So you want to be a value investor?
So you want to be a value investor? The first thing you should do is avoid short-term based thinking. This means avoiding the excitement of the markets daily fluctuations, emotional discussion board posts, and “research” based on technical analysis and short-term trends.
Value investors concentrate on the long-term, so it makes sense to use your time reading about long-term strategies. In addition to keeping up with industry news, I encourage you to learn about value investing by prioritizing your reading as follows:
1. Books
2. Magazines
3. Newspapers
4. Blogs/Websites
5. Analyst research
It may surprise you that I hold outside research in such low esteem. I do this for two reasons: (1) analyst expectations are usually baked into the share price and offer no unique information and (2) analysts are very concerned with the short-term view — value is only a component of the recommendation.
In the coming posts, I will recommend specific items within each category to read.
