Posted by Flintstones > 2017-01-23 23:19 | Report Abuse

Boring

Posted by moneySIFU > 2017-01-23 23:34 | Report Abuse

Finding great business with great future and sound management, invest with strategy and let it does its job, your money will grow over time.

As usual, good sharing & writing from Ricky. Keep it up!

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Once you found it, all you need is a lot of patience and let it does its job. And it is much easier to differentiate a great business from poor ones compares to telling whether a stock is under or overvalued.

Posted by probability > 2017-01-23 23:45 | Report Abuse

Paying a low Price-P for a currently visibly attractive Earnings is better or ...a higher Price for a low Earnings which requires deeper than surface analysis on the hidden future Earnings growth potential?

actually the question is meaningless....as its all about how sure you are on the future Earnings and paying the price according to your intelligence (confidence) level.

So then...lets not talk about P/E....just talk about how to predict Earnings growth.

Posted by soojinhou > 2017-01-24 00:09 | Report Abuse

True true, what you say is true. It's OK to buy great business even if it's trading at a high PE. For me, I see that as higher risk because I have to assume that the company can continue to grow at the past growth rate. But if I buy a company with low PE, I only need to assume it can sustain its current result. Since I can't see the future, the former does carry higher risks than the latter, in my opinion.

Posted by L2invest > 2017-01-24 08:15 | Report Abuse

Nice sharing... I learn!

Posted by YiStock > 2017-01-24 09:35 | Report Abuse

I would say, find a style that suits you. It is more like a decision of- "you want to prove yourself right Or you want to make money".

Posted by L2invest > 2017-01-24 14:43 | Report Abuse

Right, this will be one of the techniques & of course making $$$ is absolutely the best evidence of proving oneself right... right kah?

Posted by daisaku > 2017-07-12 01:02 | Report Abuse

"Over the long term, it's hard for a stock to earn a much better return than the business which underlies it earns. If the business earns 6% on capital over 40 years and you hold it for that 40 years, you're not going to make much different than a 6% return – even if you originally buy it at a huge discount. Conversely, if a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you'll end up with a fine result."

From Charlie Munger