🗓️ 15102025 0035
Core Concept: Buy stocks below intrinsic value, hold until market recognizes true worth.
How to Find Value
Metrics: P/E < industry avg, P/B < 1.0, high dividend yield, strong free cash flow, low debt
Qualitative: Competitive moat, good management, understandable business
Process
- Screen by valuation (P/E < 15, P/B < 1.5)
- Read annual reports, analyze business
- Calculate intrinsic value
- Buy at 20-30%+ discount (margin of safety)
- Hold years, track business not price
- Exit when price = fair value or fundamentals break
Trade-offs
Pros: Evidence-based (Buffett, Graham), margin of safety, tax efficient
Cons: Time intensive, requires patience (years), value traps exist, concentration risk
Value traps: ⚠️ Cyclicals at peak, declining industries, high debt + weak cash flow
Singapore
Banks (DBS, OCBC, UOB): stable, high dividends. REITs: below NAV, 5-7% yields
Resources: SGX annual reports, InvestingNote
Best For
Long-term investors (5+ years) who enjoy financial analysis and want to beat market via skill
Not for beginners → start with passive_investing
References
- "The Intelligent Investor" by Benjamin Graham
- passive_investing technical_analysis financial_planning