Tuesday, 7 October 2014

Value Investing in Practice

Value Investing in Practice
Long-term - Fundamental (look at underlying business)
(1) Lookintelligentlyforvalueopportunities(LowP/E,M/B)
o Mr. Market is not crazy about everything
o This is the first step not to be confused with Value Investing
(2) Knowwhatyouknow
  •   Not all value is measurable
  •   Not all value is measurable by YOU (Circle of Competence)
    (3) Youdon'thavetoswing PATIENCE
Value Investing: the Approach
(Look Systemically for under valuation) page10image10656Value Review page10image10792Manage Risk
  •   Value implies concentration not diversification. (Look for a Margin of Safety)
  •   At worst Buy the Market) There are three parts to being effective: