Would you be amazed if I told you that it is possible to make 36% in annual returns by just buying the market indexes?

Value Investing is the strategy employed by the world's greatest investor and also the second richest man in the world, Warren Buffett.

We know that in the short-term, stock markets go through booms and busts, upturns and downturns. So, there are a few signs you can look out for in order to avoid buying into the market when stock prices are generally high.

Look at the historical performance of the US stock market over the last 50 years. As we all know, stock markets are measured by indexes.

The next most important question people ask is when they should sell the stock to take their profits. When you need the money? When the price has gone up by 20%? 50%? 100%?

Value investor Warren Buffett, uses specific strategies to make sizable returns in individual stocks.

Over the last 49 years, Warren Buffett managed to achieve a 24.7% annual compounding rate of return, which means he doubled his money every 2.9 years for half a century!

I have found that people who have made money consistently through their investments are able to do so because they treat it with same seriousness as they would in building a business or a second career.

The big question I am often asked is, "how do I find stocks that will keep falling in value". Well, it is actually much more difficult to identify stocks that will continue to fall in price as compared to finding stocks that will appreciate in value. This is why I recommend bearish plays only to more experienced investors who have mastered the art of buying bullish stocks first.

So far, you have learnt how to make money when a stock appreciates in value. Basically, it is to buy when stocks/calls are at a low price and sell when stocks/calls move to a high price.