What is a realistic return on value investing?

[Some-one]

Hi all,

Thanks for your input. Just to clarify I'm not into trading as my current job is very taxing and I really don't have time to keep monitoring the market and executing orders.

As for my strategy, to put it shortly is to analyze the financial statements and calculate some ratios that estimate the health of the company and also looking at profit trends and NAV / earnings ratio. I tried to run a discounted cash flow calculation like what they teach in the books, but the whole thing is very confusing and seems to require making all sorts of assumptions, so it's not very useful for me.

Is 15% very high? I mean it doesn't sound impossible to me. A few of my colleagues told me they already made more than that in just this year till now. They might be exaggerating, but so far they sound quite down to earth and not the flashy hao lian type, so I am inclined to give them the benefit of doubt.

If 15% is too high, what is the realistic return an average value investor can expect?

I guess a lot of value buddies have given useful insights. Remember that the few colleagues that you are referring to make 15% just this year alone. How about next year, subsequent years? Just last month alone, my portfolio is up 20% but this month, it goes down to just 5%. Even if you are a trader, it is highly impossible that you can time the market and buy and sell at the exact peak and trough.

Value investing is talking about long term investing that could be from 10 years to 20 years. It is never about short term buying and selling. Value investing is about finding the intrinsic value of a stock and buying it with a margin of safety. The intrinsic value of a stock has to be calculated using Discount Cash Flow Model, Dividend Discount Model, Relative P/E. Again, intrinsic value would keep on changing. There is no one way to value a stock correctly.