Valuing companies not suited for value investing

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(10-12-2010, 09:43 PM)taka666 Wrote: I don't know if this is the right forum to ask but here goes my question. There are many companies with a wide moat (eg. Olam, Sembcorp, SMRT, Capitaland) which might not have good cash flow and consistent revenue, etc that value investors look out for. However, these companies can be very profitable for the long-term.

So, how does one go about valuing such companies that are pegged to Singapore/Asia growth story?


The essence of value investing is buying stocks at less than their "intrinsic value". Value Investors look for stocks that trade for less than their "intrinsic value", or stocks that the market has unfairly undervalued.

There are other investment style usually refer to as Growth Investing. Growth investors looks for companies with above superior growth even if price appears to be expensive

The Value Investing and Growth Investing seem to contrast each other but both methods operate on the premise that the market has mispriced a stock and to make profit when the stock becomes properly valued that is why Warren Buffet stated that "Growth and value investing are joined at the hip"

One popular method for growth investing is CANSLIM by William O'Neil.

Below is the book that i recommend to read.

http://www.amazon.com/How-Make-Money-Sto...0071373616





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RE: Valuing companies not suited for value investing - by SLC81 - 11-12-2010, 11:18 PM

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