Dear Readers,
This is my second post on my Blog. Hope you liked the first one.
Wat are the rules of Value Investing & what is the meaning of Value Investing
Value Investing is a concept introduced by Benjamin Graham of buying stocks in which one find value in buying. In other words, the stock is cheap as compared to its intrinsic value.
Value Investing Strategy cant reap you benefit in short term, but is quite useful if you want to invest for longer term of more than 3 years
Rules of Value Investing are
This is my second post on my Blog. Hope you liked the first one.
Wat are the rules of Value Investing & what is the meaning of Value Investing
Value Investing is a concept introduced by Benjamin Graham of buying stocks in which one find value in buying. In other words, the stock is cheap as compared to its intrinsic value.
Value Investing Strategy cant reap you benefit in short term, but is quite useful if you want to invest for longer term of more than 3 years
Rules of Value Investing are
- Low Price to earning Ratio vis-a-vis is sector
- Price Earnings Growth Ratio (PEG Ratio) should be less than 1
- Debt-Equity ratio must be less than or equal to 1
- Earnings Per share should be in rising trend along with the sales
- A important barometer for any company Return on Equity should be high
- Price-Book Ratio must be less than 1
- Less Leverage company
As on 19 Feb, 2011, the stocks which fell under that category or near to that category are
- Mahindra Satyam, a value buy at these levels for value invstors
- Bharti Airtel, a telecom major
- Shree Renuka Sugars, a sweet sugar stock
Kindly get back to me for any queries
Regards
Mayank Gupta
CRISIL Experience
+919967052367
Wealthbazaar.in
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