Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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Friday, 17 July 2009
Has the share price discounted all the negatives?
In a downturn, or a crash, the price of a stock may go down by a large amount. After the price has stabilised, the question to ask oneself, would be: "Has this share price discounted all the negatives?" Re-value this stock again using its latest fundamentals. It may be a rewarding exercise.
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