Value Investing

Few years ago, while reading an article about various investing methods, I came across the value investment approach, which was first introduced by Benjamin Graham, and made popular by Warren Buffett. Those who are not familiar with either of them, I would recommend these books: 'The Intelligent Investor' by Benjamin Graham, and either 'The Snowball' by Alice Schroeder or 'Buffett' by Roger Lowenstein.

At the heart of the Value Investing, there is a simple concept of buying a share in the company where its shares are selling at considerably less price than company’s total net asset (generally, value of its tangible asset) value and sell the share when it reaches near to that value. Of course, there is a lot more investigation required by an investor to find out a company's valuation and where the other part of the value investment principle, of 'margin of safety', becomes invaluable.

If you would like to start investing in the UK and EU based companies or want to start your research, I found below websites are very useful:

https://www.fidelity.co.uk [Mainly mutual funds]

http://www.hl.co.uk [Mutual funds and shares]

https://www.halifaxmarketwatch.co.uk [Mainly stock markets]

It has never been easier and cheaper to start investing, especially true for the UK residents. One can start investing in the stock market (or in bonds, gold, etc. for that matter) with as little as £25 per month with low management fees.

Some of the UK based Mutual fund managers I follow are:

http://www.lindselltrain.com [Fact sheets & insights]

https://www.fundsmith.co.uk [Annual reports and videos]

http://www.sanford-deland.com [Fund based upon Buffett's investment methods]

https://woodfordfunds.com [Diverse investment although not a value investment]

and US based websites:

http://www.berkshirehathaway.com [Annual reports and letters]

https://www.oaktreecapital.com [Memos from Howard Marks]

http://www.theinvestorspodcast.com [Books reviews, interviews & Podcasts]

I leave you with the below quote which caution a potential investor before buying shares in a 'turnaround' company:

"When a management with a reputation for brilliance tackles a business with a reputation for poor fundamental economics, it is the reputation of the business that remains intact."

- Warren Buffett

Important Information: I do not give investment advice so you need to decide if an investment is suitable for you. If you are unsure whether to invest, you should contact a financial adviser.