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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (64996)	9/29/2020 10:20:11 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78774

"I think great value stock stories are (for example) where a company has lots of properties on its book at cost, but the properties have appreciated tremendously in value, and the shares don't reflect the actual value of the owned property." Ok, but in my experience that that's such a rare case that it doesn't serve to be a typical example of a value stock. That is, how often does the small, outside investor have access to actual cost values of the properties that the particular company owns or their current value? For me, I've only come across that when some analyst has made the determination and I just go along with his analysis, but not really knowing. And because I don't myself really know, I dont commit a lot of $ to the investment. I'm generally sticking with the "standard" definitions for value stocks for companies I'm looking at that have earnings and history. For tech, that's often not possible. I use operating cash flow to market value there, sometimes.

To: Elroy who wrote (64996)	9/30/2020 5:10:15 PM
From: bruwin	1 Recommendation Recommended By Sisyphus Read Replies (1) \| Respond to of 78774

"To invest in a value stock it should also have a "story" that convinces you the share price will go up in the future" Hmmmm .... I wonder .... Seems to me folk make this Investing business a bit too complicated. Think of it this way .... You start up a business where you sell something, either a Service or a Product of some sort, and your business rakes in Revenue ... What are you aiming for in your business ? I'd say you want to make as BIG A PROFIT AS POSSIBLE, otherwise what's the point. So how do you "measure" that Profit ? .... It's what's left over from the Gross Revenue AFTER all Deductions and Costs .... the BIGGER that Number the BIGGER YOUR PROFIT, especially if it takes place on a consistent basis. And what happens to that PROFIT, after possibly giving some of it to Shareholders ? It goes into that "Pot" in the Balance Sheet called "RETAINED INCOME" .... And the Bigger that grows the more capital a company has to expand, to buy more stuff to expand the business, to buy properties to rent out and earn an income, to buy more subsidiary companies, if you want to, to expand and grow the business, etc, etc .... BALANCE SHEET ---> Share Capital + RETAINED INCOME = Total Assets - Total Liabilities. If RETAINED INCOME GROWS appreciably, Total assets continue to appreciate relative to Liabilities, which, I'd say, is a Good Thing ..... therefore, seems to me, that the RETAINED INCOME NUMBER is a very important component of your Profit Accumulation, together with what FEEDS THAT RETAINED INCOME AND WHERE IT COMES FROM ........ So one could think of it as a "3-Point Plan" ...... Increasing GROSS REVENUE coming in, Increasing BOTTOM LINE left over, Expanding RETAINED INCOME available to grow the business. I'd say that if you see that within a company's ongoing Financials you will very likely see its Share Price moving in a Positive Direction .....