Welcome to Quality Value Investing club. We want to bring together investors, that embrace the value investing philosophy. Many famous investors with excessive long-term returns are value investors, which confirms the power of these mentality, ideas and strategies.
Value Investing, is not about buying “value”, instead of “growth” stocks. It is a philosophy of investing which considers stocks as real pieces of businesses. When we buy stocks, we think of us as the owners and expect the earnings and dividends the companies will contribute, in the same way that we would expect the rents from a real estate property.
Value Investors disagree with what CAPM and the efficient market hypothesis suggest, that risk equals volatility. The risk we recognize is the risk that comes from permanent loss of capital. For us, the “margin of safety” and buying below intrinsic value is what reduces risk. Price always matters.
Of course, there are many different sub-strategies. For example, some buy great businesses in good prices and others so so businesses in great prices. Some diversify a lot, while others concentrate. Some sell when the stocks reach the intrinsic value and rotate among the greatest bargains, while others buy and hold forever.
However, we all share the same basic philosophy, and we hope that this can be a great place to learn from each other and have fun discussing all those. Even if you have not adopted the value investing philosophy, you are very welcome to come and learn more about it.