of investor psychology.

    A great book to read for anyone interested in value investing is "The little book of value investing" by Christopher H Browne - fantastic and simple read with a step by step process to get you started.
     
  13. Tropo

    Tropo Well-Known Member

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    It seems to me that we know the different history.
    Some people follow stars in the sky, others follow basic accounting of companies etc.
    As long as you are comfortable with your method that's what matters.
    Happy investing! ;)
     
  14. redrover

    redrover Well-Known Member

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    Check out lincolnindicators.com.au for their retail share fund. For those who know, Lincoln Indicators are the inventors of Stock Doctor, (Dr Merv. Lincoln, former Olympian and maths guru) a value approach model used by a great many brokers. They state that the stocks included in their portfolio are based more on their individual merits rather than just conforming to the ASX 100 etc. No use having dinosaurs in the portfolio if they occupy space but not much value just 'cause they may be too big to go broke. They have growth and a distribution. Stock Doctor has been around for 10 years or more and a very good program.
     
  15. TPI

    TPI Well-Known Member

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    Any value investors out there starting to see a bit more value now...or is it early days yet :D ?

    GSJ
     
  16. Tropo

    Tropo Well-Known Member

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    Are you sure ??:p :p :D :D
     
  17. redrover

    redrover Well-Known Member

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    Check out Lincoln Indicators website for value investing plus growth. Wholesale fund did 34% last year! Lincoln are authors of the Stock Doctor trading platform which a lot of brokers use. Also just released a new retail fund from June/July 07. Worth getting their prospectus, no entry or exit fees.:)
     
  18. myclime

    myclime New Member

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    Are you a value investor?

    If the 'value investing' approach is for you, then sign up for a free 2 week trial at www.myclime.com.au/investEd.

    At the heart MyClime, is the philosophy of a true value investor: buying something only for less than its intrinsic worth.
     
  19. wdongli

    wdongli Well-Known Member

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    Where are all of value investors on the ASX

    Just feel interesting to read through this streams. It seems all of students of the value investment suddenly stopped to talk about "Value" anymore when people knew and saw the US credit crisis at the end of 2007. It seemed no value about "Value" any more or when we talked about the "Value" we really didn't understand it.

    Value is elusive even fundamental value investor agree it. So Value is one matter and the safety to play the value is another matter. If you fail in the market it is not because the value but you pay too much for the value. When you use some ratios which are used by the fundamental value investors, you could put too much bubbles into the value calculation. When your value have too much bubbles, you act as gamblers with the belief you are value investors.

    So many students suddenly stopped to post for value investment mean all of us, value or not value investors, have big problems to get the profit if not lost the shirts in the crash. We need to know what the basic of the value is and what basic rules of the value investment. We don't need to do the exactly same as other value investors let alone it is impossible. We should get our own ways when we stick to the rules, guidelines, and the skills we have got for profit at the cost we could afford.

    We need to know ourselves. We need to get the mindsets updated with clear application context. We need to know the pendulum of the market deeply at strategic and tactical levels. We need to be good decision makers first and then we could be good value or not value investors or traders or speculators or mixer of all of them.

    At last it is not important who you are but how you could put the profit into your pocket.
     
    Last edited by a moderator: 22nd Feb, 2011

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