Why NexPoint Diversified REIT (NXDT) Is My Favorite Stock Right Now
The market may finally be getting healthy. And NexPoint Diversified REIT (NXDT) is the perfect stock for the next big upswing.
Read More
Finding value is all about buying something at a discount to what it’s actually worth. The same is true of value investing.
Sometimes factors can cause a stock to get beaten down to the point of being undervalued. Value investing is about finding stocks that are worth more than their current share price.
Investment legends like Sir John Templeton, Benjamin Graham and Warren Buffett realized decades before behavioral finance became a respected academic discipline that systematic psychological errors tend to create market inefficiencies. Templeton, Graham and Buffett reasoned that herding behavior (including momentum traders and short-term speculators that chase price trends) and overreaction bias (the tendency of people to overreact to bad news) are strong forces in the market that can push stocks far below their fair value.
Based on these observations, many of the world’s greatest investors look for stocks that are beaten down by the market due to bad news or negative rumors. Benjamin Graham, the father of value investing, constantly searched for companies that once fetched sky-high valuations but that crashed when the companies were unable to deliver on investors’ expectations.
Warren Buffett famously said, “We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
Value investing is about recognizing opportunities, spotting deep discounts and finding the next big turnaround stock. One way some investors measure a company’s value is its price-to-earnings ratio, or P/E. But P/E is a very simplistic measure of a stock’s value. Experts dig deeper, examining a company’s sales, cash flow, dividend, book value, debt levels, historical valuation patterns and more to determine if a stock is undervalued.
To help you find the next turnaround story, chief analyst Bruce Kaser writes the Cabot Undervalued Stocks Advisor and Cabot Turnaround Letter. Both advisories have a proven track record of handily beating the market with some of the most unloved, left-for-dead stocks on the market … right before their comeback stories begin.
To subscribe to either of Bruce’s value investing advisories, click here.
The market may finally be getting healthy. And NexPoint Diversified REIT (NXDT) is the perfect stock for the next big upswing.
Read More
Growth stocks have easily outpaced value stocks over the last decade. But these things are cyclical - and the value investing approach should soon win out.
Read More
There's not much to like about stocks right now. But rising earnings estimates is a rare trait that can identify the next turnaround story.
Read More
Contrary to what Warren Buffett says, it's always a good idea to diversify your portfolio. Here are three reasons every value investor should do it.
Read More
This is the secret Warren Buffett stock picking formula that has helped investors build long-term wealth and beat the market over and over again.
Read More
Warren Buffett became the world's greatest investor by finding undervalued stocks. Right now, these three big oil stocks look right up his alley.
Read More
Not all beaten down large caps are bargains, especially in the tech realm. But these two mega-cap value stocks have a key stamp of approval.
Read More
Benjamin Graham was the father of value investing, and these were his seven primary criteria for selecting winning value stocks.
Read More
Negative enterprise value stocks are hard to find. But having outperformed the market by more than 5-to-1, they're worth hunting for.
Read More
Benjamin Graham is considered the godfather of value investing. Understanding his system and his thinking can help you find the right value stocks.
Read More
A growing number of undervalued stocks are available for the conservative, steady investor to snap up and hold for long-term gain. It’s an exciting time to be a long-term, value investor! And we have a FREE Special Report, How to Find Undervalued Stocks, to help you get started.
Get My Free Report!