With the value stock chart found in the V chart
The reissue of the value investing guide that opens new investment paths!

"Value investing," which involves long-term investments in undervalued, high-quality companies based on their intrinsic value, has long been in the spotlight.
However, from the perspective of individual investors, it is not easy to approach value investing due to the difficulty in understanding financial statements and assessing corporate value.
This book is a value investing guide that explains value stocks through charts to help individual investors more easily identify them.
Through the "V-Chart," which charts corporate value in various forms, we will identify which companies are suitable for value investing and what the trends in corporate value are, and provide methods for applying these to actual investments.
By following the V-Chart's usage and case studies, you will naturally come to understand the principles of corporate activity, the definition of corporate value, the conditions for a good company, and the meaning of financial statements.

This book covers how to apply the V-Chart's various indices to actual investment decisions, identifying which companies are performing well and which are deteriorating.
--- p.6

By identifying companies that aren't being recognized for their value in inefficient markets and carefully analyzing their value, there are clear opportunities to profit through value investing.

--- p.23

The V-chart shows the trends exhibited by a company as a living, moving organism.
It is up to investors to turn this trend into a basis for investment decisions.
Of course, if there is a process to trace the causes of identified trends, the reliability of the information will increase.
--- p.39

You need to read the trends of points and lines that appear within this structure and understand which shapes serve as the basis for which investment decisions.
Just because it's called a V-chart doesn't mean it uses a completely new indicator.
Since it uses indicators that are already available, such as sales, net profit, and debt ratio, you can think of it in relation to these.
--- p.47

The characteristic of the circular floor type is that the floor is completed slowly and gently, but after completion, the increase is considerably large.
This can be understood as the condensation of improvements in the company's own constitution, which are ultimately expressed as net profit.
--- p.78

One of the misconceptions investors have is viewing growth too simplistically.
Many investors believe that growth can only come from great hit products, new businesses, and the development of new markets.
As a result, technology stocks that have just entered the market, launched a product, and shown explosive growth for one or two years are sometimes confused with growth stocks.
--- p.122

The profit margin index displays operating profit margin, operating profit margin, and net profit margin on a single chart, allowing you to analyze the quality of profits by sector.
The left Y-axis of the chart displays the profit margin in percentage units.
--- p.130

If a company is making a profit through normal business activities, its market capitalization should be higher than its net assets.
Benjamin Graham also defined a market capitalization lower than net assets as irrational.
However, in reality, many companies are trading below their asset value despite being in the black because the market is inefficient.
--- p.144

The debt to watch out for is borrowings.
Accounts payable and severance pay do not affect the income statement, but borrowings do affect net income in the form of interest expense.
--- p.170

The current ratio is the value of current assets divided by current liabilities.
Current liabilities refer to debts that must be repaid within one year.
Therefore, when combined with the meaning of current assets, the current ratio is the ability to immediately repay debt within one year.
It talks about the degree of power.
--- p.218

This is a very important concept.
Value investing is about finding the gap between intrinsic value and market price, and it provides an answer to why calculating intrinsic value is possible on an absolute basis.
That is, the company is a unit of currency.
Being able to evaluate values ​​makes value investing possible.
--- p.240

In general, as profits increase and assets grow accordingly, more opportunities arise for businesses.
First, the company's stability is secured, allowing for stable management and increased profits through greater assets.
The problem, however, is that the results can be completely different depending on how the assets are structured.
--- p.268

The shipbuilding industry, which requires massive investment in facilities, could suffer a major blow if its virtuous cycle of operations is disrupted.
Due to the nature of shipbuilding, there is a long period from ordering to collection of payment, and if fixed assets are excessive, there is a disadvantage in that it is difficult to respond in a timely manner when pressure to repay arises.
--- p.288

There are more than one or two investment targets.
Recently, it has become possible to invest in not only gold and minerals, but also stocks from other countries.
Lim Sang-ok, a merchant from the Joseon Dynasty, emphasized the importance of investing in people by saying, “Business is not about making money, but about leaving people behind.”
The investment targets are diverse.
--- p.302

Trading volume has nothing to do with corporate value.
Rather, low volume should be interpreted as a signal that the stock is closer to being a value stock.
Low trading volume means that there are no buyers, but also no sellers.
--- p.328

Value investing isn't necessarily the most profitable investment strategy.
But what I can say for sure is that this is the way to become the ultimate winner in the stock market and the most correct way to invest.

--- p.378