Renowned Value Investor Reveals His 4 Secrets for Investment Success

Investing Daily senior analyst Jim Fink publishes new investment report, Undervalued Stocks at Your Doorstep: The Four Secrets to Picking Great Stocks.

Value investing is the best way to build long-term wealth in the stock market. Those who understand the principals of this investment paradigm are most likely to beat the market on a consistent basis. While it’s possible to beat the market through luck in the short term, over the long term, investors need to arm themselves with the knowledge and tools that top investors like Warren Buffett and James O’Shaugnessy employ to generate alpha.

In Undervalued Stocks at Your Doorstep: The Four Secrets to Picking Great Stocks, Jim Finkoutlines his 4-part strategy that individual investors can use to generate investment returns on par with the world’s top investors.

“While I can’t say that the four secrets uncovered in this report contain all that there is to know about the market, understanding them will help you save a great deal of time and effort, not to mention financial management fees, in finding the best and most undervalued stocks that will generate the biggest returns for your portfolio,” says Fink.       

The report comprises four chapters:

·         Take Advantage of Other People’s Short-Term Behavioral Biases While Controlling Yours

·         A Company’s Earnings are Less Important Than You Think

·         You Can Make 50% Per Year in the Stock Market

·         The Greatest Anomaly in Finance

The report, which can be accessed for free by following the link below, introduces the controversial idea that individual investors can achieve higher rates of return without incurring higher risk. The idea is seen as controversial because traditional capital asset pricing models (CAPM) predict that the higher a stock’s beta (measure of volatility), the higher the expected return should be.    

The report cites a 2011 Harvard University study, which analyzed stock returns between 1968 and 2008 to conclude that low-volatility, low-beta portfolios offer an enviable combination of high average returns and small drawdowns.

“It’s an amazingly powerful concept. By taking advantage of the stock market’s inefficiency and buying low-beta stocks, individual investors can do better than mutual funds and Wall St. professionals,” concludes Fink.

The report can be accessed for free by visiting: http://www.investingdaily.com/glp/38311/most-undervalued-stocks.html