Greedy's Vault - Volume 4

LevWedge Studios Presents

VOL.4

FRIDAY NOVEMBER 3, 2023

WHAT'S INSIDE: All about Value Mr. Market - this week’s updates

Puppets | Perspective | Finance

Hello, Dedicated Mutants!

Dive with us into the treasure trove of Greedy's Vault as we unravel the timeless concept of **Value**.

In an investment landscape filled with noise, knowing where true value lies can be your compass.

Value: Not Just A Price Tag At its essence, value investing is about uncovering stocks trading beneath their true worth. Think of it as finding diamonds in the rough.

The Toolbox of Value While the PE ratio might be the popular kid in class, genuine value is discerned through a medley of metrics: - **Book Value**: The leftover after a company settles its debts by liquidating assets.

- **Dividend Yield**: Is the stock rewarding you with a reasonable income?

- **Debt-to-Equity**: Is the firm heavily dependent on borrowed funds?

Mr. Market & His Temperament Value investing operates on the premise that Mr. Market is, well, a bit moody. Sometimes he's overly optimistic; other times, too pessimistic. For the discerning value investor, these are moments to capitalize on.

Safety First: The Margin of Safety

Introduced to the world by the brilliant Benjamin Graham, this principle is all about snapping up stocks at prices significantly lower than their intrinsic value. Consider it your safety net during market turbulence.

Beware the Value Traps Caution! A seemingly attractive stock might be cheap for a reason. Distinguishing a genuinely undervalued gem from a mere shiny object is paramount.

Patience: Value Investing's Best Friend Navigating the value investing waters requires patience and the resilience to hold onto choices, even amidst temporary market storms.

Value Beyond the Charts Value investing's principles stretch beyond the realm of stocks. Whether you're in the market for a new home, evaluating a business proposal, or making day-to-day choices, recognizing intrinsic value is key.

Value isn't merely about numbers; it's an approach to life and investments. In a world often swayed by shortlived trends, staying true to value can be your beacon.

Stay tuned for our upcoming Greedy's Tickers segment. The market's next undervalued star might just be around the corner!

Seek, discover, and always find the value.

Unearthing True Worth with Every Investment

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www.greedyshow.com

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FRIDAY, NOVEMBER 3, 2023

Not the Only Game, but the Steadiest In the bustling casino of investing, while value might not be the flashiest player, it certainly packs the strongest hand over the long run. However, that doesn't imply you won't have a few bad hands now and then. Because let’s be real, the stock market isn't just charts and numbers; it's a maze of algorithms, dark pools, and the high-rolling tables where the elites play.

These shadowy recesses of the market, ruled by the algorithms and secretive trades, are domains the Ivy League groomed and the high society frequent. The average investor? Well, we're just supposed to nod, smile, and accept our lot, aren't we? Think again!

While it's true that we can't beat them at their own mysterious games, we can follow their footprints. We might not always know their next move, but we can surely predict where they're headed. And that, dear mutants, is our secret weapon.

Ah, but don’t cash in your chips just yet! Dive deeper with us next week as we demystify **Technical Analysis: Separating Myth from Mastery**. Because in this game, understanding the shadows might just be our ticket to the jackpot.

viewing value In a whirlwind market In the roller-coaster realm of stock markets, discerning value is like finding a diamond in the rough. It's not always visible, but it's always valuable. Markets may plummet, providing a feast of value, but only if you possess the nerves of steel to dive in and grab them.

This erratic nature of markets? Thank algos for that. These buying and selling computer programs run the show, making the stocks dance to their whimsical tunes. It's like a puppet show with stocks as marionettes, and algos holding the strings.

But here's the rub: not all markets will bow down to the principles of value. In some arenas, if a stock isn't climbing, it's invisible. And that's where the real essence of value comes in - finding those indispensable businesses that society can't function without. Couple that with robust profits, and voila, you've found your diamond.

You might think, "Surely, a high-performing, indispensable business wouldn't be available at a bargain?" Ah, but every so often, the market has its tantrums, indiscriminately discarding everything, good and bad. And that's when the treasure hunt begins for us at Greedy's.

Though the majority of stocks I come across don't pass the Greedy Test, every piece of research, every analysis, adds a piece to the greater puzzle. For instance, my early investment journey with Snap eventually paved the way for a colossal bet on Meta. Knowledge from rivals can lead to joining giants.

To wrap up, many revel in the glory of their favorite celebrities or sports teams. How about we change the game and become our own champions? Treat your financial journey as you would a major league franchise.

After all, the real victory is making money even in your dreams. And trust me, with Greedy on your side, there's no room for snoozing.

www.greedyshow.com FRIDAY, NOVEMBER 3, 2023

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This week, we're unwrapping the enigma of the Price-to-Earnings (PE) ratio. Fasten your seatbelts; we're about to embark on a financial roller-coaster!

PE Ratio: The Heartbeat of the Stock World What is the PE ratio? In its simplest form, it’s how much investors are willing to pay for each dollar of a company's earnings. Think of it as the price tag for future growth expectations. But there's more beneath the surface...

High PE vs. Low PE: The Eternal Debate **High PE**: Often means the market is optimistic about the company's future. These stocks are considered "expensive," but they might be priced for perfection. **Low PE**: Indicates either a potential bargain or a company that's underperforming. Dive deeper before declaring it a deal.

Remember, a PE ratio, like age, is just a number; it’s the story behind it that counts!

The Industry Context: Apples to Apples Comparing a tech stock's PE to a utility firm's is like weighing a feather against a brick. Different industries have different standards. Always compare within the same sector for meaningful insights.

Navigating Negative Terrains: Zero or Negative PE These stocks have either zero or negative earnings. It’s essential to understand why. Is it a temporary blip or a sinking ship? Research is paramount.

PEG Ratio: Filling the Gap Meet the PE ratio's evolved cousin - the PEG ratio. By factoring in the growth rate, PEG offers a fuller picture, especially for those growth-oriented companies. If PE is the appetizer, then PEG is the main course.

EPS: The Building Block Every PE ratio rests on the Earnings Per Share (EPS). This metric divides a company's profit by its number of shares, revealing how much profit each share can claim. It’s the foundation of our PE exploration.

PE Pitfalls: The Cautionary Tale As with any tool, misuse can lead to mishaps. Never make an investment decision based solely on the PE ratio. It's essential, but it's just one piece of the bigger puzzle. **Closing Thoughts:** The PE ratio, though a popular metric, is surrounded by myths and misconceptions. By understanding its nuances, you arm yourself with a powerful tool in your investing arsenal. Remember, Mutants, knowledge isn't just power; it's profit.

www.greedyshow.com

VOL.4

FRIDAY, NOVEMBER 3, 2023

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**Greedy Show: Mr. Market's Sizzling Week Recap** This week on the Greedy Show, we watched Mr. Market turn up the heat! The Dow Jones sizzled with a 5% leap, the S&P 500 scorched up 5.85%, and the Nasdaq was on fire, climbing 6.61%—making it the hottest week for stocks in 2023.

The VIX indicator showed volatility cooling off dramatically, dropping from 21 to a frosty 14.

Bullish stocks leaped to 563 while bears retreated to 352 from a daunting 1300, signaling a roaring comeback for the bulls.

With the Fed hinting at a rate hike hiatus, whispers of a mid-2024 rate cut swirl amidst double-target inflation. As election year 2024 approaches, it casts a long shadow over future financial policies.

Job numbers came in lower than expected, suggesting the economy might be simmering down just right, but the question remains: how much cooling can we handle? Bond yields are stabilizing, and the technicals seem to agree that this easing trend might hold steady.

A 50% drop in the VIX reflects a massive calm after last week's storm, hinting at smoother sailing ahead for investors. Stay glued to the Greedy Show for a deep dive into these numbers and what they mean for your greenbacks! **Greedy Vault Update: Navigating the Technical Maze** In this edition of the Greedy Vault, we confront the challenging technical landscape of the market. Despite the exhilarating climb we've witnessed, we're staring down a tough barrier with the PPO still languishing below zero—a sign of potential resistance ahead.

Breaking through will require undeniable market strength, something we're currently missing. It's a stark reminder that the most stellar market days often emerge from the Greedy’s Take on the statement darkest times. While some might label me a perma bull, I rely on real-time chart analysis to guide my views.

My take? There's still untapped potential in the market. I’m fully vested in Meta, betting on the vitality I still perceive amidst the uncertainty. Keep a close eye on those technicals— they'll tell us if we can expect to ride this momentum or brace for a stall.