In September 2004, we founded IntelligentValue.com with a mission to assist individual and professional investors in their effort to achieve consistently outstanding investment performance using a fundamental valuation approach to selecting stocks. Our approach is unusual because we use a proprietary market-risk analysis to reduce drawdowns and enhance performance by a factor of 200-300%.
CLASSIC VALUE INVESTING
To accomplish this goal, we start with traditional value investing principles first elucidated by the ‘father of value investing,’ Benjamin Graham, in his groundbreaking tome, The Intelligent Investor. Value investing focuses on buying the stock of companies when their shares are selling at a significant margin of safety below the intrinsic value of those shares.
In the world of private business, there is rarely a reason that a going concern would sell for less than its intrinsic value, or in even more rare circumstances, its breakup value. However, in the world of companies publicly traded in the stock market, we are sometimes given the opportunity to buy partial ownership in firms at a significant discount to those values.
On a regular basis, the market dives because of investor fear related to any number of issues. It might be panic over the possible outcomes of an international border skirmish, the devaluation of a foreign currency, or reports of a glut of a particular commodity such as oil or tragedies such as 9-11. (These are all actual examples of reasons given for the broad stock market to significantly decline.)
When prices of the market, a sector or an industry fall because of a temporary fear, it creates an incredible opportunity to purchase ownership of quality companies at a substantial discount to their long-term value. However, it takes an emotionally stable investor with confidence in long-term outcomes to, as Baron Rothschild put it, “buy when there’s blood in the streets.”
We optimize the likelihood of outsized gains by purchasing ownership in publicly held corporations at those rare times when their stock is selling at a deep discount to their intrinsic value. We sell those investments when those shares are selling equal to, or at a premium to, that inherent value.
MARKET TREND IDENTIFICATION TO AVOID DEEP DRAWDOWNS
IntelligentValue.com takes classic value investing one step further by using a sophisticated computer program to generate a proprietary composite indicator that helps us determine the inflection points of market changes before their occurrence.
In this way, we can reduce exposure when periods of market weakness are beginning and then purchase a fresh set of undervalued positions when we get a signal for the start of a new rally. This program results in dramatically improved returns – far greater than the gains we can achieve without our Intelligent Market Risk Analysis (IMRA).
THE SERVICES WE OFFER FOR VALUE INVESTORS
Since our launch in September 2004, IntelligentValue.com has been a proven resource for sophisticated individual investors as well as professionals. IntelligentValue.com members get the following as part of their subscription:
1) Model Portfolios: We provide two styles of model portfolios: DEEP VALUE and RELATIVE VALUE. We provide the historical data and charts since the portfolio’s launch, closed positions with return details, and complete performance analysis. You will be able to understand the basis for each portfolio and choose the one that best fits your personal objectives. Real-time performance, clear charts, detailed statistics, and listings of the returns of each position make these model portfolios easy to use.
2) Intelligent Market Risk Analysis (IMRA): This proven market assessment tool has been part of IntelligentValue since 2006. Carefully refined along the way, the system achieves the goal of dramatically improving investment returns by minimizing losses in downturns and turbocharging portfolio gains when a rally begins. Subscribers to IntelligentValue.com get clear signals from this timing system and an update on the status of markets on a weekly basis.
Our IMRA system uses an almost foolproof method of identifying changes in market trends and optimizes our returns by purchasing at market lows and locking in profits at market tops. The result is dramatically increased portfolio returns. Over the course of a few years, returns can sometimes be doubled or tripled compared to a portfolio without our IMRA system.
3) Intelligent Stock Analysis: Our stock analysis section is where we look under the hood of the undervalued companies identified by our quantitative-analysis system. We disassemble the details of the featured company’s financial fundamentals, investigate how those financial details compare over time, and compare our featured company to other companies in the same sector or industry. We take a look at news about the company, review any significant SEC releases
4) Intelligent Value Alerts: Our informative ‘Value Alert’ newsletters focus on market conditions, fundamental value principles, the economy, or significant changes in the investment environment. We publish these editorials whenever we see an opportunity to share valuable, money-making information with subscribers.
If you are not already a subscriber to IntelligentValue.com, please visit our Subscribe Page to get a Free 15-day Trial and learn just how much you can profit from a subscription to IntelligentValue.com!