IFB93: Investing in a Low Interest Rate Environment with Vitaliy Katsenelson

Dave:                                    00:00:36               All right folks, well welcome to Investing for Beginners podcast. Tonight we have a very, very special guest with us. One of my favorite writer, thinkers and investors. His name is Vitaly Katsenelson and he is the CEO of the IMA firm based out of Colorado and he has a fantastic blog. It is one of my favorites that really, really has helped me learn and grow so incredibly much. It’s called the Contrarian Edge. If you do not already subscribed to it, you need to, it’s fantastic. So without any further ado, I’m going to go ahead and get us started that you don’t want to hear me talk. We want to hear Vitaly talk. So Andrew, why don’t you go ahead and ask the first question and we can go ahead and chat a little bit.



Andrew:                              00:01:15               Yeah, thanks Vitaliy, for joining us. And, I’m also a big fan. I’m currently, it was actually good timing because I’m in the middle of reading your Sideways Markets book. Just so happened to be reading that when I reached out to see if you want to do an interview. We’re obviously a show that’s very focused on beginners and we like to talk about value investing and trying to buy stocks– buying low, selling high. So when you think, how do you think about value investing because that’s one of the things that you like to talk about. You’re a value investor, you’d like to think about investing. So do you approach the actual topic of value of investing differently? Do you see it as like a numbers game? Do you see it as maybe a mixture of both? How would you go about approaching the idea on the topic of value investing?



Vitaliy:                                  00:02:09               Well, first of all, Dave and Andrew, thank you very much for having me. I’m looking forward to this. All right. I think value investing is usually misunderstood. And let me explain why. Ben Graham wrote the Bible of value investing The Intelligent Investor and when most people read this book, they get would they get out of this? They get this recipe and the recipe is basically this: buy cheap stocks. And I think they get the wrong message out of this though. The recipe is part of the book. The bigger message of the book is really, it’s a value investment philosophy. It’s something I go through in my six commandments. But basically value investing is a philosophy where you say, and let me just go through a few of those six commandments. Stocks are not piece of paper their businesses.