Sunday, March 23, 2014

Another Way To Look At Value Investing In This 1 Hour Video

It's a stay-home Sunday, amidst the humid weather, I continue my internet research on investment to boost my knowledge about Value Investing. And the discovery today is an one hour plus Value Investing Seminar video conducted by Mr Eric Kong (from Aggregate Asset Management).

The speaker, Eric is a fund manager and his speech given me another perspective of Value Investing. In fact, his investment approach is kind of contradicts with Warren Buffett's, and with valid explanation. I believed most of the small investors can attest to it.


Following are a few key take away from the video :
1. Two of the key indicators in choosing stocks are PE (Price Earning) and Price To Book Ratios.
2. Price Eearning Ratio is how much you prepared to pay for the earning of the company? Hence, the lower the better.
3. Price To Book Ratio is how much would you pay to get back what the company left if it is liquidated? Hence, the lower the better.

Cheers!     

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