原帖由 shutterbug 於 2009/1/30 00:07 發表 
how do you determine the value of a stock? mind to share your way?
I don't study individual stocks. I take a top down approach.
As regard to how to determine if an industry is under-valued, I look to see if there are close substitutes and whether it's a need or a luxury. That's why I pay close attention to water transportation, oil/natural gas and commodities. They are irreplaceable. They are indeed driven by supply and demand, but supply is surely limited while demand fluctuates. The only key question is whether the companies in question can survive the storm, not whether the industries will pick up again. So to tackle this problem, I buy a basket of 5 to 10 different stocks in every industry that I am interested in. That's why you need a low cost broker. |