# Hello - yall... Value investors out there?



## Value (Jul 31, 2015)

Hello All, 

My name is Simon, I'm a 31 y old guy from Montreal. 

Basically, I'm here to meet some new people and grow a circle of contact with like minded people to share investment ideas, knowledge and intel. I would love to have a few good friends with the same kind of investing strategy to share and get different points of view about investing options. If anyone is opened for this, drop me a PM, we can exchange phone number and maybe regularly share ideas.

I've been reading your posts for the past 8 months as I've been progressing in learning the art of investing. I've been meaning to registered, but was not serious enough about investing to get to it... However, things have changed and I want to dive into it now.

A bit more about myself... I've always been into money and accumulating wealth. Since I could remember, it's been a little obsession of mine. I would always pick the pennies I would find on the floor and as a kid would spend my days just collecting empty cola cans to cash them in. I'm quite stingy and live bellow my means... This as allowed me to accumulate 150 000$ so far. I also work hard and have 2 jobs, one in real estate and one in IT. 

My first experience with the stock market has been quite negative... When I was in high school, my mother was thinking it would be a good idea for me to get some stocks... Hey, these cool IT company just kept going up... That when I put about 4k into Nortell Networks... that was my entire 15-16 years old life savings... Needless to say, it was quite traumatic when I lost it all and I have had a literal aversion to the markets ever since...

I was looking to put my wealth into the real estate market (revenue property), but it seems pretty obvious that we are at the end of a bull cycle and I will not put it in this asset class.

I've opened an account with questrade in early this year to take advantage of the collapsed oil prices and I've been slowly learning about the markets since and taking a liking to it.

I would say that I am definitely a value investor... I believe the best way to go with the market is to find undervalued assets and wait for them to come back to a fair price... To take advantage of the human psychology and use it for some nice gains...

Hope to get to know some of you better.

Regards,

Simon


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## JakeSpeers (Aug 12, 2015)

I tries sending you a pm, but it wouldn't let me.. maybe I don't have enough posts yet!


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## Just a Guy (Mar 27, 2012)

I'd consider myself a value investor, however I take it one step further and only invest in companies I know. I also apply value investing to real estate.

While I generally agree that real estate is too high, the market doesn't work on fixed pricing like the stock market. I've found some of the best deals right in the middle of a booming market. I believe I was one of the only value investors looking at those times which meant I had little competition. Properties you buy for revenue are generally different from ones people buy to live in. If people need/want to sell it allows you to pick up deals no matter what the economic conditions.

Of course, I think many more properties will soon come on the market as it starts to collapse, but then interest rates may go up and more competition from other investors may show up.


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## tygrus (Mar 13, 2012)

Value investing is dead, there is only hold your nose and buy and go away for 10 years, if you can stomach it.


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## Spudd (Oct 11, 2011)

tygrus said:


> Value investing is dead, there is only hold your nose and buy and go away for 10 years, if you can stomach it.


I think there are still a few value gems out there, but you do have to look hard.


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## Pluto (Sep 12, 2013)

Hi Value/Simon. 

You are doing well with your current methods, so don't be too eager to do something new. Your experience with Nortel is a good one, and may save you from worse experiences in the future. Very fast growing companies are usually a trade, not an investment unless they have a way to hold off competition. But even then, most of them get way overpriced and should be sold before your profit melts away. 

I'm interested in the fact that your Nortel experience was near a market top, and now, you get interested again some 6 years after a major market bottom. I'm wondering what has got you interested now? because projecting the past 6 years performance into the future, is not a good idea. 
Appreciation potential of stocks is not really good right now. 
Tip: Go to your local library and ask for The Investment Reporter at the reference desk. Have a look in there for some good ideas, and store them away for a time when appreciation potential is better. 
And while you are at the library, check out the Value line investment survey. 
http://www.theburningplatform.com/2014/01/29/value-line-appreciation-potential-lowest-since-1969/


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## Janus (Oct 23, 2013)

tygrus said:


> Value investing is dead, there is only hold your nose and buy and go away for 10 years, if you can stomach it.


All the value investors I know have annihilated the market over the last 5 years. There's quality value, and then there's deep value. The quality folks have killed it recently and over the long term.

Deep value works too, it's just harder in my opinion. "There are a lot of ways to get to heaven" in investing.

@Value, I'm a professional value investor working at a firm that focuses exclusively on such a strategy. Glad to have you at CMF.


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## Feruk (Aug 15, 2012)

You contradict yourself OP. You say you're a value investor and then immediately mention wanting to take advantage of the collapse of oil prices. I'd consider that speculating which is the opposite of value investing. Not only do you have to be right on timing of the commodity, but you also have to avoid the companies that will be long bankrupt when the price starts to rebound (if it ever does). You might be headed for Nortel 2.0 losses.


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## GoldStone (Mar 6, 2011)

Janus said:


> All the value investors I know have annihilated the market over the last 5 years. There's quality value, and then there's deep value. The quality folks have killed it recently and over the long term.


What is quality value? 

Is it the same as underpriced growth? As in, some companies look expensive on the surface if you take a casual look at the regular value ratios (p/e etc). But they can be actually quite cheap because of the long runaway of growth in front of them.

Or did you mean something else?


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## Janus (Oct 23, 2013)

GoldStone said:


> What is quality value?
> 
> Is it the same as underpriced growth? As in, some companies look expensive on the surface if you take a casual look at the regular value ratios (p/e etc). But they can be actually quite cheap because of the long runaway of growth in front of them.
> 
> Or did you mean something else?


Well think of it as 2 schools of value investing:

*Deep value*: Benjamin Graham style, buying things that are trading for less than they're worth, even if they're crap companies
*Quality value*: Warren Buffett style, buying things that are trading for less than they're worth, but only if they're great companies with true competitive advantages that can be maintained over time. Naturally these companies are less common, and less likely to trade at a discount.


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