Simon Caufield: Why value investing works

True Value’s Simon Caufield didn’t trust the financial services industry to make money for him, so he decided to take control of his own investments. And it’s proved a remarkable success. Here, he discusses the joys of being a value investor, why it works, and how it enables him to sleep easily at night.

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  • Lupulco

    Interesting video, I invest my own money, i’m not in your league. I started just after the 2008 fall and after the %rates on ISA’s etc fell.
    I did several things,
    1] The experts are not always expert?
    2] Rather then just accept the low % rates on offer and moan.
    3] I educated myself on the Market and equity investing.
    I soon learned that;
    a] The Market is not logical, [i was an engineer, before i retired]
    b] It works on Greed, Panic and Fear?
    Fear that you may lose out if the stock rises and you sell too early
    Fear that the stock falls and you lose out by not selling.
    The above two causes most of the panics and swings.
    Greed causes you to hang on too long and can cause a loss when the stock turns.
    Also Companies, or the Market do not give damn, about the shareholder. So if the share is not doing what i want or if it as rose to my sell price, i sell.
    I am married to my wife, not the Company.

  • Colin Selig-Smith

    Like your video, I think I’m of a similar sentiment, my best investment last year for example was Nokia, purchased while everyone was shouting “bankruptcy bankruptcy”. Yet here they are with a two new ranges of phones that they’re having difficulty keeping up with world wide demand for.

  • Rob Smith

    I learnt a huge amount from Simon in the 2 years that I subscribed to True Value. I am convinced of the merits of value investing although I think it should only be one part of your approach to making money. I disagree with Simon on the use of stop losses. I was a novice investor when I signed up with True Value and didn’t use them. I now do and would have lost a lot less money if I had used them as a True Value subscriber. If a stock falls 20%, the stop loss kicks in at 10% (for example) – if the true value argument still holds, you buy again once it has stopped falling. Simon is extremely knowledgeable and I am grateful for his insights but I think the issue of stop losses is one that those beginning the investing journey should be made much more aware of in Simon’s newsletter.

  • Niccolò

    Sorry, I can’t find the paper mentioned in the video.. may you plaese link me? Thank you

  • Moderator

    Niccolò, you can find the paper here: http://www.tweedy.com/research/papers_speeches.php

  • Alan Kent

    I subscribed to this clown’s atrocious True Value newsletter for 18 months before I saw sense and cut my (considerable) losses. Avoid him like the plague.

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