Book Preface: Invest in Current Wealth and Present Value

Welcome to the latest serialization segment of my next book, Quality Value Investing: How to Pick the Winning Stocks of Enduring Enterprises. I am writing the book on LinkedIn as part of the QVI Newsletter and look forward to subscribers’ support and feedback as we produce the manuscript in real-time.

A Preface is the introductory brief content section of the book’s front matter, typical of nonfiction works. It introduces the author and explains their background and the book’s mission.

The purpose of a Preface is to establish the author’s credibility regarding the subject matter and provide additional relevant information on the book’s development. Essentially, it is an introductory book passage by the author to orient new and returning readers.

Preface: Invest in Current Wealth and Present Value

I appreciate your commitment to read my fifth book, Quality Value Investing: How to Pick the Winning Stocks of Enduring Enterprises. The investment of your precious time is cherished.

I’m David J. Waldron, author of the international-selling book Build Wealth with Common Stocks. Established initially as my subscription newsletter, I am excited to introduce new readers to?Quality Value Investing (QVI).

To uncover fundamental investment value, QVI uses a proprietary analysis to inspire readers to build and maintain portfolios of the shares of quality companies purchased at reasonable prices to fund their life’s essential milestones.

For some background, in early 2009, following the Great Recession-induced bear market, I transitioned to bottom-up quality-driven value investing after struggling as a top-down growth investor for several years. Frustrated, I began modeling the guiding principles of legendary investors Warren Buffett, Benjamin Graham, Peter Lynch, Howard Marks, and Charlie Munger. I made alpha-achieving stock picks driven by their influential collective wisdom, which became the foundation of Quality Value Investing.

As a result of my investor reinvention over 15 years ago, our concentrated family portfolio of predominantly dividend-paying common shares of quality enterprises has achieved alpha by outperforming the S&P 500 Index based on an equal-weighted average total return per holding during the same periods since inception. Thus, I was fortunate to discover first-hand how quality-driven value investing prevails across market cycles.

New reader? Subscribe to Quality Value Investing on LinkedIn. It’s free.

Quality Value Investing’s Checklist-Driven Approach

My proprietary checklist-driven approach to stock-picking generates an actionable investment thesis summarizing why I rate a targeted company and its stock as a buy, hold, or sell.

My easy-to-read and understandable research reports in the QVI Newsletter examine the targeted company’s current wealth, including the value proposition or competitive advantage, the business fundamentals or returns on management, and the enterprise’s downside risks. Next, I uncover the stock price’s present value?by analyzing shareholder yields or owners’ earnings, valuation multiples or intrinsic value, and the share price’s downside risks.

As such, I gravitated to just the facts for a more profitable approach to retail investing by putting quality before speculation. The current wealth and present value stock-picking strategy rejects near-sighted trading schemes, unreliable predictive analysis, and business modeling overkill typical of the financial services industry’s penchant for generating advisory fees more than portfolio alpha.

Everyday retail investors often build portfolios to finance their life’s essential milestones, such as buying a home, paying college tuition, sponsoring a wedding, underwriting a hobby, starting a business, or enjoying a comfortable retirement. Thus, I assist readers in discovering how to keep investing super simple by focusing on the more tangible current wealth and present value paradigm instead of speculative future stock prices or growth targets. Then, we practice and master the behavioral arts of rational thought, discipline, and patience to take advantage of the magic of compounding, protected by wide margins of safety, to fund those milestones.

I discovered that do-it-yourself everyday stock investors can beat the market or their investment goals over time by sticking to a simple menu of time-tested, winning investment principles, strategies, and practices.

The more profitable approach to retail investing is putting quality before speculation. For example, rational investors reject near-sighted trading schemes supporting controversial, unproven investment vehicles with limited utility for hopeful, although improbable, quick financial gains.

In addition, disciplined and patient investors learn to stop placing bets on faceless stocks and instead invest in the common shares of legacy businesses. This original concept of trading equities facilitated willing participants to take affordable partial stakes in publicly traded companies. That approach remains the ideal model for retail investors seeking to build an alpha-achieving portfolio of the winning stocks of enduring enterprises.

Although Quality Value Investing welcomes every investor to participate and benefit, the book best serves the following pre-retirement retail-level investors:

Everyday investors keen on the quality-driven value investing model of buying and holding the common shares of excellent businesses when their shares are trading at reasonable prices. The investor seeks to open or maintain an existing personal brokerage or tax-deferred account and needs inspiration to self-manage their portfolio. In addition, they seek an easy-to-read, value-added, and timeless book in their quest for lesser risk and lower cost investing across market cycles.

To create an enduring investment reference, I use instructive narratives more than real-time examples of investment opportunities in the book, as the real-time information would inevitably become obsolete. However, the newsletter version of Quality Value Investing publishes new and updated research reports on the winning stocks of enduring enterprises by applying the actionable principles and strategies discussed throughout the book.

In the book’s back matter, Appendix I, The Elements of Quality Value Investing, provides readers with a built-in objective book review for ongoing reference. Appendix II, Glossary of Investing Terms and Metric Targets, summarizes the data-driven content for reader reference. Appendix III, Quality Value Investing at davidjwaldron.substsck.com, provides additional information on my subscription newsletter that inspired this book.

Some readers may notice a repetitious theme in the book. As a former postsecondary education executive, I can attest that mastering a subject or skill requires thousands of hours of repetitive learning and hands-on practice. Quality-driven value investing is no exception to that rule.

I humbly appreciate your interest in reading Quality Value Investing: Uncovering the Winning Stocks of Enduring Enterprises. Please read the important disclosures and disclaimers before you begin your quality-driven value-investing journey.

Disclosure: As of this book’s writing, I/we held beneficial long positions in all the common shares of all the companies held in our family portfolio as mirrored by the QVI Real-Time Concentrated Stock Picks. I wrote this book myself, and it expresses my own opinions. Other than the book’s funding campaign, publishing royalties, and premium newsletter subscriptions, I am not otherwise compensated for it. I have no business relationship with any publicly traded company mentioned in this book.

Additional Disclosure: David J. Waldron’s Quality Value Investing book content, newsletter posts, research reports, and real-time stock picks are for informational purposes only. The accuracy of the data cannot be guaranteed. Narrative and analytics are impersonal, i.e., not tailored to individual needs nor intended for portfolio construction beyond his family portfolio, which is presented solely for educational purposes. David is an individual investor and author, not an investment adviser. Readers should always engage in independent research or due diligence and consider, as appropriate, consulting a fee-only certified financial planner, licensed discount broker/dealer, flat fee registered investment adviser, certified public accountant, or specialized attorney before making any investment, income tax, or estate planning decisions.

Disclaimer: Although Quality Value Investing takes a skeptical view of the financial services industry commonly referred to in the media as Wall Street—a euphemism for professional or institutional investing anywhere in the world—it neither implies nor expresses specific issues with or negative references to any actual organizations or individuals existing or working in the financial services industry. Any perceived connection or offense to actual firms or natural persons is coincidental and unintentional. In its general lament of the Wall Street way, David abstains from unproven conspiracy theories and presents a narrative platform of commentary, critique, education, and parody. In this world, facts are exempt from any alternative paradigm. Thus, the subjective thoughts shared by the author throughout the book are his opinions and, therefore, independent from fact.

Copyright 2024 by David J. Waldron. All rights reserved worldwide.

Thank you for reading?this edition of the Quality Value Investing newsletter, a reader-supported publication. Please consider subscribing to receive new posts and support my work. It’s free on LinkedIn.

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About the Author

David J. Waldron is the founder and contributing editor of Quality Value Investing and author of the international-selling book Build Wealth with Common Stocks. David’s mission is to inspire the achievement of his readers’ financial goals and dreams. He previously enjoyed a 25-year career as a postsecondary education administrator. David received a Bachelor of Science in business studies as a Garden State Scholar at Stockton University and completed?The Practice of Management Program?at Brown University.

QVI on Substack subscribers (free and premium) can download my international-selling book, Build Wealth with Common Stocks, for free.

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