33% Off Everything In the Value Investing Journey Shop Until Tuesday

33% Off Everything In the Value Investing Journey Shop

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Value Investing Journey

While I announced the opening of the Value Investing Journey Shop last month, because I’ve been so busy I didn’t announce it to many people.

To make up for that oversight, I’m offering 33% off everything in the Value Investing Journey Shop for the next three days only.

This includes all issues and the All Past Press On Research issues package where you get all past issues for one set price.

This means for the next three days you can pick the individual issues you want most for $65 instead of the regular $97.

And that you can get All the Past Press On Research issues in one package for $628 versus a normal price of $997.

33% off all items in the Value Investing Journey Shop until Tuesday

But only until Tuesday…

I won’t do discounts often – if at all in the future – so if you’ve wanted to see my latest stock recommendation issues at a discount you better buy them now.

As of this writing, each pick is up a combined average of 50.3%.  And these picks are crushing the market.

Below are some of the highlights from all the issues…

  • The average gain for all 12 recommendations is 50.3% as of this writing…  These picks are crushing the stock market since April 2015.
  • As of this writing, the stock market has only produced a 15.8% return.
  • Meaning, my picks since April 2015 have outperformed the stock market by 34.5 percentage points.
  • Two companies I recommended grew from sub $500 million market caps to $1 billion plus market caps as of this writing.
  • One company as of this writing has now surpassed a $2 billion market cap since I recommended them.

So you’re probably wondering what you have to do to get the coupon code.  And the answer to that is nothing…

The coupon code is – 33%OffGrandOpening

The discount won’t show up until you input the code when the item is in your cart as you’re getting ready to check out.  So make sure to put the coupon code in before you hit the payment button or you’ll have to pay full price.

You can go to the Shop here and begin getting your deals now.

And this is the only place to see my most recent stock recommendation issues.

If you have any questions contact me using the Drift App – the blue icon in the bottom right third of the page – to message me through this site and I’ll get back to you right away.

Happy shopping smart value investors.

Announcing The Complete Business Analysis Service

Three Day Complete Business Analysis Of Your Entire Business… Anywhere In The World

Running a business is hard enough.  But if you don’t know your numbers, know what’s happening in your industry, and what’s coming in the future, then it’s almost impossible to run a successful business.

According to the United States Small Business Administration 1/3rd of small businesses close within their first two years of operations.  And only half of new small businesses last beyond five years.

According to a U.S. Bank study, “a whopping 82% of businesses fail because of cash flow problems. ”

Just because you’re starting a business doesn’t mean you understand what goes into making that business profitable.  Or the metrics that show if your business is doing well or not.

I can help…

I’ve got 10 years of experience valuing and evaluating businesses.  Finding their competitive advantages and strengths while also figuring out what their weaknesses are so they can be improved on.

If you’re looking to increase profitability, improve efficiency, turn your inventory over faster, improve cash flow, clean up your balance sheet to improve cash and lower debt, I can help with all these.

I can also help with the following problems as well…

  • Do you run or own a business and have tried to improve it without luck?
  • Maybe you’ve run your business for years but now want to sell and don’t know how to value your business?
  • Is your competition outpacing you and you don’t know why?
  • Or maybe you’ve inherited a business and just want to sell but don’t know how to value the business.

To find our more go to the following page Complete Business Analysis which has the full information on this service.  And more importantly, how I can help you grow revenue, find your competitive advantages, value your business, improve profitability, sell your business, and achieve your business dreams.

Preliminary Analysis Training Video for Client

Preliminary Analysis Training Video for Client

In this video, I made a preliminary analysis training video for a Value Investing Coaching Program client.

In the video, I take the client through everything I do on a preliminary basis.  Explain why I look at everything I do.  Explain what everything means.  And most importantly, why everything I look at is important in the context of evaluating an investment.

Below is an edited transcript of the first part of the video… You can watch the full video further below.

And one last note before getting to the transcript of the video…

The client picked this company for us to do a real-time and real-world analysis on because he was interested in this company as a potential investment.

I’d never seen or evaluated this company before meeting and talking with this client.

***

Since we’ve already talked about this company a bit on a preliminary basis, I’m doing things differently than I normally would on a preliminary analysis.

I’m also going through this slower than usual so I can explain what everything means.

The first thing I do is go to Morningstar, open up the key ratios tab and the financials tab in another page so I have those handy and ready.

The first thing I want to mention here is that I was able to find its ticker on Morningstar unlike the other day when we were talking.

It’s listed on the Frankfurt exchange on Morningstar under the ticker SGQ.

You’ll notice SGQ lists in Euros on Morningstar as well.  Make sure to always notice which currency the company lists on financial sites.

Go to Google Finance, same company but this time the company lists on the Singapore Exchange under the ticker B7K.

I’m going to reference the Google finance listing throughout but I’m going to be using the company’s financials listed on Morningstar because that’s where I do all my preliminary analysis as they have more information.

But because of this difference please keep in mind some of the numbers may be different from the ones you’re seeing.

This is because the Google finance numbers are i n Singaporean Dollars (SGD) and as mentioned above Morningstar lists its numbers in Euros.

The first difference you’ll notice is the difference in market cap of 28.9 million Euros on Morningstar and 44.4 million SGD on Google.

This is likely due to a conversion rate exchange difference and I’ll look at that later.

The next thing I do is get right into the preliminary analysis.  The same one I use for every company I evaluate…

***

To see the full real-time and real world training watch the video below.

And if you’re interested in getting your own one on one Value Investment Coaching please go to the link below.

Value Investing JourneyValue Investment Coaching Program.

Interview For How I Grow My Wealth

Interview For How I Grow My Wealth

Earlier this year John from How I Grow My Wealth asked me a question about P/E and EPS on my post: Why The P/E Ratio is Useless And How To Calculate EV.  And then we talked further about this and other value investing and business topics on Twitter and through a couple of phone calls.

Shortly after this, John asked me if I’d like to do an interview for his site and of course I said yes after our fantastic chats.

Below is a brief excerpt of the in-depth interview I did with him for his site

To view the entire interview please go to this link which will take you to it.

The interview includes talk about value investing, self-improvement, the $8 million acquisition I attempted last year, inspiration from Bruce Lee and Grant Cardone, and more.

I hope you enjoy it.

***

I’m very excited to be sharing this interview with Jason Rivera, a man who in his first five years achieved better returns than Warren Buffet did in his first five years. Who is Jason Rivera? Let’s get into the interview and you’ll find out!

John: Can you provide some background on yourself and Rivera Holdings for those who aren’t familiar with you or your company?

Jason: Yes. I’m a self taught value investor who focuses on small and obscure public companies to buy for my investors. And I’m now also looking for private businesses and cash flow producing real estate to buy as well.

I’m the author of the acclaimed value investing education book How To Value Invest. Have run the blog Value Investing Journey for more than five years now. Wrote a 60-page booklet detailing the immense power of investment float that I released for free to readers of my blog and followers – on Twitter and Facebook – titled All About Float. Have written for several publications and investment newsletters including: Seeking Alpha, Guru Focus, Insider Monkey, and Palm Beach Research Group among others.

I mentor others on how to become great value investors, consult on projects requiring business analysis and valuation skills, and run my investment holding company Rivera Holdings LLC. out of the Tampa Florida area.

John: When you were a kid did you know you wanted to grow up to be a value investor?

Jason: Ha ? no. I don’t have any stories like Warren Buffett where he was buying things at wholesale prices – gum if I remember right – and then selling them at a higher price to his classmates as a kid.

Unfortunately, I was far more interested in playing sports, chasing girls, and playing video games than investing when I was a kid.

I always knew I wanted to make money, start businesses, and help people but the value investing part and putting effort into making those things happen only began happening in my late teens and early twenties…

Thanks a lot John for asking me to do the interview.  I hope our readers gain something from this.

2016 Performance Review – Five Full Years Beating Buffett and Crushing The Market

2016 Performance Review – Five Full Years Beating Buffett and Crushing The Market

The above quote from Benjamin Graham is one of my favorites.

It means in the short-term emotion and psychology drive the market.  But in the long-term the market – and individual stocks – get judged on how well they’ve operated and grown over time.

This is great news for us as long-term oriented value investors.

If we can find a few great companies at cheap to fair prices and hold them for the long-term, we’ll have great returns over time.  Why?  Because…

“Time is the friend of the wonderful company, the enemy of the mediocre.”  Warren Buffett

With this as a backdrop, below is the 2016 performance review.

For links to 20122013, 2013 updated numbers, and 2014 and 2015 performance reviews go to the previous links…

Also, as noted above I made multiple mistakes in 2013 when calculating my returns.  The numbers below – which show the five full years between 2012 and 2016 – are correct.

2016 Performance Review

The hard work, extreme patience, discipline, and low returns from 2014 and 2015 paid off in 2016.

I only bought and recommended three new companies all year for the portfolios I manage and for Press On Research subscribers.

But the companies I still own from 2014 and 2015, combined with the three new recommendations in 2016, produced a fantastic 32.8% return on average in 2016.

Here are the highlights…

  • One of the companies I recommended while working at the investment newsletter got bought in 2016.
  • Another company I recommended to Press On Research subscribers merged with its parent in 2016.
  • Another two Press On Research picks from 2015 more than doubled in 2016.
  • None of the 12 total picks I’ve made for Press On Research were down in 2016.
  • At the time of their recommendations, all companies were well below $1 billion in market cap.
  • I now own two companies – the two that more than doubled – that are worth more than $1 billion in terms of market cap.
  • The average market cap at the time of my 12 recommendations was $246.4 million.
  • The average market cap of the 11 companies I still own – not including company that got bought – is now $413.3 million.

Below is the full spreadsheet…

2016 VIJ and POR Performance Review

If you’d like to know what the companies are you need to subscribe to Press On Research.  And remember Value Investing Journey free subscribers get a 50% discount on a Press On Research subscription.  If you’re a Press On Research subscriber I’m sending an unedited version of the spreadsheet your way.

What does this mean for cumulative full five-year returns now?

Five Full Years Beating Buffett…

I don’t compare myself to Buffett because I want to be the next Buffett.  But because everyone knows who he is as he’s regarded by most at the best investor ever.

I want to be known as the first Jason Rivera when my career is over.  At the end I want to be known as a better investor and capital allocator than Buffett and to produce better returns over time than he has.

At least for now – five full years into my career – I am achieving this lofty goal by beating Buffett when compared to the first five years of his career.

In the first five years of my career I’ve now produced average – non-compounded – returns of 29.7% each year.  Or a total cumulative return of 148.3% over that period.

In the first five years of his career Buffett produced average – non-compounded – returns of 25.4% each year.  Or a total cumulative return of 126.9% over that period.

This means in the first five years of our careers I’ve produced returns 4.3 percentage points better each year than Buffett did in the first five years of his career.

But what does this 4.3 percentage point excess return per year mean in dollar terms over this period?

Assuming we both started with an asset base of $10 million at the beginning of the five-year period I would have grown that $10 million into $36.7 million after five years.  Buffett would have turned his investors $10 million into $31 million in that time.

This is why every point of excess returns is so important.  And why you need to be aware of any fees charged to your account by your money managers.

Over a long period – or in this case five years – “only” an excess 4.3 percentage points each year would have made investors $5.7 million extra.

Not only am I achieving my lofty goal of beating Buffett through this time, but I’m also crushing the market as well.

And Crushing The Market

From 2012 through 2016 the Dow Jones Index produced a total cumulative return of 37.4% for the five years or 7.5% per year on average.

The S&P 500 produced a 43.2% total return for the five years or 8.6% per year on average.

And the Russell 3000 index – closest thing to a small cap index – produced a 43.5% total return or 8.7% per year on average.

I’ve produced returns in excess of these indexes by 21%, 21.1%, and 22.2% points each year over these five years.

Assuming a $10 million asset base I would have produced $21.5 million more for investors over this five-year period than the Russell 3000 index would have.

  • $36.7 million minus $15.2 million the Russell 3000 would have produced.

I started posting my results publicly in 2012 because this is when I began doing “real”, in-depth, investment research and analysis instead of speculating.

Results have been great thus far…  Better than I expected… But there’s still a lot of work and improvement necessary to continue this.

Other Highlights From 2016

Thanks to sales of How To Value Invest and Press On Research subscribers we continued helping Mhicaella and her family in the Philippines.

The last letter we received from her mother told us that Mhicaella is now in kindergarten.  She loves P.E., singing, and drawing, and is learning to read and write so she can begin writing letters to us soon.

Here is a recent picture of Mhicaella…

Mhicaella Picture

With your help, some of the things we’ve been able to help provide for her and her family over the last year are school supplies, medical and dental care, and Christmas gifts for her entire family.

A percentage of all sales of my books, services, and products sold will continue going towards charities like these well into the future.  And I plan to expand and sponsor more kids and families in 2017 now that Rivera Holdings is up and running.

Thank you so much for helping with this.

***

Other highlights from 2016 are:

  • Started Rivera Holdings LLC.
  • Began raising capital.
  • Grew personal connections by an exponential amount due to capital raising efforts.
  • Grew from 320 subscribers between Value Investing Journey and Press On Research to now 455 total subscribers between those two services and now also the Rivera Holdings Mailing List.
  • Read between 50 and 75 books this year.
  • Grew from 720 followers on Twitter as of the beginning of 2016 to 1,008 now.
  • Grew from 790 connections on LinkedIn as of the beginning of 2016 to 896 now.
  • As mentioned above we continued helping Mhicaella and her family in the Philippines survive and thrive.
  • For the first time in three years expanded my circle of competence in terms of industries.  I now understand and feel comfortable evaluating three new industries – marinas, hotels, and multifamily real estate.
  • Also expanded knowledge and experience into the private equity/investment arena as well.

Conclusion Thoughts

As mentioned above the patience of the last two years paid off this year in a big way.  Going forward I wouldn’t expect results to continue this trend.

Due to the still ever rising market and valuations it’s become harder to find great cheap companies to buy.  I only recommended three companies in 2016 and all those were in the beginning of the year before the market took off again.

Barring a major sell off I expect to add few to no companies again in 2017.

As I’ve mentioned already mentioned to Press On Research subscribers I will only buy something that meets my ultra-strict criteria.  Under no circumstances will I buy something because I haven’t bought in a while.

This helps keep us only in great companies and should help us continue producing exceptional returns over time.

No matter what the market continues to do though over time I’m confident we’ll continue to beat the market by a wide margin.  And continue to compound our wealth over time.

I’m still raising capital for my new investment holding company so if you’d like more information about how you can invest with me and the market-crushing returns I’ve produced thus far email me at JasonRivera@valueinvestingjourney.com, call me at 605-390-3157, or sign up for the Rivera Holdings mailing list.

As always 2016 wasn’t all great news…

Up next will be a post detailing my major failures in 2016.

***

Here’s looking forward to an even bigger and better 2017.

Thanks so much for everyone who’s been a part of this journey so far.  And please let me know how I can continue to improve things going forward in the comments below.

Jason Rivera

Chairman, CEO, and Founder of Rivera Holdings LLC