The 8-Step Beginner’s Guide to Value Investing Summary
The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 – The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent Profits Even in a Bear Market
Despite what the mainstream financial media wants to tell you. Investing is not an impossible game only the pros can master…
In fact, Peter Lynch, named America’s Most Successful Money Manager says that by using a reliable and repeatable investing process, ordinary investors can beat the pros.
But here are 3 big mistakes inexperienced investors make…
Mistake #1: Relying solely on social media and TV stock tipsters for their information
Mistake #2: Rushing into “hot sectors” based on fear of missing out, and buying poor companies at overvalued prices
Mistake #3: Panic selling for a loss the first time their stock goes down and missing out on gains when it rebounds to new highs
Now here’s the good news.
By using our Rational Process Investing methodology, individual investors can make consistent long-term profits in the market.
Founded on timeless principles used by legendary investors like Warren Buffett. You don’t need a degree in finance or statistics. Nor do you need to spend hours each day glued to financial media. Just 2 hours per week is enough.
This means you can get a head start by following the simple, practical advice laid out in this book. Even if you’ve never bought stocks before.
So if you’re kicking yourself for missing out on big gains. We’ll show you how to find the next Facebook, Netflix, or Amazon.
Companies that can turn a modest investment of $500 into $30,000 or more.
It’s not always some obscure technology company either. There are amazing opportunities in industries many investors consider “boring”
For example, if you had invested just $99 in Southwest Airlines when they first went public, you’d be sitting on over $82,000 today.
Here’s just a fraction of what you’ll discover inside:
- The #1 mistake inexperienced investors make. Avoid this error and you will make money – Page 16
- Forget Netflix, this company is going to be the real winner of the digital streaming boom – Page 111
- The best dividend stock in the entire 5G sector – Page 101
- How to manage your emotions when your stocks go down. This is inevitable for long-term investors. So it’s vital you know how to survive – Page 178
- Coca-Cola or PepsiCo – which is a better investment over the next 20 years? Page 121
- The “Amazon of the Health Industry”, on track for 100% gains in the next 18 months – Page 132
- The truth about “buying the dip” Why most investors fail miserably at it, and what to do instead – Page 169
- Your chance to buy “the next Berkshire Hathaway” for just 0.3% of the price of a single share of Warren Buffett’s company – Page 93
- This software company has been growing 5x faster than the S&P500 and you can still pick it up for less than $10 – Page 145
- 95% of investors have been Dollar Cost Averaging wrong this entire time. Find out why on Page 165
- If we only had $500 to invest in a single company. This is what we’d buy – Page 81
…and much, much more.
You’ll also get our free bonus video course Company Valuation 101.
Speaking of Southwest Airlines. If you had sold when share prices peaked, your $99 would be worth over $152,000. Which is why on Page 183 we show you when to sell your stocks for maximum profits.
This is not a dense 600 page theoretical textbook. It’s written in plain English and free from repetitive technical jargon. You’ll find easy-to-follow advice, plus concrete examples of everything we teach.
So even if you’ve never read a single investing book in your life. You will immediately understand how to become a successful long-term investor.
About the Author
Freeman Publications is an international network of investors, traders and economists dedicated to independent, unbiased financial research. Through our extensive experience, we uncover the best opportunities for individual investors of all experience levels to protect and multiply their wealth.
The 8-Step Beginner’s Guide to Value Investing Introduction
Excerpt. © Reprinted by permission. All rights reserved.
WHY INVEST IN STOCKS IN THE FIRST PLACE?
A question that is often at the forefront of people’s minds is: Why should I even invest in the stock market? There seem to be so many other opportunities to make your money work for you, such as real estate, buying precious metals, and even cryptocurrency.
It turns out that the latest generation of adult Americans is the least invested one when it comes to the stock market (Martin, 2018). A survey conducted by CNBC indicated that only 23% of millennials preferred investing in the stock market when compared to other options.
The reasons for this are understandable. Since 1995, the financial markets have witnessed near-constant turmoil every five to ten years. First, there was the dotcom bubble, which wiped out many inexperienced investors. Then markets were thrown into chaos by 9/11. We then experienced a period of enormous growth that culminated with the housing crisis between 2007-2009. A few lean years were then followed by a massive bull run, which ended at the beginning of 2020. As of this writing, the markets are in a volatile period, thanks to the COVID-19 crisis.
Despite this perceived instability, the stock market is not something to be avoided. The numbers are simple. Over a 50 year period between 1966 and 2015, the S&P 500 returned an annual rate of 9.69%. Which means you would have made 102 times your initial investment after 50 years. If those same returns hold over the next 50 years, a modest investment of $2,000 today will be worth $204,000 in 2070. These numbers assume you don’t make any additional investments during that time period. This is unrealistic, and with additional investments, your eventual return will be far higher.
In this book, we’re going to show you how fluctuations and market dips are not things to be feared. In fact, the strategy we recommend will help you not only ride out those dips but even thrive when turmoil strikes the markets.
How can we do this? It’s very simple. The reason many people fail at investing in the markets is that they think about them in fundamentally flawed ways. Investing in stocks is simple. This doesn’t mean it’s easy. What we mean is that the current state of stock investing analysis makes it seem as if you need an advanced degree to be able to figure out what’s going on.
We’re here to tell you that the way the markets work is far more straightforward, and you don’t need a high IQ, a specialized degree, or any secret code to ‘unlock’ them. The markets will provide you with profits as long as you’re willing to do the work and can think about them correctly.
Where Investors Have Gone Wrong in the Past
Consider how the average retail investor behaves in the market when they first get started. This person has some cash on hand, they’ve heard that investing it is a good idea because just holding on to cash will make you a victim of inflation, and the days of getting a decent interest rate on a savings account are long gone. So their first step is to head over to a financial adviser for stock recommendations or, more commonly, post in a Facebook Group asking for tips on how to invest $500/$1,000/$10,000. This is their first mistake.
The investor sinks their money into a random assortment of companies, primarily based on tips from strangers or a carnival barker on TV, and then sits back, expecting vast sums of money in return. After all, to them, the market is like a casino. It seems like a game as well when they switch on Fox Business or CNBC to check on their newly held companies. They see red and green signs moving up or down, a horizontal bar at the bottom with symbols moving right-to-left, another bar below it that moves a little slower, pundits exhorting secret strategies and killer stocks to buy and so on.
After a while, their stocks either take a dip. Or they don’t grow as fast as expected, and the investor becomes impatient. Their stock is down 20%, and they are not happy. So they decide to sell, because the guy on TV is now telling them to move into cash instead of stocks. They don’t completely understand the logic behind this means but do it regardless. Soon the market begins to rise, and they rush to buy in again, only this time a higher price than what they previously sold at.
Throughout this routine, they successfully buy when prices are high and sell when they’re low, which is the opposite of the most basic tenet of investing.
Some investors go even further and decide to try their hand at short-term moves like day trading. A few manage to do this successfully, but they are the extreme exception, not the rule. Any kind of financial trading has a significant survivorship bias. You only hear about the success stories. But for every success story, you aren’t hearing about the 10 people who failed in the same endeavor. The fact of the matter is, depending on the source, 95-99% of day traders lose money in the long run, which is why in this book, we won’t be discussing day trading or any other short-term financial strategy.
What to do Instead –Rational Process Investing
You’re going to learn all about the correct thought process to adopt when it comes to the markets and how you need to analyze stocks. This book also contains 20 stocks that meet our criteria for buying and holding for the next 20 years. All of these stocks fulfill the needs of our Rational Process Investing system, and you’re going to learn exactly why this is. For those of you tempted to just skip to that chapter, this is not a call to action to buy these stocks today, because you’ll also need to understand what is and isn’t a fair price to pay for a stock. We’ll be explaining that as well later on in the book.
In addition to all of this, you’re also going to learn about asset allocation and investment strategies. How you choose to invest your money has a direct bearing on the return you can expect to earn in the markets. A thorough evaluation of your risk tolerance is necessary, and we’ll show you exactly to do this.
Our combined investment experience over the years has placed us in the best position to help both new and experienced investors make the best decisions possible. You don’t need to overcomplicate stock investment. Follow some sound principles, master your emotions, and you’ll make more money than you’ll ever need in the markets.
By understanding the simple concepts listed here and you’ll be ahead of 95% of new investors. Successful investing does not require you to have advanced degrees in math or statistics. In fact, there is little correlation between intelligence and successful investing. Even a genius like Sir Isaac Newton famously lost his entire Fortune (around $3m in today’s money) in the South Sea Bubble of the 1700s. Newton was quoted as saying
“I could calculate the motions of the heavenly bodies, but not the madness of the people.”
What you will need for success is some basic arithmetic, but more importantly: The ability to reason, the confidence to back your judgment, and the awareness to know when you are wrong.
First let’s jump in and take a look at the very basics of successful, long-term stock market investing!
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The 8-Step Beginner’s Guide to Value Investing PDF
|Posted on||June 11, 2020|
|Page Count||196 pages|
The 8-Step Beginner’s Guide to Value Investing PDF Free Download - Epicpdf
The 8-Step Beginner’s Guide to Value Investing: Featuring 20 for 20 - The 20 Best Stocks & ETFs to Buy and Hold for The Next 20 Years: Make Consistent Profits Even in a Bear Market
Author: Freeman Publications