The StockTwits® Edge: 40 Actionable Trade Set-Ups from Real Market Pros

CHAPTER 6

Margin of Safety

Todd Sullivan, @toddsullivan

Todd is a friend so I am a little biased, but I trust him. He actually manages a bit of my money. Value investing is very different from all other investing styles you will read about in this book. It is a different discipline. I am more comfortable investing in start-up Web deals, which are even more illiquid but have a value that is picked out of thin air. There are so many ways to invest capital, but value sounds the simplest. It is not. Todd finds value with a hidden catalyst that most would never notice. He digs deep and he's smart. Todd's blog is a great place to watch his game plan unfold daily and to learn from a true professional.

Buy fear and sell greed.

—Warren Buffett

INVESTING BIO

I have owned various businesses my entire life. I was 18 when I started a pool installation company to pay my way through college. As a business owner you gain a unique perspective into operation and business cycles. These experiences led me to value investing and the thought process that buying a stock was not simply buying a piece of paper to trade away; it was buying a real stake in a business. The decision process behind buying a stock of a publicly traded company is no different than buying a local business. I have successfully used the same approach in my investing for the past 15 years.

In January 2007 I started a blog to share my thoughts on investing and the current state of the economy. Having developed a following, in ...