How to select a stock using the value approach

Tips in How to select stocks using the value approach

1. Determine intrinsic value
2. Compare with market value
3. If market value is lower than the intrinsic value, then buy the stock.
4. If the situation is the opposite, then don’t do anything and reconsider
Other asset classes like bonds and real estate.
5. Constantly monitor the business environment and watch for significant impacts
On the businesses that you invested in.

In determining the intrinsic value
1. Analyze the financial statements first.
2. Determine potential threats and opportunities in the future that will have an impact on the company’s future earnings.
3. Use information from all sources and all aspects like current economic trends to determine the intrinsic value in combination with the financial statement.