Good day, dear community. Today I will tell you about value investing.
Value Investing is investing, based on economical indexes of the company and her real (fair) value. Real value is a guarantee of stable growing of the company.
This kind of investing is not for speculations. It was created for long term investment. Decision about investing is after quantity and quality analysis.
For quantity analysis use special indexes with own evaluation criteria (price to earnings , cash to debt and other). Quality analysis include fundamental analysis . It is analysis of economics, industry and sector.
Often use comparative analysis with competitors and environment. Important part is analysis and checking financial statements of the company.
The most famous value investors are Peter Lynch, Benjamin Graham, Warren Buffet. All of them had success using own variants of value investing.
Pros:
1. Big profitable;
2. It needs less time on investing;
3. Long term;
4. Less influence of speculations.
Cons:
1. Can be big losses in crisis (more than 50%);
2. Need more resources, than usual trading;
3. Influence of news and fundamental factors;
4. Need better investing preparations.
Wish You profits and good investing,
Financial advisor and analyst – Valerii Selin
Value Investing is investing, based on economical indexes of the company and her real (fair) value. Real value is a guarantee of stable growing of the company.
This kind of investing is not for speculations. It was created for long term investment. Decision about investing is after quantity and quality analysis.
For quantity analysis use special indexes with own evaluation criteria (price to earnings , cash to debt and other). Quality analysis include fundamental analysis . It is analysis of economics, industry and sector.
Often use comparative analysis with competitors and environment. Important part is analysis and checking financial statements of the company.
The most famous value investors are Peter Lynch, Benjamin Graham, Warren Buffet. All of them had success using own variants of value investing.
Pros:
1. Big profitable;
2. It needs less time on investing;
3. Long term;
4. Less influence of speculations.
Cons:
1. Can be big losses in crisis (more than 50%);
2. Need more resources, than usual trading;
3. Influence of news and fundamental factors;
4. Need better investing preparations.
Wish You profits and good investing,
Financial advisor and analyst – Valerii Selin