Imation Journey of Wealth

What is Value Investing?

imationtrader
Publish date: Wed, 27 May 2015, 03:31 PM
Hi, I'm passionate in stock investment and would like to enjoy the life towards financial freedom. Sharing is caring :)
  • 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

 

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yfchong

+ +, value sharing

2015-05-27 15:33

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