Value investing is simple. Its definition, best described by famous investor Joel Greenblatt, rings clear:
“Figure out what a business is worth, and then try to pay a lot less for it.”
Sounds easy right?
Sure... but if it was so easy, wouldn't everyone be doing it?
Well they aren’t. And that’s because in reality it's not easy to be a value investor. It’s a lot of work!
Subscribing to an investment newsletter is basically like hiring your own analyst so you can spend your time elsewhere… like with friends and family or maybe even researching more companies (if you’re a nerd like me).
But there’s a problem.
The quality of investment newsletters varies WIDELY. The fact is, most fail to provide the value their price tag claims to offer.
A majority of publications focus on the latest stock tip, the hottest sector poised for “tectonic-shifting” growth, or the “one-and-only” dividend stock you’ll need for the rest of your life…
Now of course, like a blind squirrel, these newsletters may hit a big winner eventually -- but their value disappears as quickly as it arrived.
Taking an aggregated view, most newsletters aren’t worth their price because they:
Cover stocks that house thousands of Investment Banking analysts — providing no informational edge.
Highlight “hot” stocks — i.e. the type of stocks that show up on CNBC’s Fast Money. These are stocks that people love to talk about at cocktail parties, but that also draw in “stupid” money.
Pigeonhole themselves into one style of investing — market cap, P/E ratio, sector, etc. — often leaving low-hanging fruit for the taking because it doesn’t fit their M.O.
Refuse to dive deep into the philosophy of investing, the pitfalls, the emotional turmoil of watching stocks fall after buying — this creates an unrealistic picture of instant gains without the work.
Fail to review their losing picks and what they can learn from them — resulting in a dishonest portrayal of track records.
Now I can’t guarantee I’ll provide you with countless 20-bagger investment picks. And I can’t guarantee the Value Ventures portfolio will kick ass over the next 12-months.
In fact, any newsletter that guarantees returns is either ignorant, dishonest, or a combination of the two.
But… I can guarantee top-notch research into off-the-beaten path companies, honest and transparent thoughts on positions (both winners and losers), as well as in-depth analysis of value investing methodologies and philosophies.
The name of the newsletter has a meaning. It’s what I want this publication to be: an adventure into understanding businesses, competitive advantages, management teams and capital allocation decisions — regardless of market cap, liquidity, or sentiment.
Deep value investments can take months, quarters, or even years to play out. This is a great thing. It means if we’re right, we only need to make a few good decisions each year and watch them play out over the next three-to-five years.
But is there anything we can do in between those decisions to add alpha to our portfolio? Yes!
With Value Ventures Premium Alerts, you’ll be one of the first to know when a value stock is about to run.
Now I know what you’re thinking. Chart patterns and value investing? They go together about as well as Megan Markel and the Royal Family. But I’m tired of the refusal to not use what works because it doesn’t fit a “style”.
At the end of the day, Value Ventures cares about one thing: absolute returns. We’re value investors through and through. But that doesn’t mean we won’t use the readily available tools that could help us generate even greater returns on top of our value strategy.
We’re not trying to predict what a stock will do next. We’re not guessing and trading penny stocks or high-flying biotech names. Instead, we’re tracking inflection points and periods of consolidation. The goal is to stay out of consolidation (i.e., dead money) and get in during those inflection points.
But I get it. As a value investor the mere phrase “chart patterns” sends shivers down your spine. Keep an open mind. We’re taking the best of both worlds -- trading principles and value investment philosophy -- and combining them into one, comprehensive research service.
Each chart pattern alert features a value-based stock. Not a penny stock. Not a biotech stock. But a real, value-driven company whose intrinsic business value is worth more than its current stock price.
In short, Value Ventures Premium Alerts offer actionable value investing ideas on the verge of breaking out. This means you’ll spend more time at inflection points and less time in dead money trades.
Premium Alerts give you the following:
Value stocks on the verge of breaking out of consolidation
Real fundamental reasons why the breakout could have momentum
Our portfolio’s entries, price targets, and risk management stops for each position
All this sounds nice in theory, but none of it matters unless it’s actually worked. Let’s go through a few examples.
Remember, these alerts don’t guarantee successful trades. All it does is give us high probability set-ups to deploy cash that’s on the sidelines while we wait on our deep value stocks to reach fair value.
I sent this chart out as an alert to the Value Ventures members on January 7th.
As you can see, Nautilus (NLS) gave us a perfect six-month long rectangle basing pattern. This was also an ideal value candidate. At the time of the alert, the stock was down over 80% from its 2018 highs.
Here were the parameters I sent with the alert:
In this example, NLS reached its chart pattern price target in six days. $5,000 invested would have turned into $8,100 in just 6 days.
And if you’re not sure what those parameters above mean, don’t worry. All our new members are provided with an in-depth guide on how to understand and best take advantage of our alerts.
As you can see, SLGG broke out of a beautiful symmetrical triangle pattern on January 8th. At the time, SLGG was deeply discounted, trading near its net cash balance. Here’s what we sent out:
Five days later the stock reached its chart pattern price target. $5000 invested would have turned into $8,100 in just 5 days.
As a Value Ventures member, you’ll receive alerts like these every week. You don’t have to trade them all. Wait for set-ups you’re most comfortable with. Regardless, you’ll always have opportunities to put capital to work while you wait for your deep value stocks to reach fair value.
There’s no other service combining deep value investment philosophy with advanced charting principles.
It’s a tremendous marriage, and I hope you join us!