My Investing Framework as a Value Investor - Michael Jay

Описание: This is my investing framework as a value investor. I’ll also teach you how to develop your own framework so you can invest like a pro. From stock selection, to position sizing, to market timing, to risk management.

In this video, I share my investing framework as a value investor.

The reason for this is because of this graph.

This graph is from JP Morgan and shows the annual returns from different types of investments from 1998 to 2017. Over those 20 years, had you invested in almost any asset class you would have made money. Real estate, stocks, gold, even bonds you would have made 5% or more per year.

But then there is this one bar. This bar is lower than the returns of all the other assets, just barely above inflation. This bar is the annual return of the average investor.

2.6%

How? It’s because the average investor makes many mistakes due to a lack of an investment framework.

If that doesn’t convince you, here are some real numbers to give you a sense of how important this is.

A 30 year old saving 10K year at a rate of 5% will have about $1 million by age 65.
But let’s say, by implementing an investment framework to your own decision making and avoiding mistakes, you can increase your average rate of return by just 1% from 5% to 6%.
Then for a 30 year old saving 10K a year, you will have over a quarter million dollars more by retirement at age 65. Even more if you start earlier or save more.

I show you how to build a systematic investment framework so you can avoid money losing mistakes and start investing like a pro.

We will discuss four key components of a systematic investment framework:

Stock selection

Position sizing

Market timing (asset allocation)

Risk management

We will go over all four of these components in detail and how you can apply them to your own investment framework. I will also provide direct examples of how I apply them to my own concentrated value investment portfolio.


DISCLAIMER: This video is a resource for educational and general informational purposes and does not constitute actual financial advice. No one should make any investment decision without first consulting his or her own financial advisor and/or conducting his or her own research and due diligence. There is no guarantee or other promise as to any results that may be obtained from using this content. Investing of any kind involves risk and your investments may lose value.

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