Saturday, October 15, 2011

Value Based Investment

Objective: Target return of 15% to 25% in a year

There are 9 criteria of Value Based Investment:

1. Historical revenue, profit and cash flow consistently increase
2. Stable competitive advantages
3. Future growth incentive
4. Moderate debt level
5. Above average ROE
6. Low operating expenses level in maintaining daily operation
7. Management holding or buying company's share
8. Share price below the real value
9. Share price in a strengthening stage or uptrend stage