UndervaluedSecurities.com founder and team adhere to value investing principles as practiced by Benjamin Graham and Warren E. Buffett:

• We focus on business operating performance of individual companies, not on the general stock market movements and various economic predictions.
• We always apply "Margin of Safety" on every capital allocation decision to minimize downside risks; Warren Buffett once said: "Rule No.1: Don't lose money. Rule No. 2: Don't forget rule No. 1."
  
• We are patient investor and believe that in the short term the market is psychologically driven but in the long term, it will reward great businesses or assets selling at discounted price.
• We are flexible in buying and selling our investments based on overvaluation and undervaluation; at some point either due to the size of market saturation, even a seemingly great high-growth business may generate very dismal stock performance for the next 10 years due to overvaluation.
• We avoid businesses in which managements only enrich themselves rather than their companies' shareholders (afterall, shareholders are the ultimate owners of the company).

"An investment operation is one which upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative." ~ Benjamin Graham

 

Our investment processes:

 

• Gather invesment ideas and insights from wide variety of sources

Annual reports, newspaper, magazines, screening, etc.

• Bottom-up analysis

Company fundamental condition and direction. Quantitative and qualitative analyses.

• Top-down analysis

Industry and sector condition and direction. Quantitative and qualitative analyses.

• Market analysis

Market condition and direction. Quantitative and qualitative analyses.

• Valuation Analysis

Intrinsic Value vs. Market Value analysis. Quantitative, and qualitative analyses.

• Decision Analysis & Monitoring

Buy, Sell, Hold, Add, Reduce, or Do Nothing Analyses.

 

• Financial Statement:
  • Balance sheet
    
  • Cash flow
  • Revenue & income
  • Shareholder equity
  • Financial notes & proxies
  • Financial statement risks
• Business:
  • Business model
  • Management
    
  • Growth strategy
  • Competitive advantage and sustainability
  • Catalysts
  • Enterprise risks

Disclaimer: The above are investment principles of Cheetah Capital Management which manages UndervaluedSecurities.com Total Return Fund (Virtual Fund) porfolio. Cheetah Capital Management is a west coast-based private investment management company that invests in undervalued securities globally. UndervaluedSecurities.com is affiliate of Cheetah Capital Management. All the contents on this site is for entertainment purpose only.

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