A Guide To Value Investing For Novice Investors

Making money in the stock market is about one thing only: identifying and exploiting mispricings

Stock-picking is probability-based – in essence, when purchasing what you believe to be an undervalued stock, you’re making a calculated bet that the price will appreciate in the future (return to fair value or beyond) based on the information that is available to you, so it pays to conduct thorough due diligence (assess a company’s prospects) using high-quality information

More is not always better when it comes to due diligence – there is a point at which the value of further research drops off as extra factors bear little or no relevance to the investment decision

Patience is key – your thesis needs time to play out, don’t sell until it does

Adopt a growth mindset – know that this is a complex game and seize learning opportunities

Investing is part science, part art – maintain an objective view and don’t assign too much weight to any one factor $Tesla (TSLA.US)$ $AMC Entertainment (AMC.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Apple (AAPL.US)$ $NVIDIA (NVDA.US)$