ValuFocus Investing: A Cash-Loving Contrarian Way to Invest in Stocks

Chapter 23

It is Time to Get Started

All the forces seem to be against us. The stock market itself seems unjustifiably powerful. It sometimes even drives the economics of our society. It has misplaced influence on the biggest, most important macro decisions of our economic and political leaders.

We are dealing with decades of practice. Dozens and dozens of books. Overwhelming media coverage. They all say this is the way. Rely on earnings. Invest on the basis of price and market movement. Be safe: Follow the crowd or bet on an index. We can go on.

How can we possibly change minds? Even more challenging, how can we change standard practices? How can we get the thousands of very intelligent, committed believers of their ways, shown to be best in their minds, to consider something else?

The answer: through you; through each of you using our process as your way of investing in stocks.

You become the new force.

We are patient. We know it will take a while. Maybe others will be persuaded enough to follow this lead. Surely, if they do that, they will make further improvements. An army of investors and scholars continuing to make improvements will bring a much better process than we have today. We welcome their participation.

We seek one convert at a time, trying our process and seeing its value.

It is better than standard practices.

Stock prices should be based on the economics of a business—on cash, not accounting methods.

This is the right time to take a long look at another way. The ...