The STRIDE Blog

Keep Calm and Carry on Value Investing

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Becoming a 3D Value Investor is not complicated.

In fact, much of it is about calmly selecting opportune moments, as opposed to any great rush of activity.

As a 3D VI, your portfolio management and long term investment strategies are clear, well mapped and intelligent.

You have bought into fundamentally strong businesses, for the right price at the right time. Now, it's simply a question of waiting to sell. 

You're in the perfect position. Fundamental analysis tells you that you've bought great stock at a significant discount. The stock market will catch up and over-react as it always does; it's only a matter of time.

All you have to do is wait until the right moment to act again, when you'll sell those shares for the great profit you know will come: it's so simple.

Yet so many investors, despite knowing better, get swept up in market anxiety and act before they should through panic. 

This is when the Four Principles of 3D Value Investing can help. Reminding yourself of these four simple rules will keep you calm until it's time for action that will bring you profit.

Cup of tea (or G&T) optional.

Principle 1: Always Invest With a Margin of Safety

As a 3D VI, you know you've got a great deal because we only buy into strong businesses when their share prices dip below their fair market value.

We determine margin of safety in terms of depth based on the outcome of our fundamental analysis, so you can always feel calm in the knowledge that you've chosen strong stock that can weather an economic storm. 

Buying stock at a good discount can bring 3D VIs substantial profit, once the market inevitably revalues the stock and the price rises dramatically. It also protects the investment from potential losses if the business falters.

Principle 2: Welcome Market Fluctuation 

Just because the market is under stress, doesn't mean you have to be. 

If stock markets fall, 3D VIs recognise this as a time of great opportunity. We form our own opinions of fair value based on careful examination of financial facts. If a business is sound and undervalued we buy regardless of what the market is doing.

We understand the fickleness of the stock market and every day we see businesses being sold at a price that seriously undervalues them.

We also know that one day the market will change its mind and the price will eventually reflect the fair value of that same strong business it undervalued yesterday. The price will swing up again beyond our target exit point. And that's when we sell, for a great return.

Principle 3: Know What Type of Investor You Are

Stick to your investment philosophy; don't be swayed. It will bring you the most consistent results. 

3D VIs are secure in our investment choices because we've applied specific techniques to select them. We are not interested in following the market herd. Our investment principles allow us to cut our own path through global stock markets based on opinions formulated on fundamental analysis, valuation and timing.

Principle 4: Portfolio Distribution

Don't put all your nest-eggs in one basket.

The world of the 3D VI is expansive, covering all sectors, geographies and currencies. Make the most of it with a broad selection of intelligent investments to minimise risk.

How STRIDE works

Learn how to become a 3D Value Investor by downloading our complimentary eBook.

3D Value Investing eBook

Topics: STRIDE, 3D Value Investing

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3D Value Investing: Triangulating The Best Investment Targets

3D Value Investing uncovers the best businesses for investment, the fair value of those businesses and the best times to buy in and sell out. This approach to long-term investing results in higher returns with lower risk.

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