Outperforms when the cycle is near the bottom because earnings cannot go much lower and stocks are likely to be undervalued because of over pessimistic earnings outlook
Value investors make money every year and protects you on the downside
Investors are looking for companies that are trade at less than their real value will be recognized by the other market players and reflected in higher prices.
Investors need to examine company fundamental business prospects. You want a company where something is going to change, either externally (Industry change) or internally (Management)
Sell usually happens when wall street upgrades the recommendation
Prefer cash flow to earnings as measure of the strength of the company’s businesses
Top flight businesses with long term earning power at a low price holds them till they appreciate.
Low price to book value
Straight forward business. They have the staying power and make products people want badly or feel they need. Financial criteria free cash flow, high return on equity and shareholder-friendly management
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
yfchong
+ +, value sharing
2015-05-27 15:33