Value Investors Association

Welcome to the Value Investors Association!  We highly encourage you to explore our website to take full advantage of our guides to help you become a better investor. If you’d like to learn the easiest way to manage your retirement funds while saving a ton of money consider joining our wonderful association full of other like minded individual investors. If the …

December Update

While I’ve highlighted the large cash holdings of a few value investing legends due to current market valuations, the news coming out of the investment banks couldn’t be brighter. While many financial market metrics have reached or exceeded levels prior to the previous two financial crashes, the focus right now is on equity growth relative to alternative assets, which have …

November Update

This is far from an ideal environment for true value investors as market valuations remain in rarified air. The median EV/EBITDA and Price/Book ratio of the S&P 500 are in the 98th percentile historically. The P/E to growth (PEG) ratio for the S&P 500 is the highest it’s ever been! One of my core investment philosophies is that I can’t …

October Update

While I would much rather read headlines proclaiming how great value investing has been performing, I’m equally appreciative of headlines such as the following recently run by Morningstar: “Is Value Investing Broken?” The reason being, as value investing falls out of favor, value stock valuations become more attractive, setting up the back drop for phenomenal potential returns going forward. The …

September Update

More investing legends are starting to sound the alarm regarding current market valuations. Jim Rogers said the following earlier this year “…get prepared because we’re going to have the worst economic problems we’ve had in your lifetime or my lifetime….” Earlier this summer, famed bond investor Jeffrey Gundlach, CEO and CIO of DoubleLine, said the following.”If you’re a trader or …

July Update

It’s no secret that loose monetary policy coupled with low interest rates, has helped propel the market to historic highs. While I still believe stocks are richly valued on traditional financial metrics, they appear fairly valued when compared to the 10-year Treasury Bond Yield taking profit margins, dividends and earnings growth into account. With the continued focus on low Treasury …

June Stock Market Update

High profit margins and low Treasury yields continue to support lofty equity valuations. The S&P 500’s 1.9% annual dividend yield is very attractive compared to the 2.16% 10 Year Treasury Yield when taking taxes into account. This has helped propel the S&P 500 to a stellar 8.7% return over the first half of the year. Optimism around equity growth remains …

May Stock Market Update

Investors have become quite complacent as evidenced by the recent 15 year low in the VIX “fear index” and the growing number of crowded trades. In the February issue, I had mentioned that the P/E ratio of the top quintile of stocks was over twice as high as the next quintile. This is a gap larger than at any other …

April Stock Market Update

Last month I mentioned I was doing well in my NCAA basketball tournament brackets. Unfortunately (for me) North Carolina overcame their heartbreaking loss last year and won it all this year. If North Carolina had lost to either Oregon or Gonzaga, I would have won one of the brackets. Now it’s time to gear up for the hockey play-offs and …

March Stock Market Update

Like many sports fans, I love this time of the year. High school sports are wrapping up their championship games and the theatrical, always unpredictable NCAA basketball tournament is in full swing. I’m in two NCAA bracket pools this year, with my final teams still vying for the overall championship. While you might not care, there is a purpose for …

February Market Update

Unless you’re a momentum investor, finding attractively priced stocks to initiate new positions in, has never been more difficult. Case in point. Legendary value investor Seth Klarman who runs the Baupost Group, now has over 30% of his funds in cash waiting for a better time to invest. “I must remind you that value investing is not designed to outperform …