Summary of Value Investing
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Summary of Value Investing
Choosing value stocks over, for example, growth stocks, generally requires more research of companies and less research of current stock market trends. It means purchasing stocks that many other investors are currently ignoring, and buying stocks that have yet to accelerate upward and prove themselves in the market. This approach requires careful research, timing, and discipline.
Want to find the P/B and P/E ratios of potential companies to invest in? They will be included in those companies’ annual reports and financial statements. They are also available in the investor-relations sections of those companies’ Websites.
Practical Ideas I Can Start with Today
- To obtain the annual report of a company in which you do not own shares, call the public relations (or shareholder relations) department of the company or consult its Website.
- Use the The EDGAR database to find annual reports of companies you are interested in.
- Find annual reports on The American Association of Individual Investors Website.
- To read the P/B or P/E ratio of a company you already invest in, find it in the annual report that gets sent to you each year or, if you invest online, find it in the company profile.
What you have learned
- What Is Value Stock?
- What Is Value Investing Strategy?
- What to Look For in Value Investing
- Use Price/Book Ratios to Find Value Investments
