Best value stocks
If you have ever paid a high price for a share, it is time to turn your back on speculating and start investing. Stop hoping for a spectacular short-term return and start being certain of a great long-term one. Read Roger’s 5-step plan that will teach you how to make value-investing work for you.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
seb
:
Hi roger,
great article have enjoyed reading your blogs over the last few months.
When calculating the value of companies do you discount the forecast EPS to arrive at the intrinsic value ie, do you test your valuation at 12months, 2yrs and 3 yrs ?
Do you think 12.5% would be a reasonable expectancy for return on investment in the sharemarket in your experience?
Look forward to your book
kind regards,
admin
:
Hi Seb,
In short yes, but you may be surprised to hear that there are a numbers of ways to skin a cat and achieve the result. The twelve and a half percent depends on which approach toa rrive at the discount rate you believe has the most credibility. There’s no ‘right’ answer of course.