Value investing

What is Value investing?

Value is an approach to share investing that has its own performance statistics which are quite independent of the market. Value investors concentrate on certain individual shares and ignore what is happening to the market; but over the long term they will very likely do far better than it. There are no guarantees, but that it is the long term experience of many successful investors. A large number of value investing fans will have experienced this success even over the last few years during which for the most part a serious bear market was in existence.

Value is probably the single most consistently successful investment strategy around and consistency is critical to success. Anyone can get lucky at times but if this cannot be repeated over the long term you will end up doing badly.

Value is based on an almost childishly simple concept. The concept that, if you buy something to trade which is cheaper than similar things, then you will probably do well.

So why doesn't everyone do this if it is that simple?

Because, it requires going against the consensus opinion at the time. Going against the crowd.  Most people in life cannot face going out on a limb, being isolated, taking a chance that others are not taking, lacking the comfort that the presence of many others provides. It appears to be less risky to follow others. With investing though, the reverse is frequently the case, going into a share for no reason other than just because everyone else is doing so is often a recipe for disaster.

Each issue of the Pink Investments will feature specific shares for value trading and for long term high yield portfolios.

Compared with the institutions, who own most of the market, the private investor is already in a minority precisely because they are private investors and consequently can never be part of the crowd. On top of that, the value style appeals only to a minority of private investors who have the personality for it, so value players are a minority of a minority.

Value investors are the few. As long as you possess, or are willing to acquire the necessary aptitude for it, you too can be one of the few and the Pink Investments will help you get there.