Motley Fool Inside Value is The Motley Fool's quintessential value investing newsletter, helmed by advisor Rich Greifner and supported by a team of top-notch Motley Fool analysts. Rich and his team scour the news and SEC filings looking for companies they believe the market has undervalued – companies they then recommend to Inside Value's valued (pun intended) members.
Inside Value's investing philosophy
Value investors, generally speaking, fall into two schools: "Deep value" and the Munger/Buffett style. Benjamin Graham is one of the most famous practitioners of deep value, or cigar-butt investing – which is when an investor purchases a business (often a very distressed business or one in a weakening industry – like newspapers) for less than its intrinsic value and then sells when the stock trades nearer to fair value. The Munger/Buffett style of value investing promotes paying fair prices for great businesses on the theory that those businesses will continue to deliver year after year, delivering additional gains to their owners.
The Inside Value team makes stock recommendations that fit both schools but tends to skew toward the Munger/Buffett school of thought. That's in part because The Motley Fool is a proponent of a long-term buy-and-hold mindset, whereas deep value tends to be shorter-term. Rich and team aim to find companies with a trifecta of attractive attributes: A great management team, a strong financial position, and an enduring moat. Talented management allocates capital intelligently and can therefore help a business endure (or grow) where others might fail. Inside Value also seeks companies with fortress-like balance sheets and multiple streams of revenue to reduce downside risk. A moated business, of course, has an advantage over its competition and should therefore be positioned for long-term gains.
To all of this the team adds one more criterion: A margin of safety. The Inside Value team performs an analysis of what they think each stock they recommend is worth, and then advises investors on an appropriate buy-around price. After all, whether it's clothes, TVs, or stocks, nobody likes overpaying – and the Inside Value team is committed to helping members find appropriate (or even cheap!) prices for the stocks they buy.
We think that's a real value-add. (We can't stop making value puns.)
What an Inside Value subscription gets you
Rich and his team provide members with at least one new value stock pick each month, which the team delivers to your email inbox. They also do regular updates on every stock Inside Value recommends to keep members in the loop on the latest company news and whether it impacts the underlying investing thesis. The team also provides a weekly update (often with some educational commentary) on what's going on in the Inside Value stock universe.
Lastly, don't undervalue the active Inside Value investor community. The message boards are filled with thoughtful investors looking to teach – and learn from – each other. Whether you've been investing for 20 years or today is your first day, there's a ton to learn from this amazing community of lifelong Fools.
We see that as pretty valuable. (Seriously, we can't stop.)
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