Value investing questions from Dave Mauder

**blast_investor** Tue Mar 21, 2006 9:42 pm

Value investing questions from Dave Mauder
Quote: Hello Henry:

I found your site today through a link on pfblog.com. I’ve been searching for a great way to invest for the best long term success, and value investing looks like it could be the ticket. I’ve been most fond of index funds lately because of the “no-brainer” approach it offers. What books and/or resources do you recommend for me to start learning more about value investing? Would you consider value investing an active or passive approach? I don’t really want to be an active trader since I’ve already learned that only loses my money, but I would like to be somewhere between active and passive.

Thanks for your time!

Dave Mauder

Hi Dave,

Value investing has the best long term record of all the trading or investing methods in stock market. In fact, it is so good that it created the 2nd richest person in the world.

There are many books and resources on this method. There is no real secret around this method.

Here is related thread:

Best Value Investing book for New Investors

Typically, value investing is considered "passive" method. Infrequent trade is norm in value investing world.

However, value investing is not totally "passive" method. If you manage your own portfolio, you would have to "actively" seek better value or check value of your current positions although there are no trades on the portfolio. Even if you follow a newsletter or follow a value investing formula (such as Joel Greenblatt's magic formula), you are still required to have "strong" mentality or guts. Many times, value investors stand against crowds lonely. It is tough to do that psychologically.

Regards,