by KenFaulkenberry | Jul 12, 2014 | Value
The margin of safety for an investment is the difference between the real or fundamental value and the price you pay. The goal of the value investor is pay less (hopefully, much less) than the real value. Ben Graham called margin of safety “the secret of sound investment” and “the central concept of investment”. He also devoted a whole chapter to the concept and, I am confident, placed it last because it is the most important.
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by KenFaulkenberry | May 3, 2014 | Value
In value investing, one of the most important and difficult aspects of stock selection is determining whether you have found a real value investment or a value trap. The father of value investing, Benjamin Graham, spent a considerable amount of time trying to differentiate between true value investments and value traps.
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by KenFaulkenberry | Mar 29, 2014 | Investment Analysis
Your investment analysis should include high probability value strategies that improve returns and lower portfolio volatility. The focus needs to be on strategies that are long term value oriented rather than on instant gratification.
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by KenFaulkenberry | Jan 19, 2014 | Risk
Value investing is about purchasing investment assets at prices that put the odds of above average returns heavily in your favor. Excepting an investment that is going to go bust, almost any investment can be profitable if purchased at a low enough price.
The key to successful value investing is buying assets when the perceived risk is greater than the real risk. It’s equally important to avoid assets when the perceived risk is less that the real risk.
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by KenFaulkenberry | Jul 7, 2013 | Investment Analysis
Examples demonstrate that volatility lowers your investment returns. Arithmetic and geometric averages serve different purposes and only geometric averages will accurately reflect compounded investment returns.
Even small differences in investment returns can make huge differences in results over long periods of time. The consequence is investors need to put additional emphasis on the amount of volatility they are willing to accept. It may be that you can increase your long term investment returns by taking LESS risk!
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As founder of the Arbor Investment Planner my passion is to educate and empower the individual investors to manage their own investment portfolio.
The Arbor Investment Planner is a value investment portfolio management guide for those individual investors who choose to manage their own money. I focus on ideas and concepts important to the self directed investor; but put special emphasis on risk management, value investing strategies, and proper asset allocation and diversification.
- Ken Faulkenberry