This document summarizes Martin Bodocky's presentation at the Vienna Value Investing Meetup #3. The presentation aimed to create a value investing hub in Vienna by sharing ideas and doing research together. Martin discussed what value investing is, some fundamentals like focusing on a company's intrinsic value and applying a margin of safety. He also provided some tips for becoming a value investor like detaching from daily market noise and discussing ideas only with trusted investors. The next meetups were announced for April and May to continue the discussion.

1. Vienna Value Investing
Meetup #3
PRESENTED BY MARTIN BODOCKY
SUPPORTED BY

2. Why this meetup?
CREATE VALUE INVESTING HUB IN VIENNA
SHARE IDEAS AND EXPERIENCE AMONG MEMBERS
DOING INVESTMENT RESEARCH TOGETHER
THIS IS AN OPEN DISCUSSION MEETUP, PLEASE ASK
WHENEVER YOU LIKE

3. Who am I?
MARTIN BODOCKY
CEO OF MINT IT
WWW.MINTIT.EU
AI AND FINTECH GEEK

4. Disclaimer
WE ARE NOT INVESTMENT ADVISORS.
WE ARE NOT RECOMMENDING TO BUY OR SELL.
ANY DECISION YOU CONCLUDED FROM THIS SESSION
IS YOURS NOT OURS, YOU ARE IN CONTROL.

5. Agenda
1. WHAT IS VALUE INVESTING
2. VALUE INVESTING FUNDAMENTALS
3. MY TIPS FOR BECOME A VALUE INVESTOR
4. WHAT’S NEXT

6. Why should we invest?

7. Investing in general
• INVEST MONEY WHICH YOU CAN AFFORD TO LOSE
• MARKET CAN REMAIN IRRATIONAL LONGER THAN
YOU CAN REMAIN SOLVENT
• PREPARE BUY AND EXIT STRATEGY

8. Stock Market Investing opportunities
Trading
Spread
betting
Value
Investing
Futures
Facts based short term
Facts based long term
Speculation based short term
Speculation based long term

9. Trading
• TRADING IS BASED ON TECHNICAL ANALYSIS AND
MOMENTUM
• TRADING IS AN ACTIVE STYLE OF PARTICIPATING IN THE
FINANCIAL MARKETS THAT SEEKS TO OUTPERFORM
TRADITIONAL BUY-AND-HOLD INVESTING.
• TRADERS LOOK FOR SHORT-TERM PRICE MOVES TO
PROFIT IN BOTH RISING AND FALLING MARKETS.

10. Spread betting
• SPREAD BETTING IS A DERIVATE STRATEGY, WHERE
PARTICIPANTS DO NOT ACTUALLY OWN THE
UNDERLYING ASSET THEY BET ON, SUCH AS A STOCK OR
COMMODITY.
• SPREAD BETTORS SIMPLY SPECULATE ON WHETHER THE
ASSET'S PRICE WILL RISE OR FALL USING THE PRICES
OFFERED TO THEM BY A BROKER.

11. Value Investing
• VALUE INVESTING IS PROCESS OF DISCOVERING
TRUE BUSINESS VALUE VIA FUNDAMENTAL ANALYSIS
• VALUE INVESTING IS BASED ON FACTS
• VALUE INVESTING AIMS TO USE VOLATILITY ON
MARKET

12. Futures
• FUTURES ARE FINANCIAL CONTRACTS OBLIGATING THE
BUYER TO PURCHASE AN ASSET OR THE SELLER TO SELL
AN ASSET, SUCH AS A PHYSICAL COMMODITY OR A
FINANCIAL INSTRUMENT, AT A PREDETERMINED
FUTURE DATE AND PRICE.
• FUTURES CONTRACTS DETAIL THE QUALITY AND
QUANTITY OF THE UNDERLYING ASSET.

13. Value of patience

14. Value investing VS Day Trading
• TRADING IS BASED ON TECHNICAL ANALYSIS AND
MOMENTUM
• TRADING IS NOT BASED ON TRUE VALUE OF
BUSINESS
• TRADING IS SHORT TERM STRATEGY
• VALUE INVESTING IS LONG TERM STRATEGY

16. Value investing fundamentals #1
• COMPANIES HAVE INTRINSIC VALUE
• BEFORE YOU BUY AN INVESTMENT
SECURITY, YOU AIM TO ESTIMATE ITS TRUE
VALUE

17. Margin of safety

18. Value investing fundamentals #2
• ALWAYS APPLY A MARGIN OF SAFETY
• IT IS OUR ALLOWANCE FOR ERROR
• IT MAKES US LESS LIKELY TO LOSE MONEY IF
THE STOCK DOESN'T PERFORM AS WE HOPE.

19. Value investing fundamentals #3
• THE EFFICIENT-MARKET HYPOTHESIS IS WRONG
• IT SAYS THAT STOCK PRICES ALREADY TAKE ALL
INFORMATION ABOUT A COMPANY INTO
ACCOUNT.
• VALUE INVESTORS BELIEVE THAT SOMETIMES
STOCKS ARE UNDER-PRICED OR OVER-PRICED.

20. Contrarian investing

21. Value investing fundamentals #4
• SUCCESSFUL VALUE INVESTORS DON'T FOLLOW
THE HERD
• THEY POSSESS MANY CHARACTERISTICS OF
CONTRARIANS WHEN EVERYONE ELSE IS
BUYING, THEY'RE OFTEN SELLING OR STANDING
BACK. WHEN EVERYONE ELSE IS SELLING,
THEY'RE BUYING OR HOLDING.

23. My way of becoming value investor
• I DON’T HAVE MBA OR CFA , BUT I HAVE A GENUINE
INTEREST IN STOCK MARKET AND BUSINESS
UNDERSTANDING
• MY BEHAVIOURAL TIPS WHICH HELP ME TO BE
MORE CONSISTENT
• EVERY VALUE INVESTOR NEEDS HIS/HER
INVESTMENT CHECKLIST

25. Value Investor tip #1
• I DETACH MYSELF FROM DAILY NOISE AT STOCK
MARKET
• I CHECK STOCK PRICES AS INFREQUENTLY AS
POSSIBLE
• WHEN WE SEE CHANGING A STOCK PRICE, THAT CAN
CREATE FEELING WE NEED TO ACT UPON IT
• HELPS AVOIDING OVER TRADING

26. Value Investor tip #2
• IF SOMEONE TRIES TO SELL ME SOMETHING AND HAS
SELF-INTEREST, I WON’T BUY IT
• I NEED TO BE FIRM, I ALWAYS DO MY OWN
RESEARCH
• IT BUILDS CONFIDENCE IN COMPANY AND MY
SANITY IF PRICE GOES IN OPPOSITE DIRECTION
• HELPS AVOIDING TO BE PUSHED TO BUY OR SELL

27. Value Investor tip #3
• I WANT TO FEEL COMFORTABLE WITH TRUE VALUE OF
BUSINESS BEFORE I START LIKING ITS MANAGEMENT
• IN MOST CASES THE MANAGEMENT ARE SALES
MASTERS AND HIGHLY LIKABLE PEOPLE
• MAKE IT AS LAST CHECK BEFORE INVESTING
• HELPS TO CUT THE NOISE

28. Value Investor tip #4
• I GATHER INVESTMENT RESEARCH IN “RIGHT” ORDER
• CHECK MOST RESPECTABLE INFORMATION FIRST
• ANNUAL REPORTS, 10K/10Q REPORTS, YOUR
FINANCIAL MODELS, PRESS RELEASE
• CHECK WALL STREET RECOMMENDATION LAST
• HELPS BUILDING MY UNDERSTANDING OF BUSINESS

29. Value Investor tip #5
• I DISCUSS YOUR INVESTMENT IDEAS ONLY WITH
PEOPLE WHO HAVE NO AXE TO GRIND
• MANY PEOPLE, MANY OPINIONS NOT ALL ARE
EQUAL
• CREATE A GROUP OF TRUSTED INVESTORS
• HELPS AVOIDING TO BE INFLUENCED

30. Value Investor tip #6
• I RARELY BUY OR SELL WHEN THE MARKET IS OPEN
• DECIDE YOUR ACTION WHEN MARKET IS CLOSED
• I SET PRICE LIMIT AND LEAVE THE BROKERAGE
ACCOUNT
• I KEEP DISTANCE FROM DAILY PRICE NOISE
• AVOID BEING ABSORBED

31. Value Investor tip #7
• IF A STOCK TUMBLES AFTER I BOUGHT IT, I DON’T
SELL IT FOR “TWO YEARS”
• THIS HAS REFLECTION AND LEARNING PURPOSE
• WHEN I BUY INTO COMPANY I WANT TO BE MAKE
SURE TO KEEP IT AT LEAST FOR TWO YEARS, EVEN IT
LOST 50% OF PRICE SUDDENLY AFTER PURCHASE
• HELPS TO AVOIDING QUICK BUY FROM EXCITEMENT

32. Value Investor tip - Bonus
• I DON’T TALK ABOUT YOUR CURRENT INVESTMENT
• I WILL NEVER KNOW WHO WILL USE MY WORD IN
DIFFERENT TIME AND PLACE
• HELPS AVOIDING A CONFLICT OF INTEREST

33. Value Investor tips
• THEY ARE NOT RULES NOR GUIDELINES, THEY ARE MY
LEARNT LESSONS
• I WILL PROBABLY BREAK AND CHANGE SOME OF
THEM IN FUTURE
• TO HAVE THEM IS HELPING ME TO BE FOCUSED AND
SORT OF CONSISTENT
• EVERY VALUE INVESTOR SHOULD HAVE SOME OF
HIS/HER OWN

35. Investment Checklist part #1
• CIRCLE OF COMPETENCE – INDUSTRY, SECTOR
EXPERIENCE
• RISK AVERSION – VOLATILITY OF SECURITY

36. Investment Checklist part #2
• DIVERSIFICATION – BETA, INDUSTRY, SIZE
• GOAL APPROACH(TIME LIMITED INVESTMENTS)

37. Any questions?

38. Next sessions
• THIRD WEEK IN APRIL – RESEARCH GROUP
• FIRST WEEK IN MAY – BEGINNERS GROUP
• ANY IDEA ? - PLEASE PARTICIPATE