Introduction

Value Investing is an investment the strategy of selecting shares that are trading at less than their intrinsic value.  In other words, Value Investors actively look out for shares of companies that they believe have been undervalued by the market. 

Value investors believe the market overreacts to both positive and negative news, resulting in stock price movements that do not correspond with the company's long-term fundamentals.  The result is an opportunity for Value Investors to profit by buying when the share price is low.  

For the history of Value Investing, see our articles on Benjamin Graham and Warren Buffet.

This article lists (in our opinion) the best articles on the web to more fully explain and expound on the theory of Value Investing.

Beginners

1.    Investopedia

This is an excellent beginner’s guide to all aspects of investment and trading.  It offers definitions of the various terms in layman’s language, and also offers a comprehensive description of the theory of Value Investing.

2.    Buffett Secrets

A very good website detailing how Warren Buffett made his money.  Buffett uses the basic principles of Value Investing, so this is a good introduction to the principles that Buffett employs in his investment strategy.

3.    Wikipedia

Wikipedia does not disappoint in its coverage of the basics of Value Investing.  The benefit of Wikipedia is that it contains links to other terminology used in the parlance of the investment world.

4. about.com

Excellent introductory articles about Value Investing, as well as all sorts of information relating to investing in general. 

For Value Investing, go to: http://beginnersinvest.about.com/od/valueinvesting1/Value_Investing.htm

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Advanced

1.    Columbia Business School Walter Schloss Archives

A wonderful source of information on a lot of the successful value investors as well as worthwhile articles

Columbia Walter Schloss Public article archive

Columbia Walter Schloss Public video archive

2.    Tweedy, Browne Company LLC

Tweedy is probably the oldest fund management company that practises value investing.  They have a lot of really good papers and speeches on their website.

Tweedy Brown Papers and Speeches

The paper "What Has Worked In Investing" is especially worth reading.

3.    Davis Funds

Davis Funds is a successful third generation fund management company.  A really good article called “The Wisdom of Great Investors” is a worthwhile read for any investor.

4.    Tilson Funds

Whitney Tilson is a value based hedge fund manager.  His website is a valuable collection of value investing articles and excellent summaries of the Berkshire annual meetings.  He regularly writes for publications like the Financial Times and Kiplinger.

5.    Zulauf Asset Management

A Swiss asset manager and member of the yearly Barrons round table discussion group.  Good investing articles and market outlooks. In English and German.

6.    Brandes Investment Partners

A very good value fund management company that publishes excellent investment research.

Other interesting Value Investing articles can be found by clicking here

P.S.   A company the market forgot about

Last month while running my stock screeners to find attractively valued companies I stumbled onto something that will interest you.

As you know I look for the absolute cheapest companies in Europe, the UK and the USA, irrespective of size and market they are trading on.

This time however I discovered “a gem lying in plain sight”.

It’s a really large company (that you can buy nearly anywhere) that has gotten really cheap. But is so large and obvious that it is completely overlooked by the market.

Something like a diamond lying on the sidewalk, you do not believe that it is a diamond and thus ignore it as you walk by.

Another reason I like the company it that it recently got rid of quite a large millstone around its neck, another factor that should help it perform better in future.

I immediately analysed the company and recommended it to my subscribers.


To find out how you can also get ideas like this monthly click here.