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

Chapter 21

What If You Don't Want to Employ ValuFocus

What if you just don't want to employ ValuFocus?

You just don't wish to spend the money. (The subscription cost from your broker or LCRT is quite reasonable, providing value for the money.)

Or you're an engineer…or an academic…or a student, and you just want to know what's in the black box, so you can trust it.

You like to perform your own research and analysis.

This chapter provides a free way to download Excel teaching software from LCRT. Then, you can copy data from Yahoo Finance or some other source to enter into the spreadsheet to see how the calculations are made, or to add your own.

This chapter provides a way to fit these needs of detailed analysis.

Since I am a “nerd,” we call this intrinsic value stock selection for nerds.

In this LCRT Excel sheet, we provide some of the standard valuation models that we have tested extensively so you can see the results and the detailed audit trails that produce them.

Of course, we do need to earn a living. So, we have not included in this software our most advanced models and the parameters' estimation process necessary to assure that 50 percent of the universe is undervalued and 50 percent is overvalued. Please forgive us.

We give you six steps on what you need to do.

1. Download the Excel software from the LCRT web site: http://www.ValuFocus.com.

2. Pick a source of data—say, Yahoo Finance.

3. Download the data:

• Fundamental data—income statement, balance sheet, sources and ...