A Newbie Guide to Investing

[weijian]

Hi all investors,

I'm a newbie to value investment and have just completed the value investing course.Because I have no knowledge in business nor accounts, I still don't really understand how to valuation a company. For instance, the PE ratio. I was told to look for low PE ratio but sometimes high PE ratio is good. Different company uses different valuation approach and how should I suppose to know? I read some company case studies and looked for information about the company but I couldn't find those informations given on the case studies? Hope I could learn and pick up more understanding on value investment from this forum. Thanks all 

hi Dreamhigh,
Welcome to ValueBuddies (and value investing). Investing is a lot like sex, no amount of theory will replace practice (and practice makes perfect). 
As such, I do encourage you to start with small amounts. Buy into a blue chip and with your vested interest, you will be "forced" to study hard on everything about the company. That may help u to pick up the concepts in practice along the way. Eventually, maybe the return of investment will be low, but the return of brain damage, wouldn't.

Here's a book that really helped me in my early years. For your reference:
http://www.barnesandnoble.com/w/warren-b...1100831875