Thursday, May 24, 2012

A business of true value

Today I start something new. 

I've always wanted to show how much I like investing, learn the most I can about it and eventually tell and teach people what I learned. I started by gambling, sort of say, in the stock markets rather than investing, but I'm sure that today I have a very different approach and can call myself an investor after 2 years of tryouts in different asset classes and different strategies. Value investing is my area of interest and I want to make a career out of it.

I believe Value Investing is all about discovering a company that does what a company is supposed to do: Sell products that people buy (preferably that they need) and continue buying, and they make an increasing level of cash-flow that enables the company to grow, continue to grow and grow some more until they become a large sucessful enterprises. Enterprises that can survive extended recessions and create value for the market place. I do believe that creating revolutionary products is great and certainly signals that the creators are truly bright entrepreneurs, but if there isn't an interconnection of business factors, the product is not going to sell and there won't be an attractive cash flow coming in...What are these business factors? They're marketing the product, creating a credible trust for customers, believing in the product, creating a long lasting brand (i.e. Coca-Cola), having a great management team, minimizing costs and optimizing prices, using the least resources possible to create the end-product...

I could go on and on about what I believe makes a successful company, but the point is, we as investors need to know what we are buying, especially nowadays, we need to optimize our 'personal' cash flow. We don't want to lose money, we want to MAKE MONEY. There are not many ways of NOT losing money in the stock market, but there sure are plenty of ways to LOSE money in the stock market. The catch is sticking to the ways that work.

The purpose of this blog is to broaden my network, show the industry and the world what I love the most and to receive and learn from commentaries of other bloggers/investors.

Keep Investing.

Take care.
J.P

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