Pete Renzulli of Stock Trading Pro and I partnered to introduce a new service combining our expertise. Pete specializes in maximizing profits based on timing as well as order flow. He’s been in the business and successful for over 35 years. I think he’s an excellent complement to our best-in-class fundamental analysis.
Here's the agenda from the Value Profit Blueprint event:
Value Profit Blueprint
- Value investing concepts
- Value investing examples
- Macro principles and business cycle
- Order flow stacking principles
- Risk management
- Position management
Introductions
David Trainer, CEO of New Constructs
- Former Wall Street analyst
- Founded independent research firm to analyze financial filings
Pete Renzulli, CEO of Stock Trading Pro
- 36 years experience as investor and entrepreneur
- Specializes in order flow analysis
Value Investing Strategy
- Invest in Superior Capital Allocation
- Manage Risk in Pursuit of Gains
- Fund Managers Maintain Positions as Long as Story Remains Valid
If story changes, allocation should decrease
- Retail Investors Need Structured, Repeatable Process
- To identify plays
- And recognize when thesis changes
Macro Principles
- Business Cycle
- Sector Rotation
- Order Flow Stacking
- Tracks institutional supply and demand
Risk Management
- Keep You In the Game Long Enough to Understand Value
- Prioritize Managing Downside
- Different From Money Management
1. Money management – Amount of capital allocated
2. Risk management – How capital allocated based on idea quality
Position Management
- Build Positions in Planned Manner
- Follow system to determine if idea remains valid
- Add Shares Based on Volatility Metrics
- Sell Based on Changes in Story Validity
- Fundamentals, technicals
- New decision needs to be made
- Great Investors Do Not Pick Price Target for Exits
Value Investing Examples
- Analyze Financial Filings to Determine:
- Economic vs Accounting Earnings
- Growth Appreciation Period
- Return on Invested Capital
- Compare Valuations of Stocks like:
- JPMorgan (undervalued)
- Nvidia (overvalued based on expectations)
This article was originally published on February 22, 2024.
Disclosure: David Trainer, Kyle Guske II, Italo Mendonca, and Hakan Salt receive no compensation to write about any specific stock, style, or theme.
Questions on this report or others? Join our Society of Intelligent Investors and connect with us directly.