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Hi,
The 5 Rules Of Deep Value Investing cover:
- What to buy
- When to sell
- Portfolio construction
Deep value stocks are riskier than typical stocks by nature.
These aren't high quality businesses. And they are cheap for a reason.
But at the same time, a deep value strategy can produce incredible returns when approached intelligently.
The single best tool for risk mitigation for deep value stocks is portfolio construction.
Limit Risk By Increasing Holdings
It's obvious, but underappreciated – with any stock, you can only lose up to the amount you invest.
Since deep value stocks have the interesting characteristics of:
- Higher risk for each individual security
- Strong returns as a group
They require smaller position sizes. Said another way, your deep value portfolio should have more holdings than a portfolio of high quality dividend growth stocks.
We recommend no more than 3% of your portfolio in any one deep value stock. And 3% is aggressive.
I personally currently invest ~1% of my portfolio in each deep value stock I thoroughly vet and recommend. My portfolio also includes many high quality dividend growth stocks. If I were investing 100% in deep value stocks, I'd likely hold 3% in each.
Limit Risk By Building Over Time
There are currently far from 30+ deep value stocks that meet our criteria.
This means building your portfolio over time, rather than all at once.
More opportunities will come available when we enter a period of market decline.
This naturally tilts your deep value portfolio towards buying more when market prices fall.
Limit Risk By Not Averaging Down
Buying on dips (also known as dollar cost averaging) is a good strategy when employed on broad market ETFs, or even on high quality businesses likely to be around for decades ahead.
But it only increases risk with deep value stocks.
Dollar cost averaging makes the assumption that a given security will recover.
That isn't a given with deep value stocks. It's better to control risk through diversification and limiting capital.
Dollar cost averaging on deep value stocks can lead to "throwing good money after bad".
It is something I've done personally. This is an investing lesson learned through experience.
And it's one of our rules in our 5 Rules Of Deep Value Investing – which power the Deep Value Report.
You can put the 5 Rules Of Deep Value Investing to work for you with the Deep Value Report.
The Deep Value Report is our flagship service at Deep Value Wealth.
It has everything you need to start adding deep value stocks to your portfolio, including:
- One-off buy recommendations matching our buy rules in the 5 Rules Of Deep Value Investing.
- Actionable sell recommendations on past recommendations as needed matching our sell rules in the 5 Rules Of Deep Value Investing.
Each buy recommendation is thoroughly vetted and researched. This is not a quick screen or automated AI guesswork.
Note: We are focused on the U.S. market, not international stocks.
The stocks we recommend are often unprofitable businesses. But they tend to have catalysts that we believe are likely to unlock shareholder value.
And interestingly, unprofitable (and non-dividend paying) net current asset value stocks have generated better returns than those that are profitable.
Source: Deep Value by Tobias Carlisle, page 133. The above studies count net current asset value stocks as those trading for 2/3 or less of net current asset value.
You will instantly receive our 1st buy report when you join, and all future buy reports as long as you are a member.
- All reports are delivered by email from Ben@deepvaluewealth.com.
- We expect to deliver several more buy reports in the coming 1-2 weeks.
- The exact timing of buy reports going forward will fluctuate because our criteria are time-sensitive and highly selective.
We are targeting rare opportunities, which by definition aren't constantly available in large supply.
With that said, I expect at least a few new buy recommendations every month, with many more during times of market turmoil (when stock price declines make more opportunities available).
Launch Special Pricing Opportunity
We are offering deeply discounted pricing on the Deep Value Report to celebrate its launch!
Key points are below:
- The Deep Value Report Will Never Be This Inexpensive Again
Normal price: $999/year
Your savings are: $700/year
Deep discount price: $299year
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It will stay at just $299/year.
- 7-Day Free Trial & 60-Day Full Refund Period
There's absolutely no risk to join because you get a 7-day free trial and a 60-day 100% refund period on your initial payment. If The Deep Value Report isn't right for you, just email me at Ben@deepvaluewealth.com to opt-out.
- Limited Time No Exceptions Launch Offer
This is a no exceptions offer. Once it’s gone, it’s gone forever. It ends at 8:00 PM CT on August 31st, 2026, in just:
There's absolutely no risk to join thanks to our 7-day free trial. But there is serious wealth creation potential from investing with The Deep Value Report.
Notes: Enter coupon code LAUNCH if it doesn't auto apply.
Please email me at Ben@deepvaluewealth.com with any questions. I look forward to hearing from you!
To your compounding wealth,
Ben Reynolds
Founder, Sure Dividend & Deep Value Wealth
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