How To Value Invest Kindle Version Now Free For 5 Days

How to value invest cover for Amazon (2)

The Kindle version of How To Value Invest is now FREE through Amazon for the next 5 days.  If you have wanted a copy of the book to learn how to practically learn how to value and evaluate companies for potential investment but could not afford it or were not sure about paying for it you will now have 5 days to get the book completely for FREE through Amazon.  A description of some of what can be found in the book and testimonials/reviews can be viewed below.

Testimonials

I have separated the reviews/testimonials by bold and unbold fonts below.

“Mr. Rivera’s tome is a useful and honest reflection of his journey into value investing. As such, it would be of immense benefit to fellow travellers who are practicing the art and science of value investing. My sincerest thanks to Mr. Rivera for sharing his experiences with us. I have learnt much from him.”  This high school teacher wished to remain anonymous and sent me this testimonial through email

“Jason commented the book is geared towards beginner and intermediate level value investors, I don’t agree. I’ve read countless value investing books and if you take reading it seriously this book is for all investors even those with years of experience and a formal investment finance education.

I do agree with Jason’s comment you don’t need to an Ivy League school education to be a great investor. If only this kind of book was available when I majored in Investment Finance and Accounting from a “top ranked” NYC Business school. My investment skills would have been far better served reading, studying and understanding all the concepts presented in this book”  Portion of Shadowstock’s review from Amazon.

“Jason hit a home run with this book by filling a void in investing literature that needed to be filled. If this book was on the shelves when I first started learning investing it would have saved me hours of work. Not only does the book teach you everything you need to know to be a great investor, but Jason’s personal story and experience helps show you HOW to learn — even more it shows you how to learn without spending money or going to college. When it’s all said and done, the book keeps its promise: It will teach you to be a value investor while saving you both time and money. $40 beats the costs of a university any day.” Daniel Sparks (Valuefolios) Review From Amazon

“This book gives you a great perspective of how you should evaluate a company from a value investment side.” A portion of a Verified Amazon Purchaser review from Amazon

“Jason Rivera’s first book is a culmination of 5 years of work, and it shows. To the beginner investor: if you ever wanted to learn how to really value companies–not just grab P/E ratios from Morningstar or Yahoo! Finance–this book should be the foundation of how you begin your education.

Mr. Rivera has curated the web’s best investment resources into a streamlined, easy-to-read walkthrough. What sets this book apart is its ability to discuss higher level concepts in the language that introductory investors would understand.

This is a vast genre, but I implore you to invest in Mr. Rivera’s firsthand experience into the subject of financial enlightenment. It’s really that simple.”  Jake’s Review from Amazon

There is plenty to be inspired by in this book, The author is a private investor who has taught himself how to be a value investor through perseverance, focus and many, many hours of reading, either books, articles or just surfing the internet. The message is clear, if you want to be a good value investor you don’t need an MBA but do need to put in the time and practice; this book though can help you on your journey.

What I liked most are the 11 chapters each dedicated to a case study where a companies stock is valued using different mixes of valuation techniques. These range, for example, from ‘asset reproduction value’, ‘sum of the parts’ and ‘relative valuations’. There is plenty to learn in how to value a company and what metrics/ratios can be used. The author looks for value but also the Buffett styled ‘moat’ to ensure competitive advantage of the company.

What I also enjoyed very much is the authors analysis of his original case studies and how the investment played put. This was done with great honesty even when it didn’t go exactly to plan and mistakes were made in hindsight. This is not only refreshing for the reader but also critical for investors to improve their skills. In addition there are plenty of suggestions of books to read and websites to visit to help you further expand your knowledge.  A portion of Valuefactors review on Amazon UK.

The premise of this book is very simple: You no longer need to go to an expensive Ivy League level school to learn how to become an excellent value investor, and I am going to show you the steps I took to teach myself about investing and how you too can become an excellent value investor without going to college.

If you want to become an excellent value investor faster, while also saving yourself a lot of money in the process, then continue on and learn from my value investing journey.  The book is geared towards beginner and intermediate level value investors to help reduce the main problem and frustration I had when I started to teach myself; wasted time.   A small portion of what will be taught in the book is below:

  1. How to use the valuation techniques that I use, how to adjust them, and what they mean for the overall investment thesis.
  2. How to properly evaluate a company’s financial reports, profitability ratios, and debt ratios to help decide if the company is a potentially good investment.
  3. I will tell you how I make sell decisions now and how I used to make them.  This includes me sharing how I missed out on a nearly 70% gain because I didn’t have the proper sell decision processes in place when fully invested and how you can avoid the same mistakes.
  4. I will share with you how I do research now and how I used to do research by showing you how to discard bad companies a lot faster which will save you a lot of time and leads to finding better companies quicker.

If you learn and put into practice what is shown in the book, work hard, continue to learn, and develop your own proper thought, investment processes, and mind-set than I guarantee that you will be a better at evaluating companies for investment than most MBA’s and professional level investors all for less than 1/3 of the price of ONE college textbook, for a fraction of the cost of going to a university, and you will also be saving yourself YEARS of time from having to find all of this information by yourself like I had to.

The links for foreign Amazon sites can be found on this page.

Also, if you could please take 30 seconds of your time to review the book on Amazon and send me testimonials of the book that I could post on the blog I would greatly appreciate it. Please pass this along to your colleagues and friends who are interested in investing as well.

 

FREE Kindle Version of How To Value Invest and New Paperback Price

As I mentioned in yesterdays video here, I am putting How To Value Invest the Kindle version, on sale for 5 days starting tomorrow morning 6 AM PST, completely for FREE.  I want to get the book into as many hands as possible and have received some emails from people in various countries that they would like to read but could not afford the book.  If you have ever wanted to buy the book but were worried about the price, you now have no excuses to pick it up because for 5 days starting tomorrow at 6 am PST you can get it for FREE through Amazon.

Starting NOW I have also PERMANENTLY dropped the price of the paperback version of How To Value Invest to $12.99 to bring it into line with the pricing of most paperback versions of other investing books, again to get the book into as many hands as possible.

Starting tomorrow you can get the Kindle version either directly from Amazon or linked through my site on this page, where you can also view reader testimonials, reviews, and download some excerpts from the book and preview the first several chapters of it as well.  As of the time of this writing the paperback version of How To Value Invest is supposed to be selling for $12.99 if you want to pick it up at its new price, but is still showing the old price so please make sure that if you are buying the paperback version of the book that you are paying $12.99 through Amazon BEFORE BUYING it as it takes some time for Amazon to update prices.

Weekend Reading Links: Psychology, Competitive Advantages, Niches, Curiosity, Breaching Moats, Studying Complexity, and More.

IO9.com – The Most Important Moment In The Evolution of Life.

Destructoid – How Paradox Interactive Found Success In A Niche Market.

Big Questions Online – How Can The Study Of Complexity Transform Our Understanding of the World?

New York Times – How Inactivity Changes the Brain.

New York Times – A Start-Up Run By Friends Takes On Shaving Giants.

Four Hour Work Week – Preventing Burn Out: A Cautionary Tale.

Pick The Brain – Boring is a State of Mind: How Curiosity Diminishes Monotony.

Farnam Street – The Man That Never Quit.

Cosmos Magazine – Psychology of How We Perceive Fear.

NY Mag – Why Abercrombie Is Losing Its Shirt.

Value Investing Case Study #1 Video Answer 4:03 Long

This is the video answer and valuation for last weeks video valuation case study.  Please let me know what I could do better in the comments below and please send me any suggestions for future content and/or case studies.  Have a great World Cup and Father’s Day weekend everyone.

Portfolio Update and Weekend Reading Links

Portfolio Update – Portfolios Now In 69% Cash.

I made a transaction for the first time in more than a year in the portfolios that I manage and wanted to update where those stand as of today.  I sold out of Vivendi today up 50% in the nearly 2 years that I held the company.  My reasons for selling were simple: 1) Vivendi was one of the first companies I bought into after I started doing actual company analysis and the thesis played out exactly as I had hoped it would.  They sold assets, paid down debt, and are in a much healthier position now going forward.  2) Going forward there is now too much uncertainty for me on what their plans are with their massive amount of cash they will soon be getting and I do not want to see a repeat of the early 2000′s acquisition spree that went horribly wrong.  3)  MOST IMPORTANT POINT.  I am now much more confident in my abilities to analyze companies for potential investment then I was two plus years ago when I bought Vivendi and think that I can do much better buying microcaps and/or special situations companies and want to be ready for any kind of market crash with a lot of cash in the portfolios.

The percentages below are the percentages (rounded) that make up the current portfolios.  Also, until the market drops significantly the make up of the portfolio below will likely remain intact until more companies become undervalued again and I can start buying again.

Cash – 69%

BOBS - 13%

PARF – 12%

CMT – 6%

Weekend Reading Links

The New York Times – Cocaine Incorporated.

A Wealth of Common Sense – Buffett’s Fourth Law of Motion; Your Behavior.

The Daily Galaxy - An absolutely amazing site if you love science, astronomy, exoplanets, and anything else having to do with space.

Financial Times – Rafael Nadal’s Key To Winning.

The Sova Group – Xoom Company Analysis.

East Asia Student - 10 Best Mandarin Learning Resources.

Walrus Value – Investment Booklist and Borrowing Hard To Find Books for Free.

Valuewalk – The Classic Shelby Davis Double Play.

JLCollinsnh – The Worst Possible Investment you Can Construct (Practicing Inversion).

MIT Technology Review – Scientific Thinking In Business.

 

Blind Value Investment Case Study Video 1:43 Long

Hey everybody I have wanted to make some video content for the blog for a while now but have not had anything interesting to do a video about until I found this company I came across recently.  The video is below, is only 1 minute and 43 seconds long, and contains all the major information needed to value the business so please leave your comments below on how you would value the business, if you would buy the business, what other topics you would like me to talk about in the future, and what I could do better with future videos since this is the first time I have done a video.

PS – I forgot to talk about a couple of pieces of information in the video that may help you value the business.  Sorry about this and please bear with me as this is the first time I have done a video.  I plan to make the future videos better.

1) This company has an inventory sell through rate of approximately 15-20% per month.

2) This company does ALL of its business online at this point and DOES NOT have a retail space so overhead is minimal.

3) For every $1 this company spends to buy inventory for resale, it has gained about $5 of EBIT, because of the higher price upon selling the items, after the original costs of buying the items, fees, shipping, etc, but before taxes.

4) It has had sales of just over $4 million in 3.5 years.

5) It has an approximate 50% EBIT margin.

I will post my video reply and tell you what the company is next week and I hope you enjoy!

Value Investment Case Study #1

Below are the links to download the most recent quarterly and annual reports for the first blind value investment case study on this blog.  As I stated in one of my previous posts about this I redacted all identifying information about this company so all you will have to rely on is what is found in the financials.

The only information I am going to give you that is not in the financials is that as of this past Friday the company has a current market cap of $4.7 million.

I will not post my analysis until at least a few of your analysis write ups posted in the comments section of this post and I am not looking for a full 7-20 page write-up.  The main things I am going to post about when I write my analysis is valuations, pros and cons, and if I would invest in the company.  If I would at what price do I estimate its intrinsic value to be and at what price would I buy into them.  If I wouldn’t buy into them why not.

I hope that we will all learn a lot from this by seeing each others analysis and helping each other out to see where we could improve.  I also hope that these kinds of exercises will help keep all of our skills fresh while we wait for a market drop.

I hope to see a lot of write ups and hope this is a good exercise for us all.  If you are able to figure out which company this report is (or in case I missed some kind of identifying information to redact) please do not post about it until after the company is revealed.  Also, if you have any suggestions for the next case study please let me know what you think could improve this process for us all.  The financials are directly below.

Case Study #1 3Q 2013 10Q

Case Study #1 2013 10K

Weekend Reading Links And First Case Study Incoming

The first value investment case study will be released this coming Monday and I hope that we can all learn something from it.  Until then on to the links.

Janav.Wordress.com – Be A Learning Machine.

The XX Committee – Is East Asia About To Experience Its “July Crisis?

National Geographic – Mice Inherit Specific Memories, Because Epigenitics?

Remembering The Obvious – Charlie Munger’s Wesco Letters.

Fundoo Professor – The Ashiana Housing Lecture.

Santa Fe Institute – How Complex Systems Science Helps Reveal Market Behavior.

Wiley Online Library – 17 Free Issues About Psychology Topics.

Long Reads – There is Nothing New In Wall St: A Stock Traders Life In The 1920′s.

Value Walk – Understanding And Valuing Financial Companies.

Nathan Barry – Two Years After Quitting My Job 2013 Review.  Amazing story for any entrepreneurs out there like me.

Direction of This Blog For The Time Being

Over the last two weeks I have asked for some input on the kind of educational value investing content you would like to see on this blog until the market drops significantly.  The two-week poll results are in and it appears the majority of you want to see value investment case studies first.  I will begin work immediately on some of those but honestly do not have a time frame for when I will start to post them.

To make it fair for new and advanced analysts alike I am going make it a blind valuation case study where all I am going to give you is the companies financials, footnotes, and other key points from their proxies, annuals, and quarterlies.  I am going to redact the company name and any other potential identifying information so that we can all hopefully learn as much as possible by not knowing which company it is or how much its shares are selling for.  The exercise will be to determine: A) Would you buy this company? B) What would you estimate the companies intrinsic value to be? And C) If you would buy this company at what price would you buy them at?

When I am ready to release some of these I will release the above information one week, wait for some of your reader valuation and analysis write ups to be posted, and then release my valuation and analysis of them a week or two after I release the company financials and other information.

I will only post information on companies that I have not done research into so that we can all do this exercise together and learn from each other.  My hope is that this will be a great help to all of us, that we will all learn a lot, that we will help each other learn, (especially newer investors) and help to keep our skills fresh while we wait for the market to drop.

I plan to get some of these up as soon as possible but I honestly have no idea when I will start posting them because I have never done anything like this before so please be patient with me.

I also will start working on some video content for the blog as well so if you have anything you have ever wanted to know or wanted help with that you think would be good to talk about in a video format please leave a comment below so I can get some ideas for videos.

One last note for today.  In the poll someone voted for the “Other” option but did not comment about what they would like to see.  I would love to hear from you and your idea so if you see this please comment below or email me your idea.