Value Investing

@hpklow (110)
Singapore
July 22, 2008 1:10am CST
Anyone knows what is value investing? How do you do it?
1 response
• United States
22 Jul 08
Value investing is where you buy lower priced or new company stocks, taking the gamble that they will show an increase at some point. These are usually long term stocks. The classic terms being buy low, sell high to make a profit. You can do this through any trading company like etrade. Never go with a full service investment company. They take crazy fees just to not make you much money. Their interest is in the fees they get from the companies they sell you. Do your research and find stocks that are consistent and preferably ones that pay good dividends. You can get a rundown of a company's financial outlook and stock information by calling or writing their investment department.
@hpklow (110)
• Singapore
22 Jul 08
Hey there, Thanks for your comments. If you were saying and doing research on company stocks, how many types of companies are there in the entire stock market? Which stock market are you referring? Are you doing value investing too? If so, is it in stocks, shares or property?
@sdas86 (6076)
• Malaysia
22 Jul 08
Hi, This is a nice response, great information for me and I really learn something new. I am in stock market for 6 months. I learn a lot about fundamental investing from books and I apply them carefully for my investments. I am also looking at dividends. Dividend is a great income source for stock investment because it can help to cover losses.
• United States
22 Jul 08
Well, there are thousands of stocks. Maybe even millions. After all, there are several thousand in the US alone. This is not counting world trade. I am not familiar with the world trading though. I cannot give you much more than this at this point. I know what the value investing is, but I don't know the particulars. I too have just started reading a book about investing and this topic was covered right away. One thing you want to remember when investing is that you want your portfolio to be diversified. Which means you want them to have many different kinds of investments. Not just stocks. Property is a great way to invest. Houses are ok, but there are no guarantees that you will get renters or for how long. The costs of a house rental plus utilities is too much in todays economy. Many are looking for apartments. So I would get apartment buildings or commercial buildings with apartments above. Preferably ones with businesses already going and tenants too. That way you can start making a profit right away. The rent on these of course will cover costs. I think you have to cover the existing leases, but not sure about that. Carefully consider this though and make sure you look the property over carefully. Run down or dilapidated properties will get you sued because most have asbestos or black molds. Very toxic. Then you also want to invest in long term options. CD's, mutual funds and even bonds are all good. Bonds are not as popular as they once were which is a shame. Back in the day you could buy some $25 bonds and 20-30 years later they would be worth millions upon millions. These days, I am not so sure. More likely a few thousand if you are lucky.