What To Do When The Market – Or Your Stock – Crashes?

What To Do When The Market – Or Your Stock – Crashes?

Sooooo…

Not sure if you noticed but the stock market dropped by more than 1,000 points twice last week – two of the market’s single day point drops ever – and a lot of people are freaking out.

Should you be?

No.

If you have disciplined investment processes you stick to, If you know what you’re doing, and if you own mostly good to great businesses, no you shouldn’t panic.

Or in many cases even do anything.

I answer the original question above in multiple different ways in the 13-minute video below. And I elaborate on these thoughts below the video.

In the video above, you learned why you should almost never panic in these kinds of situations.

Markets rise, markets fall, and in general, the market will continue to rise over time, barring a worldwide economic collapse. And if this happens, we will all have a lot more to worry about than our portfolios.

If you can ignore the market and continue doing disciplined research and you follow your processes for what worked for you in the past, you’ll do fine no matter what the market is doing.

That is, if you can keep your emotions in check.

This is the major potential problem every investor faces when a crash of any kind happens.

Why?

Because if you can’t keep your emotions in check, it doesn’t matter how much knowledge or skill you have as a value investor… If you can’t keep your emotions in check you will fail.

So what can you do about this?

Ignore the news, ignore the panic, stick to your processes, and learn how to control your emotions.

And keep in mind…

Even though most of the headlines said something like “Biggest One Day Crash In The Market’s History”, on a percentage basis these falls aren’t even in the top 20 biggest daily percentage losses. But the media doesn’t say that because it’s not as juicy of a headline.

Largest Percentage Daily Declines In US Stock Market History – The two ~4% Drops From Last Week Aren’t Even In The Top 20 Above

Am I saying you don’t need to be careful and reassess your portfolio to see if you should sell something or possibly to get more into cash? No.

I’ve said the market is overvalued for the last 5 years and it’s continued to go straight up. And it could continue to go straight up.

Or it could continue to crash…

No one knows when the next crash is going to happen.

If someone tries to tell you they know when the market or stock is going to crash, they’re full of shit and you need to run from them.

All I can tell you is the above…

If you continue to follow your disciplined processes and keep your emotions in check, long-term you’ll be fine.

In the short-term, your portfolio may get hammered in a crash, but if you’re concentrated on the long-term and are in mostly good to great businesses or cash you’ll be fine.

Get ready, learn as much as possible, continue to improve every day, and go with the flow like I talk about in the video above.

These are the best things you can do in these kinds of situations.

The WORST thing you can do is panic like the media, make emotional decisions, and watch the news on a minute by minute basis which will make your emotions go even crazier.

In the video above I mentioned many things I’ve done to get my mind out of the market. Things like learning and improving myself, my businesses, and my team.

What are some things you do to get rid of your emotions when the stock market or a stock you own crashes?

I’d love to hear some of them in the comments below.

P.S. If you’d like all future posts like this, make sure to sign up to our mailing list for FREE here. You’ll also gain access to free gifts that will help you become a better value investor as well just for signing up.

P.P.S. If you want to learn more info like this to become a great value investor fast and at a fraction of the cost of a normal university, check out our new Value Investing 6 Week MasterclassThe entire first week of the course is all about developing the proper value investing mindset.

Value Investing In Your Car Episode 6 – The Power Of Anchoring Bias

Value Investing In Your Car Episode 6 – The Power Of Anchoring Bias

In Episode 1 of Value Investing In Your Car, I answered the question Does Value Investing Work Anywhere In The World?

In Episode 2I answered the question When Does Value Investing Work Best?

In Episode 3, I told you about the best book I read in 2017, and recommended some other great books that I read in 2017.

And in Episode 4, I talked about how my family inspires me to become great and how having someone or something inspire you can change your entire life.

In Episode 5, I talked about how I may have found a new investment for the first time in almost 3 years.

And today in Episode 6, we’re talking about Anchoring Bias, its immense power, and how this relates to value investing.

So what is anchoring bias?

Anchoring Bias – A Major Cognitive Bias And Mental Model

Anchoring bias is an incredibly powerful cognitive bias.

Above is the generally known definition for anchoring bias… I would change one minor thing about the above – this change is in bold.

I would change it to this – “Anchoring or focalism is a cognitive bias that describes the common human tendency to rely too heavily on the first piece of information offered or the piece of information that best fits what they want.  Even if it’s not reality.

Why?

In the 10 minute video below, I describe a real-world example about how I struggle with anchoring bias and gas. What I do about this bias, and how understanding the mental model of anchoring bias and what to do about it can help you become a better value investor.

I talk about a real – world example in the video above but a value investment example would be…

Let’s say you found a small cap investment that is undervalued and that it’s worth $25 per share, so you decide to buy its shares at $20 while you can.

Instead of going up though, the stock price drops to $10 a share – or a 50% drop – 6 months later based on some very short – term problems for the company.

After reanalyzing the company to see if you made a mistake, you find out that these problems haven’t changed the economics or profitability of the company at all. And have done nothing to harm the long – term health of the company’s operations or balance sheet.

Should you buy more, do nothing, or sell your stock?

If you let anchoring bias get in the way – and your emotions take over – you may make the decision to sell because of these short – term problems.

Even if you should hold on – or even maybe buy more shares – since the company is the same or better off now, than it was when you first bought.

Knowing what anchoring bias is and how to potentially deal with these emotions and cognitive biases are part of the battle when you come across this example yourself after you buy an investment.

Some of the other stuff talked about in this video…

  • Why understanding Anchoring Bias is so important for value investing
  • Why understanding other cognitive biases and mental models are important to become a great value investor as well
  • How I still struggle with anchoring bias every time I gas up my truck
  • What I do about this
  • How I fight against this and other biases
  • And more

I’d love to hear your thoughts on anchoring bias in the comments below.

Here’s another post on Medium about anchoring bias if you want to learn more.

P.S. If you’d like all future posts like this, make sure to sign up to our mailing list for FREE here. You’ll also gain access to free gifts that will help you become a better value investor as well just for signing up.

P.P.S. If you want to become a great value investor fast and at a fraction of the cost of a normal university check out our new Value Investing 6 Week Masterclass.

You Can Do Anything You Put Your Mind To Part 2

You Can Do Anything You Put Your Mind To Part 2

I wrote the original You Can Do Anything You Put Your Mind To post in 2015, with the hopes to inspire you.

To help you see that if you’re willing to work hard enough, you can do anything you dream of…

Even if you only have literally half a brain like one of the little girls I highlighted in the post linked above.

Today’s post is an elaboration of these thoughts.

Last week I announced the launch of our new Value Investing Journey Masterclass.

In this 6 – week course, you’ll learn everything you need to know to become a great value investor.

You’ll learn the terms, to what they mean and why they’re important, to multiple different valuations and how to use them, how to read and take notes from financial statements and more.

By the end of this course, you’ll know how to evaluate businesses BY YOURSELF, and you’ll have all the necessary tools to become a great value investor and business analyst.

But you won’t just learn about value investing and finance.

You’ll also learn about how you can get better in many aspects of your life since you can use almost everything in this course every day.

For example; patience, discipline, and emotional stability – the majority of what I talk about in this first week of the program and throughout the entire course at length – are ultra-valuable life skills.

And you can use the skill of value investing every day if you’re a business person or entrepreneur.

Why do I put this kind of stuff in a value investing course?

Because learning how to become better in ALL aspects of your life EVERY SINGLE DAY will help you become great.

Continuing from the example above, we could all use a little more patience, discipline, and emotional stability.

To me, a huge part of becoming your best self is first believing in yourself and believing that You Can Do Anything You Put Your Mind To.

At the beginning of this post is part one of my thoughts on this.

Below is a brand new video I recorded for members of the Value Investing Journey Masterclass where I elaborated on these thoughts.

I’m sharing this exclusive video from the course with you today for FREE because I want to prove to you that you can do the same in your life. You just have to be willing to do the work.

Highlights of the 22-minute video are…

  • I go in-depth on my life story on what led me to where I am today
  • Overcoming severe health issues that have taken 42% of my life thus far and still counting
  • That’s not a typo
  • I’d never thought about or calculated this number before doing this video so I almost break down on camera while talking about this and coming to this realization
  • How you can do anything you put your mind to if you’re willing to work towards your goals and dreams every day
  • Even if for only 30 minutes a day
  • And more…

This is just one of the dozens of videos I recorded for this course. Just one of the 85 lessons – I put about because we’re still tweaking the final number – in this course for you to learn from.

And it’s just one of the dozens of hours of videos, articles, PDFs, book recommendations and more from this program that will help you reach your life’s goals.

To invest in yourself and this Value Investing Masterclassclick here .

I hope this post helps you realize you can do anything you want in life because I believe in you.

Jason

P.S. If you’d like all future posts like this, make sure to sign up to our mailing list for FREE here. You’ll also gain access to free gifts that will help you become a better value investor as well just for signing up.

P.P.S. If you’re looking for a more one on one mentorship and coaching program, check out our intensive Value Investing Coaching Program here.

6 Week Value Investing Masterclass – 6 Weeks To Change Your Life

Launch of the 6 Week Value Investing Masterclass – 6 Weeks To Change Your Life

When I began Value Investing Journey almost 6 years ago, it was 100% meant as a personal journal.

I wanted to have something I could look back years from then so I could see my personal growth as a value investor.

I also wanted to write my investment thoughts and ideas down in a public forum like a blog so I could get feedback to improve faster.

That was it.

There was no grand vision or goals of becoming the world’s best-known value investor. No goals or dreams of helping billions of people or making billions of dollars. And there were no goals of running multiple successful companies or charities.

I just wanted to get better on a daily basis so that at some point I could take care of my family.

Today, almost 6 years later, this blog has changed drastically…

From being completely self-serving to being almost completely geared towards helping and teaching others to become great value investors, business analysts and entrepreneurs.

Today continues to further these goals.

After working for months with my team towards this, thinking about and wanting to do this for years, and having the idea in my mind for almost a decade; today I’m finally announcing the launch of the Value Investing Journey Masterclass.

I’ve wanted to produce this for years for the same reasons I wrote How To Value Invest.

As I learned about value investing I found ZERO resources out there that compiled all the important information into one place and in an easy to understand way.

Everything was either crap, held only partial information, told you that you needed to value businesses – but never showed you how – or dealt completely in theory.

This led to years of wasted time and massive amounts of frustration.

And out of this led both How to Value Invest and this Masterclass.

This 6-week masterclass solves these problems and boils 11 years of knowledge and experience into the best 6-week value investing program my team and I could put together.

The 22-minute video below which details everything you’re going to learn in the course.

Here are some of the things you’ll learn in the video for those who don’t want to watch it…

  • Why I’m so excited about this
  • Why I’ve wanted to do this for years
  • Exactly what you’ll learn in the course’s 85 lessons and more than dozens of hours of content and resources
  • The BRAND NEW and a NEVER-SEEN content I created for this program
  • How you’ll have access to content NO ONE has ever seen before to help you learn better and faster
  • Why I’m releasing this content to help you
  • Why I’m giving you access to some of my $10,000 coaching sessions in this Masterclass to help you learn faster and better
  • Why I’m giving you more than $20,000 worth of value if you invest in this course and yourself today
  • And why you can invest in this program for only $1,497, even though you’re getting more than $20,000 in value
  • At least for now…

I believe so much that EVERYONE should have this program that I’m offering it to you totally risk-free.

The first thing I’m doing is giving it to you on a 14-day FREE trial.

In JUST the first 14 days you’ll have access to 33 lessons containing more than 6 hours of brand new video content and value investment training. This includes access to some of my $10,000 training sessions.

You’ll also have access to dozens of exclusive resources to learn from on top of these lessons. These resources include hours of videos, blog posts, articles, and book recommendations.

After the 14-day trial is up, you’ll have access to a total of 85 – so far, we’re still adding and tweaking things – value investment training lessons. These also include access to some of my $10,000 training sessions.

You’ll also have access to dozens of other exclusive resources, and never before released financial notes. These also include hours of videos, blog posts, articles, and book recommendations.

And this still isn’t all…

At the end of each week in the course, you’ll have access to live Q&A sessions, where students will ask any questions they have and I will answer them live.

This could mean analyzing companies live, digging deep into financials live, digging deep into the meaning of terms like the cash conversion cycle, or ROIC, or doing an intrinsic valuation live.

But this still isn’t all…

I believe so highly in the content of this course that if at any point during the course it doesn’t meet or exceed your expectations, I’m offering a full money back guarantee.

So you’re getting everything mentioned in the video above, plus everything mentioned in this post above, plus everything mentioned in the webinar which is linked below and seen in the screenshot below – all worth more than $20,000 because I keep adding more value to the offer – for only $1,497 today.

You Get All This And Much More By Investing In The Masterclass Now

Plus you have ZERO risks to try the course…

You have a 14-day trial – your credit card WILL NOT be charged until day 15.  AND you have a full money back guarantee if at any time during the course it doesn’t meet or exceed your expectations.

What do I mean by that?

I’m so confident in this course helping you reach your goals and dreams that I’m offering your money back in the following circumstances:

If this isn’t THE BEST value investment training you’ve ever read, watched, learned from, taken, seen, heard of, experienced, etc., I’ll give you your money back at any time while you’re taking the course.

I’m sure you’ve been bitten by taking fantastical online courses in the past.

This is part of the reasons I’m offering you IMMENSE value above, why I’m letting you try the program for FREE without charging your card first, and offering you a full money back guarantee.

Because there are a lot of people offering crap courses out there.

This IS NOT one of those courses.

The other part of why I’m offering everything I am above is because I truly want to help as many people in the entire world as I possibly can.

This is why not only am I offering everything above, but also why I’m offering three different payment plans for this program as well.

My team and I believe so highly in this course that we are currently reaching out to universities, colleagues, high schools, charities, military organizations around the world to get this course to people these entities serve.

This is how much we believe in this program. And this is why we want you and as many others as possible to invest in this. Because we believe it can help change your life and help you reach your goals and dreams.

If you want to invest in this 6-Week Value Investing Masterclass now, go here.

If you want more information, you can go here to watch the webinar replay to learn more about the masterclass and see ALL of the $20,000  in value worth of resources you get not mentioned specifically above by investing in this program.

I hope to see as many of you as possible in this program soon.

Jason

P.S. If you’re not ready to make the investment in this program, check out our brand new Value Investment Training Vault which has a lower investment.

P.P.S. If you’re looking for a more one on one mentorship and coaching check out our intensive Value Investing Coaching Program Here.

Announcing The Launch of The Value Investing Training Vault

Announcing The Launch of The Value Investing Training Vault

I’ve said this several times in the past months and its true again today…

Today, I’m announcing something I’ve wanted to do for years. But until recently – with my team coming on board – haven’t had the time to work on.

Today, we’re announcing the release of the Value Investing Journey Training Vault.

I know that more people out there want to learn how to become great value investors but can’t afford the $10,000 coaching programs available.

And I want to help people across ALL financial spectrums learn the ultra-valuable skill of value investing and business analysis.

So in light of all this, this training vault will have exclusive – and never released – training sessions from past clients.

And yes, this includes video sessions from my $10,000 coaching programs.

In just 6 weeks of these training sessions, this particular client went from minimal value investing knowledge to being able to find companies he wants to research further, to doing full preliminary analysis on these companies, to reading ALL financial statements and valuing these companies by himself.

This is only after 10 sessions over 6 weeks of time.

And I’m releasing these and many more exclusive video training sessions today so you can do the same.

All at a fraction of the cost of this $ 10,000 year-long training program.

But I’m doing even better than that.

I’m giving you $3,991 worth of value in 14 days for FREE just to get you to try this.

In the first 14 days after you sign up for the Training Vault you’ll have access to ALL the following things…

  • 23 video training sessions with more than 3 hours of content which I value at more than $2,500.
  • The majority of these videos are from the $10,000 coaching session.
  • The rest are from other video training sessions with past clients.
  • Plus you’ll gain access to my exclusive preliminary analysis checklist which I value at $597.
  • You’ll also gain access to my exclusive research procedure document valued at $597.
  • And also the Value Investing Journey Glossary of Terms valued at $297.

And this is just in the first 14-day trial period of owning the Training Vault.

Before you have to pay anything.

If you decide to keep your subscription after the 14 days, you’ll gain access to ALL past, present, and future training sessions as new ones become available for as little as $97 a month.

Plus, you’ll gain access to new videos as they become available, along with new resources and exclusive training sessions.

In other words, I’m giving you $3,991 worth of valuable knowledge, skills, and resources today that you can keep even if you don’t continue after the first 14 days.

Plus, you’ll gain access to more exclusive sessions, resources, and videos after the 14-day period as they become available.

Your credit card WILL NOT be charged until the 14-day trial is up.

Below is a quick video detailing all of what you’re going to get during this 14-day FREE trial and some of the other resources and videos you’ll gain access to after the 14-day trial is up.

The total value of JUST the current content in the Training Vault is worth well north of $10,000 and you get this all for only $97 per month. Plus, we’re going to add more exclusive training sessions and videos as time goes.

To gain access to these resources worth $3,991 and begin your 14-day FREE trial today, go here.

Value Investing Journey Logo

P.S. To learn more about our Coaching Programgo here.

P.P.S. To learn more about The Value Investing Journey Masterclassgo here.