The $20 million investor blueprint. Is there one anyway? If it was so simple, why aren’t others doing it? These are very valid questions. But more often than not, people and investors in general ask the wrong questions. The question that an investor should first ask is how not to lose money.
By answering that question itself in a completely honest way which pertains to one’s abilities and investing knowledge, not only is the downside risk reduced but eventually, the upside takes care of itself as well. The $20 million investor blueprint is an introspective guide to value investing. And within the spectrum of value investing strategies, the all too ignored segment of deep value investing never seem to get their voices heard. The deep value investors of our time include Benjamin Graham, Walter Schloss and many other individuals. They have used a quantitative approach to build their portfolios. A quantitative approach should be used especially when investors are starting out. This is to eliminate biases within one’s psyche. Within the repertoire of deep value investing strategies, a strategy stands out – The Net Current Asset Value Strategy.
Now, the strategy is simple. According to some backtests, it has been found that portfolios of such boring stocks can gain close to 30% per annum. What is this strategy about? If one is able to buy companies trading at deep discounts to the liquidation value, these companies will do very well over time.
And why a $20 million portfolio? Warren Buffett did mention that if he were managing stocks that have a portfolio value of close to $10 million, it would make sense to look at the deep value investing approach. In fact, he has publicly acknowledged that his best years were his earlier years as a deep value investor. Looking at it from that perspective, if an investor is focused on the net current asset value strategy wants to grow his portfolio, he can easily expand his portfolio to $20 million by looking at markets internationally.
The book will feature:
- Case studies of stocks that have done well
- Countless examples of stocks that should be avoided
- The author’s personal experiences in value investing
- How the net current asset value strategy forces an investor into a contrarian framework
- Why searching out for companies with little analyst coverage have proven to be a boon rather than a bane
- Why deep value investing works
- How to be a serial compounder in the stock market
- How to take care of the downside and let the upside take care of itself
- The author’s personal journey in value investing and how one can avoid the noise in the market
- What works in investing and what does not
if you are new to investing or value investing, this is perhaps the best place to start out. The aim of this book is to help investors look at investing in a different light instead of the earnings obsessed markets. By doing so, one can make considerable progress as an investor. This book has been written with best intentions for the amateur investor. We really hope that investors start off on the right track and avoid those costly mistakes in investing as beginners do. Again, our message is : stick to a quantitative approach and be disciplined to grow your wealth to unimaginable millions.