Discover Why Warren Buffett Says:
“If I Were Working with Small Capital, I Certainly Would Be Much More Inclined to Look Among What You Might Call Classic Graham Stocks.”
And How You Can Consistently Bring in 15% to 25% Per Annum Using the Graham Approach.
Have you ever read a report by Warren Buffett about how a group of superinvestors made incredible returns year in and year out for decades?
They owned different stocks in their portfolio, ran different companies, and still, each of them was able to achieve an impressive track record of 15% to 25% per annum in their investment returns.
Different stocks. Same results.
Warren Buffett calls them…
The Superinvestors of Graham-and-Doddville
There are altogether 9 of these superinvestors and each and every one of them were students of Benjamin Graham.
Of these 9 superinvestors, 4 of them closely followed how Graham invested during or at some point in their investment careers, notably:
- Walter Schloss — A super investor whose track record puts many professional fund managers to shame. He was a deep value investor, amassing a track record of 15.3% per annum after expenses in nearly 5 decades of investing. Now that’s consistency!
- Stan Perlmeter — A legendary investor who didn’t exactly care about what the news or experts were saying. He does his own research using Graham’s approach and boasted a track record of 23% per annum over 18 years.
- Tom Knapp and Ed Anderson — Founders of Tweedy, Browne Company LLC. In Buffett’s own words, Tom was a ‘beach bum’ who eventually ended owning the beach. Tweedy, Browne achieved staggering returns of 20% per annum for more than 15 years.
- Warren Buffett — Possibly the most well-known of them all. Between 1957 to 1969, Buffett amassed phenomenal 29.5% returns per annum using Graham’s approach before shutting down his partnership to form Berkshire Hathaway with Charlie Munger where he adopted a more value-growth approach to investing.
Who’s Benjamin Graham and what did these Superinvestors learn from him?
Benjamin Graham and His Approach to Investing
Besides being the mentor to the arguably the greatest investor of all time, Benjamin Graham is also widely known as the father of deep value investing.
Graham is also famous for his book The Intelligent Investor which is considered a stock market bible among investors around the world. In fact, Warren Buffett himself has said the book is:
“By far the best book on investing ever written.”
That is some high praise — especially coming from the Oracle of Omaha!
So the question is…
What did Warren Buffett Learn from Benjamin Graham?
Benjamin Graham used a method that has come to be known as Deep Value Investing.
You see, Graham wasn’t interested in buying the hottest stocks if it meant paying too high a price. He’d much rather buy a stock at undervalued prices knowing he got a significant discount from the get-go.
The Key Difference Between Graham’s Deep Value Investing and Buffett’s Value-Growth Investing
As we all know, it can be very difficult to predict the future with any near certainty.
So Instead of chasing growth and future returns, Graham believed in buying undervalued stocks with a large margin of safety between value and price — today. In other words, Graham effectively made a profit the moment he bought a stock, not when he sold.
With Graham’s deep value approach…
- You don’t have to predict if a company will record higher revenues next year or after
- You don’t have to worry if a company’s quarterly earnings meet analyst predictions or not
It doesn’t matter if it’s January, July or December…
As long as you can purchase a stock for significantly less than what it’s intrinsically worth now, you NO longer need to rely on future stock forecasts and growth — which requires a lot more time, effort, and research to get right, even for financial experts and seasoned investors.
So does Deep Value Investing Actually Work?
A Compustat study ranked stocks in deciles according to their price-to-book ratios and tracked their returns from 1951 to 2009 (59 years).
The study found that the stocks with the lowest P/B ratios delivered the highest returns over the long term. In fact, the four deciles with the lowest P/B ratios all beat the S&P 500 annualized returns of 10.7%.
Another recent study by Barclays Research pretty much confirmed the results. In this study, the 20% lowest P/B stocks outperformed the highest 20% P/B stocks by 7% annualised returns across 12 years (2002-2013).
All this points to one conclusion: Cheap, low P/B stocks tend to give better returns than high P/B stocks.
However, if Graham’s deep value philosophy is just all about buying cheap stocks, should we just invest in any low P/B or P/E stock?
Unfortunately, the answer is no.
The Problem with Cheap Stocks
Well, first of all, the research above is done on a wide universe of stocks – which isn’t feasible in reality for the individual investor.
For example, there are about 10,000 stocks in the U.S. market alone and buying just the lowest 10% P/B stocks means purchasing one thousand stocks! The commission fees alone will kill you (and eat into any returns you might have).
Even in Singapore which has around 770 stocks, buying 10% of that is still a very expensive and time-consuming project. Not only that, the lowest P/B stocks change annually, so you have to replace and recycle your stock selections year after year. It might work for a theoretical research study — but not for the individual retail investor in any practical sense.
Secondly, the problem with cheap stocks is that they are usually cheap for a reason — and the reason is always bad news. The company’s sales and profits might be plunging, overall demand is falling, or its industry is going through a prolonged recession.
Even worse, the management might be involved in an accounting scandal, or the company could be running out of cash and is on the brink of bankruptcy.
Would you dare to invest in a company like that?
So if you just closed your eyes and picked any cheap stock to invest in, you’d probably end up with a what we call a “value trap” — a bad company that looks cheap on paper but will never turn around and revalue upwards. You’re basically stuck with a cheap stock that will always remain cheap.
So how then do we find the right kind of deep value stocks to invest in?
How You Can Copy the Strategies of the Superinvestors of Graham-and-Doddville and Achieve 15-25% Returns a Year
That’s where a proven investment process is needed to sift the deep value stocks that have high turnaround potential from the value traps and ‘land mines’ out there.
An investment process that can detect whether a company’s poor results and sentiment is permanent or just temporary.
And also an investment process that’s able to give you a large margin of safety and protect your downside — so you’ll never have to face unnecessary risks just to earn outsized returns.
And this is where we’d like to introduce…
Deep Value Detector™ is an online video training course that focuses on identifying and investing in deep value stocks — the kind of stocks that’ll earn you market-beating returns like the superinvestors of Graham-and-Doddville.
Yes, we’re talking about 15-25% a year investing in deeply undervalued companies with low risk, and without having to make a prediction on how well these companies will perform in the future.
You can even apply deep value strategies on blue-chip stocks like large property conglomerates and Singapore banks and stll achieve sizable returns. Because with deep value, you are essentially ‘profitable’ the moment you purchase a stock.
In fact, here’s what fund manager Mr TAY JUN HAO achieved by investing in deep value stocks alone.
His portfolio returns?
16.95% CAGR and 146.03% in Cumulative Returns!
Disclaimer: Unaudited return numbers above are from the Portfolio Manager’s (Mr Tay Jun Hao) personal brokerage account. They include all real-time transactional costs (brokerage fees, account activity fees and transactional fees) borne by him during its operation.
That’s almost 2X your money in three years…
3X your money in five years…
And a staggering 10X your investment returns in ten years.
If you want to know exactly how Mr TAY JUN HAO does it, then you’re in luck, because he is going to reveal the exact strategies he uses, so you can replicate his success as a deep value investor.
Mr Tay Jun Hao is the portfolio manager of the Heritage Global Capital Fund at Swiss Asia Financial Services Pte Ltd. He graduated with a Bachelor of Laws (Honours) degree from University College London, one of the world’s leading law schools.
Jun Hao won the Orbis Stock Picking Challenge held by Orbis Investment Management Limited , a global investment management firm with over $30 billion in AUM. He beat participants from Oxford, Cambridge, the London School of Economics, University College London and the London Business School, by generating an absolute return of 55.7%, — an outperformance of 21.7% against the benchmark over the course of one year.
He has over six years of experience in the financial markets. From the period of January 2012 to September 2017, he achieved a cumulative return of +146.03% or an annualized return of +16.95%.
Tay Jun Hao is also a frequent guest speaker at institutions such as University College London, London School of Economics, and at investment conferences held in Singapore.TAY JUN HAO
Mr Tay Jun Hao has distilled and laid out his entire deep value investment process in a simple step-by-step format so easy that anyone can follow.
Because Deep Value Detector™ is…
Everything You Need to Know about Deep Value — Including Property Conglomerates, Singapore Banks and Graham’s Classic Net-Net Stocks
Obviously, the information put together in one course like Deep Value Detector™ is frankly priceless — especially when you actually use it and see for yourself just how powerful deep value investing can be.
Because whether you’re an investment newbie, a retail investor trying to grow your returns, or a seasoned investor managing millions of your family’s wealth, the deep value strategies inside will help you become a more precise and profitable stock investor.
Now here’s how Deep Value Detector™ video training course is structured:
Module 1: Deep Value Investing
How to maximize your returns with deep value investing
You’ll discover how Benjamin Graham and Warren Buffett, in his early years, used deep value investing to grow their investment portfolio returns – fast.
In this module, you’ll discover:
- Why deep value? And why it requires NO stock prediction for you to be a successful deep value investor
- The capital cycle and how to take advantage of its ups and downs to make money in the stock market
- Market psychology and why 80% of your results will come from mastering this aspect
Module 2: Deep Value Detector™
The 7-step process to pick the best deep value stocks
We reveal the 7-step Deep Value Detector™ investment process we use to pick the best deep value stocks. If a stock passes all seven criteria in the filtering process, you have yourself an undervalued gem with the turnaround potential to revalue 50% to 200% (or more) upwards.
In this module, you’ll discover:
- How to apply the deep value process, and the type of industries/companies you should avoid
- Why bad news is good news for deep value investors, and how to tell if the pessimism is only temporary
- 3 important financial metrics that show a company has a solid business track record and is able to turn itself around
- One critical metric that reveals whether a company is burning more money than it returns to shareholders, and why you should avoid them
- How to identify if management is aligned with shareholders’ interests, so you can guarantee you’re on the same boat and reap the same rewards
- How to value a stock so you know the best times to buy and sell
- How to construct your deep value portfolio and reduce your non-market risk by up to 96%
Module 3: Investing in Asian Property Conglomerates
How to invest in undervalued property developers
Singapore and Hong Kong are two cities with one of the highest and most resilient real estate prices in the world.
The good news is, the richest families in Singapore and Hong Kong own large amounts of land and property through public-listed companies — giving individual investors, like you and me, the opportunity to ride (and profit) on the coattails of the property tycoons.
In this module, you’ll discover:
- How to fine-tune the Deep Value Detector™ investment process for property conglomerates
- How to identify the best property conglomerates in Singapore and Hong Kong that can ride through the tough times and emerge from a downturn even stronger
- How to value Singapore and Hong Kong property conglomerates and the best times to invest in them
- A current update of the property sector and its historical valuation levels over the last 10 years
- Two research case studies on Singapore and Hong Kong property conglomerates. Are they ripe for investment? Find out for yourself 😉
Module 4: Investing in Singapore Banks
The credit cycle and when to invest in DBS, UOB, and OCBC
Singapore’s financial center manages over S$2.6 trillion in assets and recently overtook Hong Kong as the top financial hub in Asia. Behind this success is the cornerstone of Singapore’s financial industry — its three local banks: DBS, UOB, and OCBC.
In this module, you’ll discover:
- Understanding how the credit cycle works and how it affects banks and the economy
- A current update of the credit cycle in 2016 and the Singapore banks’ financial standing
- The competitive advantage of Singapore banks and why they are among the safest in the world
- 4 key metrics you need to consider when analyzing DBS, UOB, and OCBC
- How to value Singapore banks and its historical valuation levels over the last 16 years
Module 5: Investing in Net-Net Companies
How to invest in deeply undervalued net-net stocks
Benjamin Graham’s favorite deep value strategy was to invest in net-net stocks. Net-net stocks are essentially companies that are trading below their liquidation or net current asset value (NCAV).
In other words, even if the company went bankrupt tomorrow, its liquidation value per share would still be worth more than what you paid for it. Net-net companies are deeply undervalued.
In this module, you’ll discover:
- How to fine-tune the Deep Value Detector™ investment process for net-net stocks
- How to correctly discount a net-net company’s current assets and determine an accurate value of its NCAV
- 4 important characteristics of an ideal net-net stock
- Net-net stocks you must avoid no matter how cheap they look on paper!
- Two research case studies on net-net stocks – one of them currently trading near 0.6 times its net current asset value…
We can promise you that the Deep Value Detector™ training course is really one of its kind. It contains insights and in-depth analysis you’ll not find anywhere else.
The best part is, even if you’re a total newbie with NO formal financial/investment education (and find analyzing/predicting future growth just too difficult and time-consuming), you can’t really go ‘wrong’ with deep value investing because deep value strategies naturally take care of your downside and reduce your risk when investing.
Join Deep Value Detector™ Today and Enjoy Huge, Substantial Savings Instantly
The usual fee for Deep Value Detector™ is USD347/-, but we are giving $100 off to anyone who enrols between 23 Oct-12 Nov 2017.
As such, the fee to join Deep Value Detector™ is only going to be USD247/- today.
NOTE: After the deadline on 12 November 2017 has passed, the course fee is very likely to increase the next time Deep Value Detector™ is reopened.
So this is the best time to join us if you want to build a profitable stock portfolio using the same principles and strategies that have worked so well for more than eighty years.
After all, deep value investing has been proven to work over and over again — from the Superinvestors of Graham-and-Doddville to some of the top performing deep value funds in the world today. Even Warren Buffett, the greatest investor in history, made his best returns (29.3% per annum) in his early years as a pure deep value investor.
But that’s not all…
Because apart from the launch discount offer, we also have 2 extra bonuses for you when you join today.
Direct Q&A Access to Your Lead Trainers
Ask any questions you have about the course and deep value investing
As a member of Deep Value Detector™, you also receive ongoing Q&A support from your lead trainers. You can ask us any real-life questions you might have about deep value investing and we’ll answer your queries LIVE in the member’s section just for you.
Now we want to make this clear that this isn’t for us to give you any stock recommendations or tell you when to buy/sell a stock. But this is a place for you to really seek us out as coaches and ask us the questions that will help make you a better investor. We just want you to know that we are here to support your growth and education if you should choose to join us as a Deep Value Detector™ member.
LIVE 1-Day Deep Value Detector™ Workshop
You receive ONE access pass to this exclusive closed-door workshop that’s content-packed to the brim with real-life deep value case studies and walkthroughs on how to apply deep value strategies effectively.
You get the straight facts from Mr TAY JUN HAO, so you can walk away with absolute clarity and newfound knowledge on how to effectively deploy your deep value strategies.
So ask questions, clarify doubts, and learn from the man himself — you’ll be glad you did.
** Workshop Dates **
18 November 2017, Saturday, 9AM to 5PM
25 November 2017, Saturday, 9AM to 5PM
** This workshop is a BONUS and may be taken away the next time we relaunch Deep Value Detector™ in the future. So this is really your best chance to take full advantage of what this inaugural launch has to offer…
Test-Drive Deep Value Detector™ Risk Free for 30 Days
As always, The Fifth Person provides “insurance” for investment education needs.
We understand that you want to be sure that is money well spent and that our courses provide real value that will move you closer to your investment and financial goals.
So for the next 30 days after your purchase, test-drive the entire Deep Value Detector™ course — watch all the vidoes, download the material, etc., and if you are still not 100% satisfied for any reason whatsoever with Deep Value Detector™, then simply let us know and we will return you every single penny. No questions asked.
This way, your purchase is “insured” and you are 100% protected.
It’s a pretty bold statement and we can only make this type of guarantee if we are fully certain that what you learn in Deep Value Detector™will give you positive results. All you have to do is to follow the instructions and the process laid out in the course.
So we strongly urge you to test out Deep Value Detector™ for yourself today!
Get $100 OFF Deep Value Detector™
+ Q&A Support + Live Workshop + 30-Day Risk-Free Guarantee
This offer will expire 12 November at 23:59 hours.
And it’ll be Oct 2018 the next time Deep Value Detector is open.
In fact, there is no guarantee that the price will stay the same next year. Yup, the next time DVD is open, the price may increase.
So in order for you to qualify for the $100 savings off Deep Value Detector™ and the 2 launch bonuses, you need to act and secure your spot now.
The sooner you join the course, the more time you have to review the entire course before the workshop. This will give you better clarity and allow you to get results faster.
So, here’s what you need to do…
Simply scroll down below and you will see a bright orange button. Click on it and it will bring you to a secure checkout page. All you need to do is to fill up your details and complete the purchase.
Once the transaction is successful, you will then be automatically be taken to your member’s registration where you can create your unique login and password to enjoy lifetime access to Deep Value Detector™.
It’s really that simple.
With that, I’ll to see you inside the member’s area and we look forward having you at our exclusive, closed-door workshop for deep value investors.
P.S. Don’t put off test-driving Deep Value Detector™. You’ll be getting powerful insights and strategies that will grow your portfolio and with the 30-day risk-free guarantee, you have absolutely nothing to lose.
P.P.S. Be quick because from now until 12 November 23:59 hours, you can actually get $100 OFF the usual price for Deep Value Detector™ — plus 2 launch bonuses that’ll ensure you’ll never get left behind. So act now…
What is Deep Value Detector™?
Deep Value Detector™ is an online video training course that’s designed to teach you how to invest in deep value stocks. The course also covers how to invest in Asian property conglomerates, Singapore banks, and net-net stocks using a deep value approach.
You can access Deep Value Detector™ anytime you want and go through the modules at your own time and pace from the comfort of your home (or office).
Why deep value? Does it work?
Deep value investing was the original investment style Warren Buffett used while he was learning under his mentor, Benjamin Graham, early in his investment journey.
Between 1957 to 1969, Warren Buffett enjoyed the best returns in his career and generated a compounded annual growth rate of 29.5% applying the deep value method taught by Benjamin Graham.
“The highest rates of return I’ve ever achieved were in the 1950’s. I killed the Dow. You ought to see the numbers. I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that.” – Warren Buffett
In a nutshell, instead of chasing future growth and future stock returns, deep value investors look for undervalued stocks with a large margin of safety between value and price. So instead of predicting how well a company might (or might not) perform in the next year few years, deep value investors are more concerned about protecting their downside and getting a good price out of their investment today – and the upside naturally will take care of itself.
What's the difference between Deep Value Detector™ and the rest of your courses?
Deep Value Detector™ focuses on deep value strategies and investing in deep value stocks with a large margin of safety and a turnaround potential to earn sizable returns.
The Investment Quadrant™ focuses on value-growth strategies and investing in high-quality companies with wide economic moats for long-term growth and capital gains.
Dividend Machines™ focuses on dividend strategies and investing in dividend stocks and REITs that pay consistent dividends and deliver long-term dividend growth.
All three strategies are not exclusive to each other; you can marry the approaches in your overall stock portfolio according to your investment goals and priorities.
Are there any other dates available for the Deep Value Detector™ LIVE workshop?
Unfortunately, no. Those are the only two dates available for the Deep Value Detector™ LIVE workshop. So please make time to attend the workshop if you wish to come!
- 18 November 2017, Saturday
- 25 November 2017, Saturday
Please also note that the workshop is a special bonus and may not be included as a bonus the next time we reopen Deep Value Detector™.
Any discounts for Alpha Lab/Investment Quadrant/Dividend Machines members?
Deep Value Detector™ is already discounted by $100 OFF for this launch period. There are no additional discounts 🙂