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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (61583)	12/28/2018 8:56:44 AM
From: E_K_S	Read Replies (4) of 78715

A 10 year holding period is way too long. B Graham in his GN valuation model typically would hold 18-24 months for his fair value target to be achieved. My value stock candidates typically also have company specific problems that have caused sellers to exit the stock and makes the equity undervalued. This will usually result is a very low PE and it's up to management to get earnings back on track. The value investor buys based on this low PE (and their tangible assets) with the expectations that EPS will normalize (reversion to the mean). We have discussed this type of strategy for identifying value stock candidates over the years. The one best advice my Dad gave me was to find companies that have a PE<= 10. Happy New Year to Everybody and looking to some good value stock finds this New Year. EKS

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