The Complete Guide to Investing in Value Stocks

This residential undertow is scheduled to be held from 11th to 14th January 2024, at the campus of Pune-based FLAME University. The last stage to wield is 10th December, 2023. Click here to read increasingly and apply if you are interested in joining this course. Since it’s a classroom course, seats are limited.

The undertow will take you through the unshortened process of practicing value investing to identify long term wealth creating stocks. This includes helping you:

• Create the right value investing mindset and build a behavioural framework to stave biases and create the right investment thought process.
• Assess merchantry quality – separating good from gruesome
• Analyze financial statements to find well-performing businesses
• Calculate intrinsic valuations using various methods
• Identify competitive moats and whether they are sustainable
• Build a portfolio of sound, wealth-creating businesses

Module I

Focus – How compounding works, fundamentals of value investing, how to think well-nigh the stock market, how to deal with Mr. Market

• Value investing 101 and the idea of compounding
• How to think well-nigh the stock market
• Lessons from history of financial markets
• Key focus on the ideas of long-term compounding, why Ben Graham’s big ideas of Mr. Market and margin of safety matter, how to think well-nigh unconfined and gruesome businesses, moats, wanted allocation, and price vs value.
• Key ideas like looking at simple businesses, researching stocks well, and focusing on risks, and paying the right prices
• What has worked well in investing, how to think like the world’s weightier investors, introduction to multidisciplinary thinking

Module II

Focus – Complete focus on the behavioural side of investing and studying cognitive psychology for minimizing mistakes that often hurts investment visualization making

• Human (mis)behaviour and causes of misjudgement
• Mental models in a value investor’s toolkit

Module III

Focus – Analyzing businesses carefully, understanding what makes few businesses great, some good, and most gruesome, how moats are constructed, how few of them sustain over long period of time, how most others lose their way, importance of staying within whirligig of competence, looking at a merchantry as a moving picture.

• Businesses – great, good, gruesome, and how to differentiate between them.
• Studying some successful listed Indian businesses using the lens of learning created in this module –
• What has made these businesses succeed over the years?
• How have they built impregnable moats? Was it merchantry quality? Was it unconfined management?
• Will their moats sustain into the future? Why? Why not?

Module IV

Focus – Financial Statements Analysis. Learn the language of merchantry i.e., accounting, how to unriddle financial statements, identify connections between them, how to snift financial frauds

• How to read yearly reports
• Analyzing financial statements – Income statement, Balance Sheet, Cash Flow Statement
• Most important numbers and ratios
• Assessing management quality – How numbers help

Module V

Focus – “Intrinsic value is fuzzy but very important,” said Warren Buffett. Keeping this in mind, learn how to value businesses using simple models

• Understanding value, and why not everything can be valued
• Myths and truths of valuations
• Concept of present value
• Intrinsic valuation vs relative valuation
• DCF – Calculation process, do’s and don’ts
• Few other simple valuation methods
• Valuation specimen studies of listed Indian companies
• Margin of safety – Key ideas and sources of margin of safety

Module VI

• Building investing checklists
• Other Key Ideas (like concentration vs. diversification, when to sell, immutable laws of investing, mortiferous sins of investing)

The undertow is suitable for individuals who are just starting off on their investment journey or are into the early phase of the same. It will be a value add:

• If you are willing to learn to practice the cadre principles of Value Investing to pick stocks and how to make them work for you
• If you are looking to build your own investment philosophy based on what has worked for the world’s weightier investors over the past few decades
• If you are willing to learn and understand the most important concepts of merchantry and financial analysis, and valuations
• If you are willing to learn a stress-free way of wealth megacosm from stocks
• If you are willing to learn and understand the practical, time-tested concepts of behavioural finance

The undertow is not suitable for you if you are looking for concepts and ideas in Technical Analysis, Derivatives, or speculation/stock trading. Also, there won’t be any stock recommendations/tips provided during the course. Applicants should thoughtfully consider these points surpassing applying for the course.