Approach: Discover great company with substantially under value
Criteria for great company:
1. ROE>15%, EPS growth>15% in last 3-5 years
2. Sound balance sheet
3. Future analysis:
can be performance be sustained in the feature 3, 5 and 10 years?
- can the growth rate, ROE be sustained
4. Under value
Market value < 2/3 NCAV, the little the better.
TO DO JOBS
1. Suppose I am at year 2003, if i applied this approach, what are the performance of those stocks that i will buy?
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