Are you sick and tired because your investment is still at a loss after...
The fact is, Value Investing is only applicable on 2 conditions...
But if you are already fully invested and short of cash to invest, there wasn't much you can do when the market is indeed in deep discount.
At other times though, knowing about Value Investing isn't very useful if the market is not a deep discount.
Now, value investing principles also tell us:
"Wait for it to come back up!" or "The market is irrational!"
The fact is, it is easier said than done.
It would be easy to brush off the statements I made above, if not for the fact that the market can go further down, or sideways… for a horrifyingly long time.
If you only know how Value Investing, what are you going to do when the market condition is not favorable for it?
You sit and wait. For months? For years?
Is there a better way?
Yes, there is. If Warren Buffett is the Jedi of Value Investing, then his Sith Lord equivalent would be George Soros. Most only knows George Soros as the man who rise to fame afer breaking the Bank of England in the 90's, but little is known about his investing strategy.
This course aims to dissect & conceptualize his little known investing strategies which can be applied by retail investor both in bull and bear market. Such strategies can be used on top of Value Investing strategy; because knowing both is akin to having powerful knowledge from both sides of the Force - the Light and the Dark.
You might think - "I can learn global macro trading elsewhere, why should I learn from you?"
No, you can't. Go google about the detailed explanations of George Soros' global macro trading strategy and try to find someone that not only how to implement but also GIVES you examples on its use. Also, the way I teaches about how macroeconomics related to business cycles and monetary policies, I've looked and it's not there.
"Can you make me rich by taking your course?"
No way! Not just from taking the course. Anyone who promises you that is selling snake oil.
If you learn global macro trading AND apply the lessons to make smarter invests in the future, then you have a chance.
What I can guarantee is that you will leave with some perspectives how to invest better in today's volatile market.
Warren Buffett once said he "can’t have a slight chance to live on other people’s mercy". He was right, and that's why it is so hard to value invest when the time is right, and equally hard when the time isn't right.
Although value investing advocates that you think like the owner of the business, the reality is that in practice, it is easier said than done. Know why.
The Discounted Cash Flow Method is touted as the holy grail in value investing to determine the intrinsic value of a company, and ultimately evaluating if a company stocks is at a discount. However, only doing this means you fail to see a broader picture, described in this lesson.
There is nothing more dangerous than investing by looking in the rear view mirror. If you are practicing only value investing without looking at what is happening in the world around you, you will lose money. Here is how to strike a balance by looking into the front windshield and rear mirror.
Warren Buffett famously said "Rule#1 - Never lose money, and Rule#2 - Never forget Rule#1". The fact is, if you are only a long equity investor, you will lose money regardless of the amount of value investing analysis put in. Understand why you should not take his words literally.
Traditional value investing mantra says - you should buy a business, go to sleep and the business will still make money for you in the next 10 years. That mantra is no longer true today. In fact it is foolish to do so. Understand why - don't get misled by Warren Buffett!
We should be greedy others are fearful. Agree, but this roadblock will deter you from being 'greedy' when time seems right.
Have you heard about what a value trap is? You will learn about it here, today.
Conventional mantra tells us to only invest within our circle of competency. Know why this makes people complacent and lazy.
This eye opening scenario analysis tell you why you should be extremely concerned about investment loss
Do not underestimate even small losses in your investment portfolio because they add up. Discover why.
This will make you reflect on depending solely on traditional value investing in today's volatile market. Should you embrace a change by enhancing the traditional way with a better way?
Define what is Global Macro Strategy, and why it is absolutely essential to add another layer to your value investing strategy.
A detailed example of how Global Macro Strategy works
This copyrighted infographics summarizes how to understand global macroeconomics in a clear and detailed fashion.
You will be able to construct your own long-short strategy after this lecture.
You will be able to construct your own derivatives strategy after this lecture.
You will be able to construct your own stocks/sector/region index strategy after this lecture.
You will be able to construct your own bond-interest-rate strategy after this lecture.
You will be able to construct your currency exchange strategy after this lecture.
You will be able to understand how all the strategies work with each other in a non-mutually exclusive way after this lecture.
Even if you are short of time to consume the content in this section, do read this summary
When you properly segregate the profit and loss incidents in investing, you will realize you remember the loss incident more. Why is this so? Answers here.
Many investors got it wrong when it comes to investment volatility. It is ironic when they disdain volatility but yearns for high return. Understand how you should see risk differently after this lecture.
Many investors also got it wrong when it comes to investment diversification. You will see diversification differently after this lecture.
This lecture shows you Global Macro Strategy in action, its historical performance and how this compare against Warren Buffett's Berkshire Hathaway value investing portfolio.
10 questions to test your understanding folks!
CF is an investor and a CERTIFIED FINANCIAL PLANNER™. He also runs high-acclaimed personal finance blog featured at Alltop personal finance since 2011.
CF practices an improved version of value investing by taking into account global macroeconomics and business cycle. This stems from his practical value investing experience during the 2008-2009 financial crisis
An engineer by training, CF graduated Magna Cum Laude in Computer Engineering from Multimedia University.