Value investing - looking for asset gems
Welcome to Asset Gems – Uncovering Value in Overlooked Companies
Many companies fall out of favor, hitting multi-year lows despite maintaining solid financial foundations. Asset Gems is where I explore these overlooked opportunities—businesses with strong balance sheets but uncertain earnings, often ignored by the market.
I’m not a professional analyst, nor have I worked in investment firms, buy-side or sell-side. My research is self-taught, based on deep dives into annual reports and publicly available data. My approach isn’t full-fledged or institutional grade, but rather a practical, independent take on value investing, shaped by continuous learning and real-world application.
This blog is for those who believe in digging beneath market narratives to find undervalued assets. If you’re someone who sees potential where others see decline and appreciates a straightforward, no-frills approach to valuation, then Asset Gems is for you.
**FEEL FREE TO LOOK AT REPORT SAMPLES IN THE “VALUE BUY REPORT” SECTION**
Contact Us
assetgemsreport@gmail.com
My Investment Approach – A Conservative Deep Value Perspective
At Asset Gems, my valuation approach is rooted in deep value investing, but with a practical, adjusted methodology that suits fallen companies with uncertain earnings. Many of these companies have long streaks of subpar or negative profits, making traditional valuation models like multi-period DCF impractical. Instead, I take a balanced approach between earnings and cash flow, ensuring a conservative and realistic assessment of intrinsic value.
I favor companies with strong balance sheets that can weather tough times. While some fallen companies generate positive cash flow due to high depreciation or accounting adjustments, I don’t blindly rely on cash flow metrics alone. My preference is for businesses with growing current assets and manageable leverage—high operating leverage is acceptable, but excessive financial leverage is a red flag.
Unlike Ben Graham’s strict book value approach, I believe not all assets on the balance sheet are created equal. Some reported values are inflated due to capitalized costs, while others—such as land, buildings, or investment properties—hold real, realizable value. By making necessary adjustments, I focus on companies that have the financial strength to survive downturns and potentially thrive in the future.
THE FINANCIAL INFO IN REPORT MIGHT BE OUTDATED, SOME INFO MIGHT LAGGED THE LASTEST MARKET TREND/CHANGES
How I Structure My Reports
Each analysis follows a seven-part structure:
Historical Performance – Understanding how the company has performed over time.
Current Business Trends – Identifying industry shifts and their impact.
Potential Growth Opportunities – Evaluating how the company can benefit from emerging trends.
Company Characteristics – Examining the company’s unique operational and financial traits.
Financial Analysis – Assessing balance sheets, earnings, and cash flows.
Valuation – Applying a conservative valuation methodology.
Competitor Comparison (if applicable) – Comparing financial metrics with similar companies in the industry.
Disclaimer
This blog is a sharing platform for my independent research and analysis. My work is self-taught and falls within an amateur to intermediate level—I do not claim professional investment expertise, nor do I take responsibility for any investment decisions based on my reports.
If you’re interested in deep value investing with a realistic, asset-focused approach, Asset Gems is here to uncover companies that the market has overlooked—but may still hold significant value.
This intro clearly outlines my investment philosophy, valuation methodology, and report structure while reinforcing my independent, self-taught approach. Let me know if you'd like to tweak any part!