A Workshop That Taught Me To Invest In Value
Value Investing is an investment strategy where investors buy shares of a company they consider as undervalued. There has been a lot of talk about this investment strategy, so I was really curious to find out more. The main question I want answered is, compared to the many investing strategies out there, what makes value investing so special?
Then came a chance where Value Investing College invited me to attend a Value Investing Workshop that they organised. Value Investing College is a leading school in value investing, having branches in 23 cities and teaching its courses in 6 languages.
An Introduction To Value Investing
So, I jumped on the chance to attend the workshop from Value Investing College, hoping to uncover the secrets and advantages of value investing. I was pleasantly surprised!
For a start, the workshop was very easy-to-understand even for a complete beginner like me. The other people who attended the session with me, came from diverse backgrounds, from young people hoping to attain investing knowledge to mature working adults searching for ways to get better investment returns.
Great Speaker Sharing Valuable Insights And Experience
The speaker on that night was Borwen Neo, who possessed a range of investment experience. Borwen is an acclaimed investor who have done multiple talks and had built up a respectable portfolio generating consistent income monthly.
He shared about how value investing brought him financial freedom and wanted to allow others to have the same liberation from financial freedom. Having been mentored by Mary Buffett and Sean Seah, he learnt the investing strategies employed by billionaire investor Warren Buffett.
Common Myths About Investing
Most people think that investing is something that’s time consuming and only suited for investment professionals, which was what I thought too! However, Borwen demonstrated otherwise, and showed us how it can be really simple.
He also demonstrated that many think investing as something dangerous, abound with much risk. This has led many to think that investing is akin to gambling. But the risk is very minimal if you know the valuation of the stock and the business model that you are investing in.
To him, value investing is a strategy that anyone can adopt to get money working for you, which can lead to having a steady amount of passive income that can exceed your monthly expenditure. He advocated a way of investing that is a win-win situation; enjoyable, safe, and low risk.
Value Investing As A Process
Borwen distills the process of value investing into 3 simple steps: Assess, Buy and Cashflow.
Firstly, assess the performance of the market. Find brands that are able to perform and have a consistent track record through time. Secondly, buy products that have low risk but high returns. Lastly, determine the method of investing through various cash strategies employed. It was easy to follow through the flow of investing as he clearly elucidated how the layman can be engaged with investing.
Something really interesting he shared was that buying shares after a midst of a crisis was the best time to buy, given that share prices will be at their lowest. He likens this to an analogy where the best time to do things is after a storm has happened. I have always thought that investing should be avoided when the stock market is not doing well. So untrue!
Value Investing Is Not About Get-Rich-Quick
During his sharing, he included some of quotes that inspire his investment. One of them was this:
“When you manage the downside, the upside will take care of itself.”
This was a quote inspired by Donald Trump’s mindset towards investment. Many people worry too much about the upside and fail to consider how important risk is when it comes to investing.
Borwen emphasized that value investing is not a get-rich-quick scheme. It is a strategy for people who are looking to strategically grow their wealth over a period of time. With consistency, patience and timing, investing can be easy.
Value Investing Is For The Man On The Street
Overall, I enjoyed the workshop very much! It was very lively and I have a better understanding about value investing now.
So how is value investing different from the rest of the investing strategies?
I find that value investing’s charm lies in its ability to enable an investor to be confident with his investment and not be swayed by the positive or negative news in the stock market. Having this confidence will help you stay invested long term, at the same time reducing the amount of time required to keep track of your investments.
This article first appeared on ZUU online.
ZUU online is an Asia-based financial education online portal. Founded in Japan by Kazumasa Tomita, a former private banker at Nomura Securities, the portal seeks to fill the information gap between institutional research houses and the private investor.