Deep value investing success with Goldman Sachs former strategist Youssef Kabbaj Deep value investing is a contrarian strategy adopted by the smart investors of value investing. A company specific event or a temporary change in industry dynamics can lead to market dislocations, providing opportunities for deep value investing. Securities can be significantly undervalued, and a short investor can take advantage of the situation as the stress build up progresses to distress stage. Traditional investment strategies typically examine future growth potential of a business wherein investors put their money in the stocks in hope of their improved performance in future. On the other hand, in deep value investing, focus is on identifying the undervalued stocks with a reassuring gap between the value and price. Stock price is an important factor In deep value investing, it’s the price you pay that determines how well you will do. When a business is deeply undervalued, your risk of losing money is lower and your chances of earning higher returns are increased. Some companies trade below their net current asset value or NCAV, so you will be able to make profit even if the business is liquidated. NCAV is a company’s assets less any liabilities. If a company trades below NCAV, the face value of its assets are worth more than the price you have paid, so your chances of profiting in the future become brighter. Deep value investing strategies Deep value investing strategy uses statistics in the form of valuation multiples for comparing two similar companies and scrutinizing them for trading below the net current asset value. Valuation multiples allow for objective comparison of the companies. Different valuation multiples can be used to see how various
companies stack up against one-another. This will help in determining which stock will offer the greater value. Always look for a safety net Always look for a safety net while making deep value investing as a company struggling with debt means it’s unprofitable and simply burning cash to survive. So, having an expert advice you on deep value investing will certainly help in diversifying your risk. Don’t get into the hype that often lures the investors to buy certain stocks. The most important part of the deep value investing is the price. Don’t rely too much on the conventional investment strategies for success as deep value investing has its own independent value factors that experts know how to utilize for best returns. Youssef Kabbaj for deep value strategy consulting Youssef Kabbaj Goldman Sachs former strategist can be approached for deep value investing strategies. He has vast experience in providing consulting services to the investors in alternative finance and deep value investing. Youssef Kabbaj Goldman Sachs former strategist is currently associated with the boutique merchant bank the Whitestones Ventures where he provides consulting services to SMBs and corporate investors about various investment vehicles. Youssef Kabbaj has earned his Master’s in Systems Engineering from the MIT and has earlier worked with Man GLG and Exotix. At Goldman Sachs, Youssef Kabbaj has served as head of strategic coverage for nearly three years. Given his past experience, Youssef Kabbaj Goldman Sachs former strategist is the right person to approach for deep investing consulting. You can get in touch with Youssef Kabbaj Goldman Sachs former strategist at the Whitestone Ventures for more information on your deep value investing strategies.
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