Jeff Yastine’s Risks of Investing in Value Traps

     According to Jeff Yastine, there are only two types of stocks that one can ever invest in, those that have value and those that are not more than value traps. Yastine goes ahead to provide an illustrative explanation by exploring the differences. For instance, the great debacle of Fairholme can be a good example of what Jeff Yastine is trying to insinuate when talking about risks in investing in any stock without a close evaluation and market analysis.

Great Failure of Fairholme

Bruce Berkowitz, the founder of Fairholme, had assets that had a monetary value of $20 billion. He tried to control the assets in 2011, but today, the fund is barely worth $2 billion. This implies that the investment was done without bothering to consider whether the stock had value as they were valued traps. That said, his bet on Sears Holdings provides an explicit example of how paying attention to the value of the stock can lead an investor over the edge.

Sears Facing Investment Hiccups

Jeff Yastine also reports that the Berkowitz told investors that recently, Sears was worth $90 per unit of share. But that has drastically changed overtime. Within a very short duration, the value of shares has shifted toward the negative, and there is no sign of any improvement shortly. At the moment, according to Berkowitz, Sears is now operating on losses and continues to do so.

Who is Jeff Yastine?

Jeff Yastine, who is also known as JL, has been serving in as the Editorial Director since 2015. The company that he works for is known as Banyan Hill Publishing which is located in Delray Beach, Florida. Yastine is the chief editor of the Total Wealth Insider and hence helping the local and veteran investors in understanding the market and how to gain profits from it. Yastine has a great understanding of how investors should go about understanding how they should allocate resources so that they can maximize their gains at the end of each financial period.

Jeff Yastine has done a great job helping aspiring investors learn the ropes involved in investing in various stocks. It is important, the information he shares that way, investors can mitigate the risks involved in investing in various stocks and the market at large. Companies that have been operating on losses can borrow Yastine’s great skills and advice so that they can get to correct the investment mistakes that they had made earlier.

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