Stop wasting so much time and energy trying to find 'that' perfect stock. Instead discover...
The Buffett Way
But Then You Will Never Ever Have To Worry About Money.
Life doesn't seem fair.
For some people, a stock market crash - as we saw for the most of 2008 and early 2009 - means taking just a small hit on the standard of living. At most, it means less of eating out, traveling to less expensive foreign locations, and buying less expensive clothes and accessories at luxury stores.
But then for some, it means working extra years to make up for the lost funds that were set apart for child's education or self-retirement.
It could even mean working on a second job to earn back the money lost in a stock market crash.
You know some people have so much money that they do not have to worry about it. They are free to choose how they spend their entire lifetime, even if their investments crash.
Maybe you are one of them, too.
But if you're not quite there yet, mark our words - we are about to show you a way to 'safely' create tremendous wealth over the next few years so that you will never ever have to worry about money.
In fact, over the next few minutes, we are going to unravel in front of you a simple, yet foolproof investment strategy that has made millionaires out of several small investors.
We will also tell you about the man - Warren Buffett - who has propounded and practiced this very strategy...
...to multiply his wealth a whopping 4,344 times over a 45-year period!
In short, we will explain to you an investment strategy that would have turned an investment of Rs 10,000 invested in 1964 to a whopping Rs 4.3 crore at the end of 2009.
Or for that matter...
If you are wondering what this money could have bought you, read this...
While we explain to you this investment strategy that has multiplied money 4,344 times over a 45-year period, you will also understand how you can practice it to generate tremendous returns on stocks over the next few years.
Let us introduce...
. . . Just Like Warren Buffett, The Greatest Investor Of All Time
Let's face it. There are literally thousands of people out there in the world and in India trying to invest just like Warren Buffett. But only a few are actually getting Buffett-like results.
See, it's no wonder why so many people want to emulate Buffett. After all, this legendary investor is, without doubt, the greatest stock market investor of all-time and has consistently generated stupendous returns for a very long period of time...
...like multiplying his investment in stocks such as -
Yes, these returns are real! In fact, we will soon show you how Buffett has achieved this.
But before that, let us reveal to you...
To Invest Like Warren Buffett
As we proceed, here's a question for you.
Assume that a stock that you bought a week back when you thought it to be a safe and sure bet, falls by 20% on a single day.
Suppose that the stock we are talking about here is Infosys, India's second largest and most respected IT services company.
If you were holding Infosys on 10th April 2003, were you disturbed seeing the company's stock price crash 37% in the next two days?
Assume for once that you knew that this company i.e., Infosys sold something that was going to revolutionise how companies operate globally. You also knew that it was managed by competent and visionary people, and had a consistent track record of growth - that is, until it missed the brokers' quarterly earnings estimates by a few rupees in April 2003 and got pounded down by 27% in a single day, and 37% over two.
What did you do?
You might've sold this stock and cursed yourself for buying it in the first place.
Or then, you might've sat tight and done nothing until you recovered your loss...and then sold.
Nevertheless, if your answer is that you studied and reconfirmed your assessment of Infosys...then bought more of the stock as it crashed, you must be happy to know that you have grown your money nearly 7 times over the succeeding 7 years.
Buffett says, "Take advantage of the market's temporary insanity to load up on quality stocks at bargain prices." And if you held on to Infosys as it crashed, you would have done just that - taken advantage of the market's temporary insanity to load up on a quality stock at a bargain price.
See, it is this very strategy that has not only helped Buffett become the second-richest man in America with a net worth of US$ 47 billion, but has also made him the most watched - and copied - investor across the world.
Now, if you wish to invest the way Buffett did to create his huge wealth...
. . . And Build A Stock Portfolio That Could Multiply Your Wealth
Several Times Over The Next 5 to 10 Years!
ValuePro is a recently launched service from Equitymaster. In fact, it's just into its sixth month from launch.
Reduced to its essence, our mission through this service is to identify 12-15 stocks over a 2 year period by following Warren Buffett's time-tested investing principles.
Through ValuePro, we will help you identify companies, which could see their stock prices multiply 4 to 6 times over the next 5 to 10 years.
In fact, since we launched this service in November 2009 (yes, 6 months have already passed of this 24 months service!), we have already identified 4 such valuable stocks for our subscribers. While two of these stocks have already risen 37% and 51% since recommendation, we still see a lot of returns to be made from them over the next 5-10 years...as also from the other recommendations so far.
Not to forget the other 9-12 opportunities that we will identify over the remaining 18 months that remain of this service.
As Buffett has done, ValuePro will help you achieve such returns by identifying businesses...
These are some of the critical parameters that Buffett gives weight to while identifying his stocks...and our process through ValuePro is not going to be any different.
Simply put, we will be identifying companies that are doing simple businesses that can be easily understood, have consistent earnings history and sustainable growth path, are managed by honest and competent people, and whose stocks are available at attractive prices with an adequate margin of safety.
In fact, the 4 stocks we have already recommended to existing ValuePro subscribers fit these criteria to the tee!
After all, Buffett has made his entire fortune - US$ 47 bn at last count - following these very principles of investing.
And he's achieved tremendous success with not one, not two, but several stocks that have multiplied several times over a number of years.
Like his investment in Coca-Cola, where every 100 dollars he invested in 1988 now stands at nearly 1,600 dollars...or simply put, an investment that has multiplied 16 times in around 22 years! See this...
Among other reasons, the key factor that prompted Buffett to buy Coca-Cola (as he later clarified) was that he believed in the simplicity and sustainability of its business.
See, it's not so easy identifying simple and sustainable businesses like Coca-Cola, but then this is what we will be striving to do for you through ValuePro. After all, we have done this in the past as we'll soon show you.
But before that...
You know, the 16 times return on Coca-Cola is just among the lesser returns that Buffett has made over the years. Washington Post, the newspaper company that he started acquiring in 1973, has till date multiplied his money a whopping 95 times! And this is keeping out the significant dividends that the company has paid out over these years.
As per the reasoning he later offered, Buffett bought Washington Post simply because the company, apart from doing good business, was selling at a much lower price than its true business value.
ValuePro will emulate Buffett's mantra of buying stocks when they are selling cheap as compared to their true worth.
Another of Buffett's investments that turned extremely successful was 'Gillette', the shaving products major. Buffett's simple reasoning to buy Gillette can be summed up in his own words - "I go to sleep in peace every night realising that every morning when I wake up, millions of men will wake up with me and shave."
Not to mention that Buffett multiplied his investment in Gillette almost 9 times in 14 years.
That Can Multiply Your Wealth Several Times
Over The Next Five To Ten Years?
See, these examples of Coca-Cola, Washington Post, and Gillette validate the basic tenet of Buffett's strategy - invest in companies you believe will provide long-term investment value, rather than investing in fads or 'hot' themes that may be profitable in the short run, but are likely to run out of steam in the long run.
In a very similar way, the core of ValuePro will be to identify a portfolio of a few 'such' stocks for you that will multiply your money several times over the next ten years.
Let us make it even clearer....
To help you make your investment decision, wouldn't you want to see it through the eyes of Buffett?
Now, you obviously can't call him up to get his advice. But you can be a part of the ValuePro.
No second-guessing, no listening to vague advice, and no more worrying about whether you're making the right decision.
In short, ValuePro will be the 'next best thing' to asking Buffett himself if you are making a good investment decision.
Yes, it will be really that simple!
Also, with ValuePro on your side, YOU WILL NEVER HAVE TO...
ValuePro will take all the guesswork out of investing.
But how could this be? How could something so simple produce such phenomenal results?
See, we fully agree to what you must be thinking right now.
Believing and following any principle, even if it is proven and simple, calls for absolute faith in it. And we do not expect you to believe us without getting fully convinced about our claims.
In fact, you must be itching to ask us many questions.
Your Question # 1. "How will you identify those above-average stocks?"
Answer: Simply put, if the company is doing well and is managed by smart, honest and visionary people, eventually its stock price will reflect its inherent value. As you will come to know over the next few months, we will devote most of our attention not in tracking share prices, but in analyzing the economics of businesses, while also assessing their managements.
See, our answer is not plucked out of thin air. In fact, in the past, we have identified above average stocks for our subscribers ...and that is what brings us the greatest happiness.
By advising the 'right' kind of stocks, following the 'right' kind of investment principles, we have seen our subscribers multiply their money several times over the past few years.
Take for example Titan, which we had recommended in July 2003. We asked ourselves - what could be a simpler business than selling watches and jewellery? And we had a difficult time answering this question. Apart from its simple business, we also believed that Titan had all the qualities to become a wonderful business over the long run. The stock was also trading cheap then, with its price being just around 0.4 times its sales per share.
Our conviction paid off...and till date, Titan has multiplied almost 31 times since our recommendation.
Now consider Voltas, a stock that we first recommended in June 2003. The stock was then trading at just around 0.3 times the company's annual sales per share despite the company having all the ingredients of becoming a robust growth story in the future.
After restructuring its business, Voltas has not looked back and those who acted on our recommendation then have multiplied their money almost 25 times till-date.
Then look at the automaker M&M, which we had first recommended in April 2003. Now this was a company under trouble when we had recommended it. But our belief in it was based on the turnaround of the company's tractor business that had seen sales decline for the five years preceding our recommendation. We also expected tremendous value creation from the company, especially from its IT subsidiary - Mahindra-British Telecom (MBT, which later became Tech Mahindra).
Investors who acted on this recommendation then have multiplied their money around 19 times till-date.
See, these companies - Voltas, Titan, and M&M - were all simple businesses when we had identified them seven years back. And these stocks were then trading at very attractive valuations compared to what we had thought were their true business values.
Over the years, these stocks have generated huge returns for investors who bought them then, and have had the patience to hold on to them over the years.
There are similar other examples that we can talk about...like Tata Power, which has multiplied around 12 times since our recommendation of January 2003...
...or for that matter, Thermax, which has risen around 20 times since our May 2003 report...
Your Question # 2. "How many stocks in total will you identify for me?"
Answer: We will apply Buffett's investing principles to focus our attention on just a few companies. And how many will be a few?
Even the world's best investors have discovered that, on an average, just fifteen stocks give your portfolio enough diversification. For you, a legitimate case can be made for ten to twenty.
Similarly, there will be times when given the market's mood, as we saw for the whole of 2008, we will find several opportunities to recommend to you. We will then recommend stocks in a bunch.
Within the remaining 18 months of this service, you can expect to receive from us 9-12 recommendations that will complete your 'ValuePro' portfolio.
This is apart from the 3 valuable stocks we have already recommended (and the 4th that we recommend later today) since we launched ValuePro in November 2009...and which are still valid recommendations that you can buy into!
Your Question # 3. "How much allocation do I make towards each of your recommendations?"
Answer: It will be advisable that each investment you make you should have the courage and the conviction to have at least 6% to 10% of your portfolio in that stock.
Only such a concentration will enable these stocks to have a really meaningful impact on your portfolio.
Your Question # 4. "How long must I hold those stocks?"
Answer: There will be no hard and fast rule. While selling a stock from the portfolio for taking advantage of a better opportunity is advisable, as a general rule of thumb, the idea will be to hold the stocks for somewhere between five to ten years.
"Why Should I Do This?"
Okay, let us put it the other way - what could be the opportunity loss for you for not practicing ValuePro strategy and otherwise following the herd?
See this chart...
The above chart depicts the increase in book value per share of Buffett's company Berkshire Hathaway vis-à-vis the performance of S&P 500 during the period 1964 to 2009.
While the S&P 500 multiplied by around 54 times during this period, Berkshire's book value multiplied 4,340 times!
Simply put, it's a difference between turning every Rs 100 to:
See, by talking about these kinds of comparisons, we do not wish to lead you to believe that these returns can be achieved by you by following Buffett's investing style.
In fact, in this modern age, it simply isn't possible to beat the market as Buffett has done so successfully over his life.
So we do not want to promise you the moon (...this one's really invincible!)
However, what we will promise you is that by being part of ValuePro, you will generate tremendous wealth for yourself over the next few years...
...by becoming an integral part of the process that aims to emulate Buffett's investing principles and take advantage of the wealth-generating opportunities that are available here in India.
"How Capable Is Equitymaster To Do
What Buffett Has Done?"
You know, many investors in the US have become wealthier by...
Not only retail investors, there are several fund managers in the US who do exactly this.
But then copying Buffett's investments in India isn't possible for the fact that Buffett hasn't bought any Indian stock (simply because markets here aren't deep enough to stomach the size of stock purchases he can make in the US).
Second, you cannot really buy a Berkshire stock sitting here in India to benefit directly from Buffett's investing philosophy.
So how do we plan to help you earn Buffett-like returns sitting here in India advising Indian stocks? And do we have the pedigree to do that?
We appreciate your questions.
To say the least, our philosophy all these years has been to recommend stocks that pass the strict evaluation tests as practiced by the best investors in the world - from Benjamin Graham, Peter Lynch, and John Templeton, to of course Warren Buffett.
And we have done this with immense success for our subscribers...and that is what brings us the greatest happiness.
By advising the 'right' kind of stocks, following the 'right' kind of investment principles, we have seen our subscribers multiply their money -
See, we will be fooling ourselves if we tell you that we have been 100% right in all our recommendations all these years...we have had our share of mistakes...
...but most of the times our subscribers have benefited enormously from our recommendations...all those who have believed in our long term philosophy of viewing companies and recommending stocks of only the worthy ones.
In fact, over 80% of all our buy and hold recommendations since 2003 have met their targets within the recommended time periods.
And all these years of precious experience is now what we bring to you by focusing on the learnings of Warren Buffett, one of the great investing gurus we have talked about and have followed intensely.
We are so confident of these principles that we'd also invest some of our own money in the stocks we recommend to you through ValuePro.
Yes, you read that right. We will be investing Rs 100,000 in every stock that we recommend to you through ValuePro. And just so that you have an advantage, we will be buying the stock 10 trading sessions after we recommend it.
In short, we'll be on the same side as you.
ValuePro is your (and also our) chance to practice sound investing principles and generate tremendous returns over the next few years...just like Buffett has done.
To Immediately Start Investing Like Buffett!
You won't believe how simple the process we follow in the ValuePro will be until you try it.
Not only will this service help you step-by-step in building a portfolio of 12-15 stocks that pass the strictest of Buffett's investing principles, you will also discover through our monthly newsletters...
As we have mentioned above, you will find all these investing gems through our monthly letters, which will also talk about -
After all, you will be following hard, time-tested rules of successful, profitable investing.
See, ValuePro isn't another 976-page Buffett biography (as 'Snowball' was) or an academic examination of his investments. This is a systematic process to actually invest like Warren Buffett.
Of Learning, Disciplined Investing And Ultimate Wealth Creation
When you subscribe to ValuePro, you will not be simply buying a service...you will participate in a journey of learning the art of value investing, disciplining yourself to be different from the herd...and creating tremendous wealth for yourself and your family.
And we must tell you one very important fact...
...at the end of the subscription period, you will own a lifelong treasure...in the form of the reports we send you, the discussions we have, and the portfolio of stocks we recommend to you.
We promise you that we will be candid in our reporting to you through our monthly reports. As Buffett would have promised, our guideline is to tell you the facts that we would want to know if our positions were reversed.
For All Market Conditions
We're totally convinced that this is the single best investment strategy for all market conditions. And our results are there for you to see.
Finally, be aware that you have our special guarantee of satisfaction. ValuePro, unlike other investment recommendation services, will provide you with specific and actionable recommendation on stocks.
You will know exactly what to buy, and at what price. All of the details you will need will be provided to you. And you will also receive our monthly updates.
At An Attractive Price
The price is immaterial at this point. Because you can try ValuePro FREE to see if you like it...for the next 30 days. If you vote thumbs down anytime during this period, we'll return every rupee you paid (minus a 10% refund fee), and you can keep everything you've received up until that point.
If you think this service is not for you, just notify us within 30 days from the start of your subscription and we will simply refund your money...no questions asked!
So what do you say? If you are ready to try the simplest and easiest way to generate tremendous wealth you'll ever find... take us up on this no-risk offer today.
By signing through this offer, you're going to get a wonderful discount on your subscription!
To participate in this two year journey of building the ValuePro portfolio one needs to pay a fee Rs 20,000. But you can get in at a very special price of Rs 13,500 (for an 18 month subscription).
That's right! For only a fraction of the usual price, you can get access to all the recommendations made so far, and the future recommendations we will be making under this scheme till the 1st of November 2011!
Isn't this a steal?!
But wait, there's more...
When you sign on to ValuePro, you will also receive FREE...
1.  Security Analysis - Sixth Edition
Also known as the Bible of value investing, Security Analysis by Benjamin Graham and David Dodd has now completed 75 years since its first publication way back in 1934.
Here is what Warren Buffett has written in the foreword for this edition of this magnum opus -
"There are four books in my overflowing library that I particularly treasure, each of them written more than 50 years ago. All, though, would still be of enormous value to me if I were to read them today for the first time; their wisdom endures though their pages fade. Two of those books are first editions of The Wealth of Nations (1776), by Adam Smith, and The Intelligent Investor (1949), by Benjamin Graham. A third is an original copy of the book you hold in your hands, Graham and Dodd's Security Analysis...Together, the book and the men changed my life."
This book, which includes a CD version of the Second edition of Security Analysis, usually costs Rs 795/-. (Your copy will reach you within 14 days of your signing up for ValuePro)
But if you subscribe to ValuePro through this offer, you can grab the 'Security Analysis' absolutely FREE.
Wait, here's more!
2.  Free video recording of our Investment Summit Event With Ajit Dayal and Bill Bonner
At Equitymaster, we believe in regularly giving our subscribers the opportunity to meet and get their queries answered by some of the sharpest minds in the world of investing.
For instance, in the past one year, we've had webinars wherein Ramesh Damani, Ajit Dayal and Addison Wiggin (the man who predicted the US financial crisis) gave our subscribers insights into investing smartly.
But our high point was when we recently got Ajit Dayal, President & Director, Quantum Asset Management Co., and Bill Bonner, President & Founder, Agora Inc., to share the dais together and present to our subscribers, investment ideas worth their weight in gold and blue chips.
Here are some of the topics that were covered at 'The Equitymaster Investment Summit 2010':
We have a limited edition twin CD pack with the complete proceedings of The Equitymaster Investment Summit 2010.
The pack includes PDF presentations by Ajit and Bill, a video recording of the event and a part recording of the Q&A session.
Ajit's presentation is titled, 400% in 10 years - Why the BSE Index 30 will keep rising.
Bill's presentation is, The Depression 2008...?
The cost of the twin CD pack is Rs 1,450 (the actual value: immeasurable), but if you subscribe to ResearchPro right away, it is yours FREE!
Note: The twin CD pack will be mailed only to addresses in India. So if you happen to be an NRI residing outside India, you could instead have the CDs sent to a friend or relative's address in India and then relayed to you from there.
And there's more...
3.  Equitymaster Portfolio Tracker
During your subscription period, while ValuePro will help you identify Buffett-style stocks, you can also use our Portfolio Tracker for free to manage the portfolio so created.
Portfolio Tracker is an online utility to help you track your stock (and even mutual fund) investments!
It's online, and will be available to you 24 hours a day.
It's always updated with the latest stock prices...and you can also create a number of customised reports to understand your portfolio better.
The Portfolio Tracker usually costs Rs 330/- for a year. But by subscribing to ValuePro, you will get it FREE.
you will receive. . .
So, what are you waiting for?
that will keep on evolving
Even after a quarter of a century, our research process at Equitymaster is evolving as we look at new opportunities on a daily basis. We will endeavour to ensure that the portfolio we advise you through ValuePro remains appropriate for your changing needs and financial aspirations.
We don't mind telling you that our advice is second to none. So we're offering you a clear no questions asked money back (minus a 10% refund fee) guarantee for 30 days from the start of your subscription in case you are not satisfied with what you receive.
We hope we have opened your eyes to this brilliant investment strategy that exists for you. We are looking forward to our future correspondence and to establishing a long-lasting and very profitable relationship.
To your wealth,
Chief Executive Officer
P.S.: We offer the easiest money-back guarantee in the business. Till 30 days from the start of your subscription, take your time and decide if ValuePro is right for you. If not, just ask us any day during this 30 day period and we will send you the refund (minus a 10% refund fee). And while you do so, you can still keep the books, twin CD Pack and the report as a thank-you gift just for trying out ValuePro.
P.P.S.: If you have any queries, please do not hesitate to contact us at +91-22-61434055 or Write in to us.
Delivery for the Equitymaster Investment Summit 2010 CD pack & Security Analysis will be made to an Indian address only.
Equitymaster Agora Research Private Limited
103, Regent Chambers,
Above Status Restaurant,
Nariman Point, Mumbai - 400 021. India.
Telephone: 91-22-6143 4055