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Our ParadigmAtlas Advisors LLC, has a sharp focus and believe our art is value investing, we believe that if we can buy something for less than its tangible net worth we will be successful in the long term. Some examples of our value investing would be buying oil at $15/bbl when it was out of favor in the late 90's only to watch it go up over 300% over the next 5 years. Or buying real estate in 2001 after 9/11 when the fed started its most aggressive lowering of interest rates in history.After which real estate prices soared in some areas over 500% in just a few years! ... through leverage the return on investment was an astonishing 1,000%. These investments even with these outsize returns carried only an average degree of risk because of the value of their tangible net worth. In stocks, a company's value is called its book value. Essentially, if you sold everything the company owns - inventory, buildings, even the desks and chairs - how much would be left over? Now take a look at what the market thinks the company is worth. You'll find that in its market cap - the number of stock shares the company has times the stock's current price. That's how much money you'd need if you wanted to buy every single share of the company's stock. Say a company has a book value of $100 million…but a market cap of just $50million. You could buy every share of its stock for $50 million…and get $100 million worth of stuff! That's a 50% bargain! As you can imagine, bargain stocks like these have a history of going up over time. |
