Resources To Help Become a Value Investor

Never Invest in a business you cannot understand.

– Warren Buffett

Seems like a pretty straightforward statement. Uncomplicated and a given. But it’s a rule that is very easy to forget when you are riding high on the market gains. It’s very easy to lose sight of the simple principles that will set you apart. Always and forever manifest these simple rules and principles without failure. And you would never see yourself speculating on stock picks. That said, I will share some of the resources which got me started in this wonderful journey of value investor.

First Steps towards Becoming a Value Investor(Contd.)

In my previous post, I gave a brief intro to the resources that got me started. I would like to add more to that list and expand a bit more on each of them. Let’s do the deep dive on books as separates posts.

The Investors Podcast Network(TIP) (Podcast)

Started by Preston Pysh and Stig Brodersen in 2014, this network has grown into a very fine resource to gain knowledge and insights based on their interviews with the most successful investors. The network features 5 podcasts out of which “We study Billionaires” and “Richer, Wiser, Happier” are the 2 I ardently follow. The podcasts and interviews are available on YouTube, Spotify(These are my preferred apps).

When you start off with the investment journey you will be hearing a lot of investment terms such as P/E ratio, Return on Invested Capital etc. It’s important to understand these terms because these metrics play an important role in evaluating a company. The very first podcast episodes of TIP, which are conversations between Preston and Stig(About Preston and Stig) about the Investing Basics cover these topics. I remember going over each episode at least a couple of times and taking notes. The most appreciable thing about these initial episodes are how grounded and beginner friendly they are. If you’re starting from scratch or even if you’re a seasoned investor, these guys can be your best friends.

Preston founded BuffettsBooks.com which I feel lucky to have found. This website has great introductory lessons on Stocks, Bonds, Cashflows, Financial Statements etc all for free! These lessons are also a great starting point in gaining confidence. I would highly recommend spending time on these lessons.

Why You Should Consider

The reason you should consider this channel as one of the resources to anyone and everyone is because of how balanced the content is. It’s not all about stock picks or companies performances, but also about philosophies in investing. Episodes about books on investing or entrepreneurship are eye opening not only because you are getting a great book recommendation but also on how to analyze the subject. The discussions are not one sided but balanced. They go over each chapter and talk about what they liked the most and what they do not agree with. I love all these episodes.

InvestED by Danielle Town and Phil Town(Book)

As I mentioned in the previous post, this book has changed my mind about investing and inspired me to become a Value Investor. Phil Town, a successful investor and a hedge fund manager teaches his daughter, an attorney by profession to begin her path towards financial freedom.

This book is 100% relatable to anyone who is new to the investment world and who is a skeptic towards stock market. I read this book 3 times and I would say that it motivates you towards financial freedom. With each chapter Danielle conquers her fears towards investing, losing savings to inflation with the help of her father. Phil, setups a 12 month period to teach her Warren Buffett and Charlie Munger’s investment principles 1 per month.

She would learn the principle and would practice it the whole month before moving on to next principle. So, this is not just a plan for her but also plan for you to follow along. During the course of the book which is more of a conversation between Phil and Danielle, Danielle goes on to discuss all the basic questions, doubts and fears related to investments. Phil’s teachings are very enlightening and reassuring. Also, The book also covers the drama genre by including how a father and daughter rekindle their dwindling relationship over the years.

Why You Should Consider

This book is relatable AF. I cannot get more candid. Along with the investing philosophies of Warren Buffett and Charlie Munger you will also learn how to evaluate a company and come up with an Intrinsic Value(Price of a company). It’s fun! I will go over chapter wise analysis in another post. They also have cool podcast episodes on Spotify.

• About Danielle Town.
• About Phil Town.
• About InvestED.

Yahoo Finance, Google Finance and Wall Street Journal(Resources)

Yahoo Finance, Google Finance

We don’t have to worry about the market ups and downs, stock movements etc., but it is very important to have the knowledge of what the market pulse is and also what the companies are unto. This will not only keep you aware of the current market but also helps you in attaining a Zen mode of NOT to ride with the tide.

Yahoo Finance and Google Finance are useful tools when it comes to market news, company wide and market wide news. Use these tools to your advantage in gaining important news about the companies you are interested in. Look for leadership decisions/changes that effect the firm’s future prospects. You can access these as smart phone apps or on the web as well.

Along with the news articles, these apps/websites also provide financial information of the companies like P/E ratio, EPS etc, which will help you in getting a quick glimpse of the companies stats. You might see evaluation articles or metrics for evaluation. Do not let them bother you.

Wall Street Journal

WSJ has a premium access and if you’re serious about investing, WSJ can be of great use. I’ve been using WSJ for over an year now and it gives me a great pleasure spending an hour in the morning reading articles I find interesting. The exclusive content and editor’s column do have some really interesting and thoughtful subjects. This might not be directly related to investing but might help us in forming new ideas and impressions on the market and companies.

The WSJ YouTube channel has a series called “Economics Of” which I LOVE! Have you ever been to Dollar General and felt sad on how the business is run? Have you ever felt that Dollar General as a business might collapse anytime soon judging by the looks of the stores? Watch the Economics of Dollar General. I promise you will be blown.

Why You Should Consider

Being aware of the current and future plans of industries and companies is important because it will help us in deciding which company has competitive advantage, how companies are coping with the economy and competition. As a Value Investor, we are always looking for companies in industries we can understand and which have durable advantages.

Other Resources which I love

YouTube:

• Plain Bagel – A finance channel which I feel is quite unique from other finance YouTube channels in style and format. Videos are not speculative and no doomsday predictions. Everything is based on news reports and journals.
• Rose Han – A very good channel if you like to learn about various investment options and also for great book recommendations.
• Aswath Damodaran(Dean of Evaluation) – This channel is gold for anyone who’s looking to learn corporate finance. Mr. Damodaran, Professor of Finance at the Stern School of Business at New York University posts some of his lectures on YouTube.

My Final Thoughts

As a note, none of the above links are affiliations or promotions. As an individual learning to be a Value Investor, I found these resources genuine, educative and fun. The advice/suggestions in my post or in the above mentioned links should NOT be considered as the ultimate. These resources might work for some and might not for some based on your goals. This blog post is to help anyone looking for tried and tested resources which you can use for your personal learnings. I will be adding more resources in separate posts. Please follow.

Disclaimer

The following blog posts are provided for informational purposes only and should not be considered as financial or investment advice. The content presented in these blog posts is based on the author’s personal opinions, research, and analysis of the financial markets.

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