by KenFaulkenberry | Aug 30, 2014 | Value
The defensive investor should understand the difference between prediction (qualitative approach) and protection (quantitative or statistical approach). The risky approach is to try and predict or anticipate the future. The protection approach measures the proportion or ratios between price and relevant statistics (i.e. earnings, dividends, assets, debt, etc.).
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by KenFaulkenberry | Aug 23, 2014 | Value
The Enterprising Investor has the time and experience (or proper guidance) in investing to expand the possible universe of opportunities beyond conservative investments. It is an active approach that requires constant attention and monitoring.
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by KenFaulkenberry | Aug 11, 2014 | Value
If every investor did their research and only bought stocks with a margin of safety below the intrinsic value of the company, the market would be efficient and fairly stable. But we know that this isn’t true. The market swings wildly from day to day and takes large swings in valuation over periods of euphoria and pessimism.
Graham used a parable with an imaginary investor named Mr. Market to illustrate how an intelligent investor should take advantage of market fluctuations. This is a parable about greed and fear, price and value, and how the intelligent investor will react.
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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 9, 2014 | Investment Basics
We put a lot of emphasis on buy side investment decisions. However, the sell side can make the difference between success and failure. We’re going to consider 3 reasons for selling a stock and examine two common mistakes made by value investors:
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