Value Investing with Sage

Time: 60-90 minutes Cost: $0 to learn (plus investment capital when ready) Platform: Ape AI (askape.com) + Your brokerage Best for: Investors seeking undervalued companies with long-term potential Companion: Sage (for value analysis and strategy) + Money (for financial metrics)

What You'll Learn

By the end of this workflow, you'll be able to:

  1. ✅ Understand what value investing is and why it works

  2. ✅ Identify undervalued stocks using key metrics (P/E, P/B, P/S)

  3. ✅ Calculate intrinsic value to determine if a stock is "on sale"

  4. ✅ Distinguish between value traps and genuine opportunities

  5. ✅ Use Sage to find value stocks that match your criteria

  6. ✅ Build a value-focused portfolio from scratch

  7. ✅ Understand the patience required for value investing success

What is Value Investing?

The Philosophy

Value investing is buying stocks that trade for less than their intrinsic (true) worth. Think of it as shopping for $100 bills selling for $60.

The Core Principle:

"Price is what you pay. Value is what you get." — Warren Buffett

The market sometimes misprices stocks due to:

  • Short-term bad news (temporary problem, not permanent)

  • Sector-wide sell-offs (baby thrown out with bathwater)

  • Lack of attention (boring companies nobody talks about)

  • Fear and panic (emotional selling)

Value investors exploit these mispricings by buying when others are fearful and selling when others are greedy.

Historical Performance

Why Value Investing Works:

  • From 1927-2020, value stocks outperformed growth stocks by ~3% annually

  • $10,000 invested in value stocks (1927) = ~$90 million (2020)

  • Same amount in growth stocks = ~$30 million

  • Fama-French research shows "value premium" persists across decades

Famous Value Investors:

  • Warren Buffett - Turned $10,000 into $300+ billion using value principles

  • Benjamin Graham - Father of value investing, mentor to Buffett

  • Charlie Munger - Buffett's partner, focused on "wonderful companies at fair prices"

  • Seth Klarman - Baupost Group, 20%+ annual returns for 40 years

Value vs. Growth Investing

Aspect
Value Investing
Growth Investing

Focus

Undervalued, established companies

Fast-growing companies regardless of price

Metrics

Low P/E, P/B, P/S ratios

High revenue/earnings growth rates

Timeframe

Patient (2-5+ years for revaluation)

Can be shorter (riding momentum)

Risk

Value traps (cheap for a reason)

Overvaluation (paying too much)

Best Markets

Bear markets, recessions

Bull markets, economic expansions

Examples

Banks, industrials, energy

Tech, biotech, emerging sectors

Neither is "better" - both have their place. This workflow focuses on value.

Key Value Investing Metrics

Metric #1: Price-to-Earnings (P/E) Ratio

Formula:

What it means: How many dollars you pay for each $1 of earnings.

Example:

  • Stock trades at $100

  • Company earns $5/share (EPS)

  • P/E = $100 / $5 = 20

Interpretation: You're paying $20 for every $1 of annual earnings.

What's "Low"?

  • S&P 500 average: 15-20 historically

  • Value territory: P/E of 10-15

  • Deep value: P/E under 10

  • Expensive: P/E over 25

Important Notes:

  • Compare P/E to industry peers (not just absolute number)

  • Tech companies often have higher P/E (30-50+) - that's normal

  • Banks/industrials typically have lower P/E (8-15)

  • Negative P/E = company is losing money (avoid for value investing)

Using Sage to Find Low P/E Stocks:

Metric #2: Price-to-Book (P/B) Ratio

Formula:

What is Book Value?

  • Company's total assets minus total liabilities

  • What shareholders would get if company liquidated today

  • Also called "equity" or "net worth"

Example:

  • Stock trades at $50

  • Book value per share is $40

  • P/B = $50 / $40 = 1.25

Interpretation: Stock trades at 1.25× its book value.

What's "Low"?

  • P/B under 1.0: Trading below book value (potential bargain)

  • P/B 1.0-3.0: Reasonable for most companies

  • P/B over 3.0: Expensive (paying big premium over book value)

Best Used For:

  • Banks and financial institutions (assets are mostly cash/securities)

  • Manufacturing companies (lots of physical assets)

  • Real estate companies

Less Useful For:

  • Tech companies (assets are intangible: software, patents, brand)

  • Service businesses (value is in people/processes, not physical assets)

Example Value Screen:

Metric #3: Price-to-Sales (P/S) Ratio

Formula:

What it means: How much you're paying for each dollar of the company's sales.

Example:

  • Company has market cap of $10 billion

  • Annual revenue is $5 billion

  • P/S = $10B / $5B = 2.0

Interpretation: Paying $2 for every $1 of sales.

What's "Low"?

  • P/S under 1.0: Very cheap (often undervalued or distressed)

  • P/S 1.0-2.0: Value territory

  • P/S 2.0-5.0: Fair to moderately expensive

  • P/S over 5.0: Expensive (growth premium)

Why It's Useful:

  • Works for unprofitable companies (unlike P/E)

  • Harder to manipulate than earnings

  • Good for cyclical industries (earnings vary, but sales more stable)

Best Used For:

  • Retail companies

  • Airlines and transportation

  • Cyclical industrials

  • Early-stage companies (not yet profitable but generating revenue)

Metric #4: PEG Ratio (P/E to Growth)

Formula:

What it means: Whether the P/E ratio is justified by the company's growth rate.

Example:

  • Stock has P/E of 20

  • Earnings growing at 25% annually

  • PEG = 20 / 25 = 0.8

What's "Good"?

  • PEG under 1.0: Undervalued (growth justifies or exceeds P/E)

  • PEG around 1.0: Fairly valued

  • PEG over 2.0: Overvalued (paying too much for growth)

Why It's Better Than P/E Alone:

  • A stock with P/E of 30 might be cheap if earnings are growing 40%/year

  • A stock with P/E of 10 might be expensive if earnings are declining

Example: Company A: P/E = 15, Growth = 5%, PEG = 3.0 (expensive!) Company B: P/E = 25, Growth = 30%, PEG = 0.83 (undervalued!)

Company B is the better value despite higher P/E.

Metric #5: Dividend Yield

Formula:

Why Value Investors Love Dividends:

  • Provides income while waiting for stock to appreciate

  • Dividend-paying companies tend to be stable (can't fake cash payments)

  • Forces companies to be disciplined with capital

  • High yield can indicate undervaluation

Value Investor's Dividend Sweet Spot:

  • 3-6% yield: Solid income + reasonable safety

  • Above 6%: Investigate carefully (could be distressed)

  • Below 2%: Not really a value play (unless growth is high)

Warning Signs:

  • Yield doubled overnight = stock crashed (why?)

  • Payout ratio over 100% = dividend likely to be cut

  • Dividend hasn't grown in 5+ years = stagnant business

The Value Investing Process

Step 1: Screen for Value Candidates

Using Sage for Initial Screening:

Prompt Template:

Example Screen (Conservative Value):

What Sage Will Provide:

  • List of 10-15 stocks matching your criteria

  • Current valuation metrics for each

  • Brief business description

  • Reasons why the stock might be undervalued

  • Any red flags to investigate further

Step 2: Deep Dive Analysis (Pick Top 3-5)

From Sage's list, pick 3-5 stocks that interest you most. Now dig deeper.

Questions to Ask Money Monty:

What Money Will Analyze:

  • Complete financial picture with trends

  • Comparison to historical valuation and peers

  • Specific reasons for current undervaluation

  • Potential catalysts for stock appreciation

  • Risk factors and red flags

  • Clear buy/hold/avoid recommendation

Step 3: Calculate Intrinsic Value

Intrinsic value = What the stock is actually worth (independent of current price)

There are several methods. Here's the simplest for beginners:

Method 1: P/E-Based Valuation

Formula:

Example:

  • Company earns $5/share (EPS)

  • Historical average P/E is 15

  • Industry average P/E is 18

  • Conservative fair P/E estimate: 15

Intrinsic Value = $5 × 15 = $75/share

Current price: $50 Margin of Safety: ($75 - $50) / $75 = 33%

If margin of safety is 25%+, it's a buy candidate.

Ask Sage to Calculate:

Method 2: Dividend Discount Model (For Dividend Stocks)

Formula:

Example:

  • Stock pays $3/year dividend

  • You require 10% return

  • Dividend has grown 5%/year historically

Intrinsic Value = $3 / (0.10 - 0.05) = $3 / 0.05 = $60

Current price: $45 Margin of Safety: ($60 - $45) / $60 = 25%

Ask Sage:

Method 3: Ask Sage for Multiple Valuation Methods

Step 4: Identify the "Why It's Cheap" Reason

Every undervalued stock is cheap for a reason. Your job: Determine if it's temporary or permanent.

GOOD Reasons (Temporary - BUY):

✅ Sector-wide sell-off:

  • Example: All bank stocks down 20% due to rate fears

  • Company fundamentals unchanged

  • Market overreacting to macro news

✅ Short-term earnings miss:

  • Company missed quarterly earnings by 2%

  • Long-term growth story intact

  • Stock sold off 15%+ on overreaction

✅ Cyclical downturn:

  • Industry in temporary slump (housing, commodities, travel)

  • Company has strong balance sheet to weather it

  • Will recover when cycle turns

✅ Boring/unloved sector:

  • Nobody talks about it (utilities, industrials, consumer staples)

  • Steady earnings, just not "sexy"

  • Market ignores it, creating value

✅ Spin-off or restructuring:

  • Company spun off from parent

  • Forced selling by index funds

  • Fundamentals improving but market hasn't noticed

BAD Reasons (Permanent - AVOID):

❌ Dying business model:

  • Example: Declining revenue for 3+ years

  • Technology disruption (Blockbuster vs. Netflix)

  • Can't adapt to market changes

❌ Unsustainable debt:

  • Debt-to-equity ratio over 2.0

  • Interest payments eating into profits

  • Risk of bankruptcy

❌ Management problems:

  • CEO scandal, fraud, incompetence

  • High executive turnover

  • Consistently poor capital allocation

❌ Permanent competitive disadvantage:

  • Competitors have better products/tech

  • Losing market share year after year

  • No moat, no differentiation

❌ Secular decline:

  • Entire industry shrinking (newspapers, landline phones, coal)

  • No amount of good management can fix

  • Fighting against inevitable trends

Ask Sage to Diagnose:

Step 5: Check for Margin of Safety

Margin of Safety = The gap between intrinsic value and current price

Benjamin Graham's Rule:

"Only buy stocks trading at least 25-30% below intrinsic value."

Why It Matters:

  • Protects you if your valuation estimate is wrong

  • Provides cushion against unexpected bad news

  • Gives room for stock to appreciate to fair value

Example:

  • Intrinsic value estimate: $100

  • Required margin of safety: 30%

  • Maximum buy price: $70

Current price: $65 ✅ (35% margin - GOOD) Current price: $75

❌ (25% margin - BORDERLINE) Current price: $85

❌ (15% margin - WAIT)

Conservative Approach:

  • 30%+ margin = Strong buy

  • 20-30% margin = Buy if high conviction

  • 10-20% margin = Watch and wait

  • <10% margin = Pass

Step 6: Look for Catalysts

Catalyst = An event that could trigger the market to re-rate the stock

Common Catalysts:

  • Earnings surprise: Company beats estimates after quarters of misses

  • New CEO/management: Activist investor or turnaround expert comes in

  • Asset sale: Company sells underperforming division, unlocks value

  • Dividend increase: Signals management confidence, attracts income investors

  • Buyback announcement: Company buying back shares (reduces supply, increases EPS)

  • Sector rotation: Investors rotating back into unloved sector

  • Analyst upgrade: Major bank initiates coverage with "Buy" rating

  • Inclusion in index: S&P 500 addition forces funds to buy

Ask Sage:

Important: Don't require a catalyst to buy (value can be unlocked slowly), but having one increases odds of timely revaluation.

Building a Value Portfolio

Portfolio Construction Principles

1. Diversification (Essential):

  • Minimum 10-15 stocks

  • Spread across 5+ sectors

  • No single stock over 10% of portfolio

  • Mix of deep value, moderate value, and "value with catalysts"

Why? Value investing has higher single-stock risk. Diversification protects against value traps.

2. Patience (Critical):

  • Value stocks can take 2-5 years to be re-rated

  • Don't expect quick gains

  • Measure success in years, not months

  • Dividend income helps you wait

3. Rebalancing:

  • When a stock reaches intrinsic value (or above), consider trimming/selling

  • Redeploy proceeds to new undervalued opportunities

  • Don't fall in love with stocks - be willing to sell when fairly valued

Sample Value Portfolio ($10,000)

Allocation Strategy:

  • 40% Deep Value (P/E <10, P/B <1.0) - Higher risk, higher potential return

  • 40% Moderate Value (P/E 10-15, P/B 1.0-2.0) - Balanced

  • 20% Value ETF (Diversification backstop)

Example Holdings:

Deep Value (40% = $4,000):

  • 10% Bank of America (BAC) - $1,000

  • 10% Ford (F) - $1,000

  • 10% Citigroup (C) - $1,000

  • 10% Vale (VALE) - $1,000

Moderate Value (40% = $4,000):

  • 10% CVS Health (CVS) - $1,000

  • 10% Walgreens (WBA) - $1,000

  • 10% AT&T (T) - $1,000

  • 10% Pfizer (PFE) - $1,000

Value ETF (20% = $2,000):

  • 20% Vanguard Value ETF (VTV) or iShares Russell 1000 Value (IWD) - $2,000

Portfolio Characteristics:

  • Blended P/E: ~11

  • Blended P/B: ~1.3

  • Average dividend yield: ~4.2%

  • Annual dividend income: ~$420

Expected Performance:

  • Value stocks historically return 10-12% annually long-term

  • With dividends reinvested: ~12-14% potential

  • Requires 3-5 year holding period for full revaluation

Alternative: 100% Value ETF Portfolio

For hands-off investors:

Allocation:

  • 50% VTV (Vanguard Value ETF) - Large-cap value

  • 30% VBR (Vanguard Small-Cap Value ETF) - Small-cap value (higher return potential)

  • 20% VYMI (Vanguard International High Dividend Yield) - International value

Pros:

  • Instant diversification (1,000+ stocks)

  • Low maintenance

  • Captures value premium automatically

  • Low fees (0.04-0.15% expense ratios)

Cons:

  • Can't outperform (just match value index)

  • Less control

  • Lower yields than hand-picked portfolio

Best for: Beginners who want value exposure without stock picking

Value Traps: What to Avoid

Value Trap = A stock that looks cheap but deserves to be cheap (or get cheaper)

Red Flag #1: Deteriorating Fundamentals

Warning signs:

  • Revenue declining 3+ consecutive years

  • Profit margins shrinking

  • Free cash flow turning negative

  • Increasing debt levels

Example:

  • Retail stock with P/E of 8 (looks cheap!)

  • But revenue down 15% last 3 years

  • Profit margins compressed from 10% to 3%

  • This is cheap for a reason - AVOID

Check with Money:

Red Flag #2: Unsustainable Dividend

Warning signs:

  • Payout ratio over 100% (paying more than earning)

  • Dividend hasn't grown in 5+ years (frozen = trouble)

  • Free cash flow doesn't cover dividend

  • Recently cut dividend

Example:

  • Stock yields 8% (looks attractive!)

  • Payout ratio is 120%

  • Dividend likely to be cut soon

  • When cut, stock will crash further - VALUE TRAP

Check with Money:

Red Flag #3: Cheap But Getting Cheaper

Pattern:

  • Stock has low P/E for years

  • Keeps getting cheaper

  • "Dead money" - just sits there declining

Example:

  • 3 years ago: P/E of 10, stock at $50

  • 2 years ago: P/E of 9, stock at $40

  • 1 year ago: P/E of 8, stock at $30

  • Today: P/E of 7, stock at $25

This is not value - it's a failing business!

Check with Sage:

Red Flag #4: Heavy Debt Load

Warning signs:

  • Debt-to-equity ratio over 2.0

  • Interest coverage ratio under 3× (earnings barely cover interest payments)

  • Debt coming due soon (refinancing risk)

Example:

  • Company has $10B in debt

  • Only earns $500M/year (20× debt-to-earnings)

  • If rates rise or business weakens, could face bankruptcy

  • VALUE TRAP despite low P/E

Safe Debt Levels:

  • Debt-to-Equity under 1.0 = Very safe

  • 1.0-2.0 = Manageable

  • Over 2.0 = Risky (investigate carefully)

Check with Money:

Red Flag #5: Accounting Red Flags

Warning signs:

  • Frequent restatements of earnings

  • Complex accounting (hard to understand)

  • Auditor changes or disputes

  • Large discrepancies between reported earnings and cash flow

Rule: If you can't understand the financials, don't invest.

Check with Sage:

Using Sage for Value Investing

Best Prompts for Finding Value Stocks

Weekly Value Screen:

Value + Catalyst Screen:

Turnaround Opportunities:

Value Analysis Prompts for Individual Stocks

Complete Value Assessment:

Peer Comparison for Value:

Value + Quality Screen:

Patience: The Value Investor's Superpower

Why Value Investing Requires Patience

The Reality:

  • Value stocks can take 2-5 years to be re-rated by the market

  • Sometimes longer (7-10 years for deep value)

  • You'll often be "wrong" for 1-2 years before being proven right

  • Your portfolio may underperform during bull markets

Why Most People Fail at Value Investing:

  1. They sell too soon (give up after 6 months of underperformance)

  2. They chase performance (switch to growth stocks during rallies)

  3. They lack conviction (didn't do enough research to hold through volatility)

  4. They need excitement (value investing is boring by design)

Warren Buffett's Wisdom:

"The stock market is a device for transferring money from the impatient to the patient."

How to Stay Patient

1. Track Multiple Metrics, Not Just Price:

Don't obsess over daily stock price. Instead, track:

  • Quarterly earnings (are they growing?)

  • Revenue trends (improving or deteriorating?)

  • Debt levels (being paid down?)

  • Dividend payments and growth (increasing over time?)

  • P/E ratio compression (is it re-rating higher?)

Example:

  • Stock bought at $50 with P/E of 10

  • 2 years later: Stock at $52 (only +4%)

  • But: EPS grew from $5 to $6.50 (+30%)

  • New P/E: $52 / $6.50 = 8 (even cheaper!)

Conclusion: Stock is MORE undervalued now, not less. Business improving, market hasn't noticed yet. HOLD (or buy more).

2. Collect Dividends While You Wait:

Many value stocks pay dividends. This makes waiting easier.

Example:

  • Buy stock at $50 with 4% yield

  • Year 1: Collect $2/share in dividends

  • Year 2: Collect $2.10/share (5% dividend growth)

  • Year 3: Stock re-rates to $65, collect $2.20/share

Total 3-year return:

  • Capital gain: $15 ($50 → $65)

  • Dividends: $6.30

  • Total: $21.30 on $50 investment = 42.6% (12.5% annualized)

Dividends cushion your wait and compound over time.

3. Maintain a "Value Journal":

When you buy a stock, write down:

  • Date purchased: [Date]

  • Price paid: $[X]

  • Investment thesis: Why is this undervalued? (2-3 paragraphs)

  • Intrinsic value estimate: $[Y]

  • Margin of safety: [%]

  • Expected holding period: [years]

  • What would prove me wrong: (Specific metrics or events)

Review quarterly:

  • Is the thesis still intact?

  • Have fundamentals improved, worsened, or stayed the same?

  • Has the margin of safety expanded or contracted?

This prevents emotional selling and keeps you focused on fundamentals.

4. Reframe "Underperformance" as "Opportunity":

When your value stocks underperform growth stocks:

  • Don't get discouraged

  • View it as an opportunity to buy more at lower prices

  • Remember: Mean reversion is powerful (what goes down often goes back up)

Historical Pattern:

  • 1990s: Growth crushed value (tech boom)

  • 2000-2009: Value crushed growth (tech bust, financial crisis)

  • 2010-2021: Growth crushed value (tech boom 2.0)

  • 2022-2024: Value outperformed (inflation, rate hikes)

Cycles repeat. Patience wins.

Value Investing Success Stories

Case Study #1: Warren Buffett and American Express (1960s)

Situation:

  • 1963: American Express faced "Salad Oil Scandal" (fraud by subsidiary)

  • Stock crashed from $65 to $35 (-46%)

  • Market feared bankruptcy

Buffett's Analysis:

  • Core credit card business unaffected

  • Brand reputation intact (people still using Amex)

  • Trading at P/E of 10 vs. historical 20

  • Margin of safety: ~50%

Action:

  • Buffett invested $13 million (40% of his fund)

  • Held patiently while others panicked

Result:

  • 5 years later: Stock at $180 (5× return)

  • Became one of Buffett's greatest investments

  • Held for decades, worth billions

Lesson: Temporary problems in quality companies create value opportunities.

Case Study #2: Financial Crisis (2008-2009)

Situation:

  • 2008-2009: Financial stocks crashed 50-80%

  • Bank of America: $50 → $3

  • Citigroup: $55 → $1

  • Wells Fargo: $45 → $8

  • Market feared total collapse

Value Investor's Analysis:

  • Not all banks would fail (government wouldn't allow it)

  • Some had strong balance sheets (Wells Fargo, JPMorgan)

  • Trading at P/B ratios under 0.5 (below liquidation value)

  • 50-70% margin of safety if they survived

Action:

  • Value investors (including Buffett) bought aggressively

  • Required conviction and courage

  • Many held cash waiting for this opportunity

Results (2009-2015):

  • Bank of America: $3 → $18 (6× return)

  • Citigroup: $1 → $50+ (50×+ return)

  • Wells Fargo: $8 → $55 (7× return)

  • JPMorgan: $15 → $70 (5× return)

Lesson: The best value opportunities come during maximum fear.

Case Study #3: Tobacco Stocks (2010s)

Situation:

  • 2010-2020: Tobacco stocks unloved due to health concerns

  • Altria, Philip Morris: Consistent earnings, low P/E (8-12)

  • High dividend yields (6-8%)

  • Market assumed industry would die

Value Investor's Analysis:

  • Declining volume but pricing power intact

  • Shifting to reduced-risk products (vapes, heat-not-burn)

  • Massive free cash flow generation

  • Trading at 30-40% discount to fair value

Action:

  • Value investors accumulated positions

  • Collected 6-8% dividends while waiting

  • Reinvested dividends for compound growth

Results:

  • Altria: Total return ~200% over decade (with dividends reinvested)

  • Philip Morris International: ~150% total return

  • Massive dividend income along the way

Lesson: "Boring" or "unloved" industries can be excellent value plays.

Common Beginner Questions

Q: How long should I hold a value stock?

A: Until one of these happens:

  1. Stock reaches intrinsic value (or above) → Consider selling

  2. Fundamentals deteriorate permanently → Sell immediately

  3. You find a better opportunity → Swap into better value

  4. Thesis proves wrong → Exit and admit mistake

Minimum hold period: 2-3 years (value takes time to be realized) Average hold period: 3-7 years Buffett's hold period: "Forever" (for his best picks)

Q: What if the stock keeps dropping after I buy?

A: Ask yourself:

  • Have the fundamentals changed?

  • Is my thesis still intact?

  • Is the margin of safety now even larger?

If fundamentals intact: This is an opportunity to buy more (average down) If fundamentals deteriorating: Cut losses and exit

Q: Should I use value investing in a bull market?

A: Yes, but:

  • You'll likely underperform growth stocks during euphoric rallies

  • Stay disciplined (don't chase overvalued growth)

  • Use the time to accumulate positions while others chase momentum

  • When the cycle turns, you'll be glad you did

Q: How much of my portfolio should be in value stocks?

Aggressive value investor: 80-100% Balanced investor: 40-60% (rest in growth, index funds) Conservative beginner: 20-40% (learn while managing risk)

Start with 20-30% allocation, increase as you gain experience and conviction.

Q: Can I combine value and dividend investing?

A: Absolutely! They complement each other well.

  • Many value stocks pay dividends (financials, consumer staples, industrials)

  • Dividends provide income while waiting for revaluation

  • Focus on "value + yield" stocks (P/E <15, yield >3%)

Q: What sectors are best for value investing?

Historically value-rich sectors:

  • Financials (banks, insurance) - Often trade at low P/E and P/B

  • Energy - Cyclical, frequently undervalued during downturns

  • Industrials - Boring but steady, often overlooked

  • Consumer Staples - Defensive, sometimes undervalued during growth manias

  • Utilities - Slow growth, high dividends, often cheap

Less common (but possible):

  • Healthcare - Can find value in pharma during patent cliff fears

  • Materials - Cyclical, value opportunities during downturns

  • Real Estate - REITs sometimes trade below NAV

Usually NOT value sectors:

  • Technology - Typically growth-oriented (but exceptions exist)

  • Communication Services - Mixed (some value, some growth)

Success Checklist

By the end of this workflow, you should have:

🎉 Congratulations! You've learned the time-tested principles that have created more billionaires than any other investing strategy!

What's Next?

Now that you've mastered value investing basics:

Related Workflows:

Continue Learning:

  • Read "The Intelligent Investor" by Benjamin Graham (the value investing bible)

  • Study Warren Buffett's annual letters (free on Berkshire Hathaway website)

  • Follow value investors on Twitter/X (find contrarian thinkers)

  • Join value investing communities (r/ValueInvesting on Reddit)

Practice:

  • Run weekly value screens using Sage

  • Analyze 1-2 value stocks per week

  • Paper trade value positions before using real money

  • Track your picks (even if you don't buy) to learn pattern recognition

Remember: Value investing requires patience, discipline, and independent thinking. You'll often be "wrong" in the short term before being proven right in the long term.

"Be fearful when others are greedy, and greedy when others are fearful." — Warren Buffett

Your future self will thank you! 🚀📈

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