Behavioral Value Investor

The Behavioral Value Investor Substack merges value investing with behavioral finance to guide investors through successfully navigating market complexities. It emphasizes long-term value creation, effective management, the wisdom of investment legends, and adapting strategies in the face of technological changes and economic factors.

Value Investing Behavioral Finance Investment Strategies Company Management and Strategy Economic Trends and Inflation Risk Management Interviewing CEOs Investment Analysis and Patterns

The hottest Substack posts of Behavioral Value Investor

And their main takeaways

The Market Does Not Care!

156 implied HN points • 10 Mar 24

The market does not care about titles, appearances, or labels - what matters are the quality of your decisions over time.
It doesn't matter which school you went to, what clothes you wear, or if you have a fancy office - the effort you put into research and your convictions is key.
The market doesn't care what others think about you, so it's important to focus on your own investment process and not be swayed by external opinions.

5 Insights From Warren Buffett’s 2023 Annual Letter

193 implied HN points • 26 Feb 24

💰 Finance Investing Market behavior Business Analysis Economics Regulation

Good long-term businesses are harder to find than you think. Predicting long-term winners isn't easy, and financial forecasts often miss the mark. Practice humility in investing and be ready to adjust your thesis.
Avoid dealing with dishonest individuals. It's difficult to spot insincerity, and once dishonesty is detected, it's best to move on immediately.
Markets are still prone to irrational behavior. Human nature hasn't changed, and rapid information dissemination can lead to herd mentality and market inefficiencies. Manic behavior in markets is here to stay.

The Benefits of Dynamic Value Investing

178 implied HN points • 06 Feb 24

💰 Finance Investing

Predicting long-term success of companies is difficult at the beginning of the timeframe.
Value investors often fail to update their value estimates based on new evidence.
Investors should focus on how company quality and intrinsic value are changing, rather than staying fixed.

Harnessing The Current: Benefiting From Value Creation In Investing

185 implied HN points • 16 Jan 24

💰 Finance Investing Value Creation Management Stocks

Investing is simple but not easy - don't underestimate its complexity.
Focus on companies with management teams that prioritize value creation and capital allocation.
Long-term value growth in investing is driven more by effective management than external factors like new technology or market trends.

What Company Earnings Calls Should Be About (But Are Not)

193 implied HN points • 08 Jan 24

💰 Finance Investing Long term Management Capital allocation

Over 50% of an earnings call focuses on short-term demand trends, which is not helpful for long-term investors.
Earnings calls should address long-term value, competitive environment changes, and management's strategies for improving competitive advantage.
Investors and CEOs should prioritize questions that affect the business's value in the long term, rather than short-term fluctuations.

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The Real-World Ravages Of Inflation

111 implied HN points • 28 Jan 24

💰 Finance Economics Investing Inflation Government Policy

Inflation can erode purchasing power over time, leading to financial strain for workers like teachers.
Budget constraints due to inflation can create challenges for both employees and employers in reaching fair agreements.
Understanding historical trends can help predict future economic outcomes and guide investment decisions.

Warren Buffett’s Rare Big Investing Mistake

148 implied HN points • 06 Aug 23

💰 Finance Investing Mistakes Valuation Profitability Lessons

Even successful investors like Warren Buffett make mistakes, which is a crucial lesson for all investors.
When investing, it's important to stick to your circle of competence to avoid big investing mistakes.
Paying a high price for an investment with little room for error can be a risky move, highlighting the importance of a margin of safety.

The Evolution Of Value Investing

170 implied HN points • 09 Jul 23

💰 Finance Investing Value investing Behavioral Finance

Value investing remains rational and involves buying stocks below their intrinsic value.
Intrinsic value is still based on future cash flows and excess assets like in Graham's days.
The importance of fundamental analysis and adapting to technological changes in value investing has increased.

Interviewing Company CEOs: The Must-Ask Question Checklist Every Investor Needs

126 implied HN points • 30 Jul 23

💼 Business Investment Financial Analysis Company strategy Company Culture

Prepare questions for a CEO interview to focus on 'what' and 'how' without being accusatory.
Before interviewing a CEO, decide your goals such as learning, relationship building, or understanding culture.
Topics to cover during a CEO interview include strategy, customers, economics, capital allocation, company culture, and CEO motivations.

The Exceptional Value Of Rare Reinvestment Economics

118 implied HN points • 16 Jul 23

💰 Finance Investing Value Growth Capital allocation Management

Rare businesses with high returns and ability to reinvest capital are very valuable.
Most businesses do not have the qualities for exceptional value.
Challenges in investing in rare businesses include rarity, high cost, and uncertainty about future growth.

What You Can Learn From An Unusual Investment

111 implied HN points • 23 Jul 23

💰 Finance Investment Stocks Business Research Risk

Being patient can lead to finding high-quality investments at a low price.
Thorough research is key to identifying temporary issues in a company and assessing its long-term potential.
Investing in a company during a time of maximum pessimism can present opportunities for significant gains.

The Unexpected Business Strategy That Outsmarted The Competition

96 implied HN points • 09 Apr 23

💼 Business Strategy Competition Innovation Management Marketing

Al Schuman propelled Ecolab to success without attending business school.
Al differentiated Ecolab's products and created barriers to entry for competitors.
By targeting under-served market segments, Ecolab secured large global deals and established a competitive advantage.

Why Risk Management Will Not Produce The Best Investing Returns

66 implied HN points • 25 Jun 23

💰 Finance Investing Risk management

Risk management may not yield the best investment returns.
Predicting the future is uncertain, hence the importance of risk management.
Having a diversified portfolio that can perform decently across different scenarios is key to successful investing.

What Are The Dangers And Rewards Of Doubling Down On Your Investments?

89 implied HN points • 30 Apr 23

💰 Finance Investments Risk management Behavioral Finance Value investing Financial Markets

Doubling down on investments can be risky, make sure to assess potential downsides.
Even successful investors can make mistakes and suffer losses by doubling down.
Before doubling down on an investment, consider factors like financial leverage, funding requirements, and management strength.

Investing Insights From The 2021 World Chess Championship

66 implied HN points • 18 Jun 23

💰 Finance Investing Chess Adversity Decisions

The 2021 World Chess Championship had a surprising outcome with Magnus Carlsen winning decisively.
The key lesson for investing from this championship is the importance of temperament over theoretical knowledge.
Maintaining rational decision-making during adversity is crucial for successful investing.

6 Insights from Charlie Munger At The 2023 Daily Journal Annual Meeting

96 implied HN points • 26 Feb 23

💰 Finance Investing

Charlie Munger emphasizes the importance of recognizing and overcoming denial in decision-making.
It's wise to avoid financial leverage, even if you think you're the exception.
Great businesses with amazing management are not always priced to be great investments.

3 Investing Patterns That You Should Know

65 HN points • 29 May 23

💰 Finance Investing

Understanding why something is mis-priced is crucial in investing
Identifying and taking advantage of investing patterns can lead to profitable opportunities
Different types of investing patterns include cyclical problems, turnarounds, and underappreciated long-duration growth

The Adventures Of Mr. Stock Pickens McPickens

59 implied HN points • 07 May 23

💰 Finance Investing Stocks Market Analysis Investment Strategies

Investing right away at a 9% IRR can be a good option.
Waiting for 3 years in search of better investments can bring higher returns.
Being overly optimistic in stock picking can lead to significant losses.