AuthorZeb Pilcher |
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Week 65/15/2021 ![]() This week I read The Art of Invest Lessons from History's Greatest Teachers by; John Longo. The first chapter was about the legendary investor Benjamin Graham who founded the Idea of Value investing. Value investing is a long term version of investing that is relatively lower risk. The 7 Criteria he set for value stocks are 1. Adequate size of 6 million or more in sales 2. current assets are twice the size as current liability 3. Earn stability 4. If the stocks pays dividends which is a small amount of money they give investor for owning stocks 5. growth 6. P/E ratio of at least 10 or greater 7. Book value is 1.5, Book value is assets divided by liabilities I also learned that my idea of investing at first was flawed. I thought penny stocks were a lot better and I was more likely to make money off of those rather than larger stabler companies. It takes a lot more know how and time to make solid investment in lower priced stocks. Value investing however is a lot more realistic to do and be successful at. This type of investing isn't a get rich quick rather a slow gradual creep up a mountain. Value stocks should also be almost always bought in a dip. The dip shouldn't be a long dip such as a 52 week low but rather a small drop from week to week. This adds a little more cushion.
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