Hi, I'm new to investing

Hi guys,

Not sure if this is the right place to post. I'm currently 20 and new to investing.

Just wondering what method do you guys use to find the intrinsic value of a company?

Also, how do you find a list of stocks that are undervalued and worth investing in? Is it the P/E ratio good enough?

Thanks and looking forward to learn!

Welcome to the value investing world, SpikeOut! Kudos to starting at such a young age!

You can read more about value investing from books. I would recommend "The Neatest Little Guide to Stock Market Investing" for a start.

P/E ratio in itself cannot tell u much about a company. U need to look at the financial statements and know how to get information from there. For that, I would recommend "Warren Buffett and the Interpretation of Financial Statements: The Search for the Company with a Durable Competitive Advantage". U can screen stocks using P/E ratio but u still need to delve into the companies thoroughly to find undervalued companies and value them using a valuation method. Personally, I use discounted cash flow method to find intrinsic value.

Hi Taka,

Thanks for your reply! I own a copy of The Intelligent Investor and it's quite handful for me haha.

I read your blog too and it's very insightful!

I currently have about 15k to invest in. Is the amount too little to consider investing in equities and should i put it in a unit trust instead?

Thanks!

I don't think that amount is very little personally but I know others might think 15k is too little. I first started off with an even lesser amount than you have.

Don't ever put your money in a unit trust (http://financiallyfreenow.wordpress.com/...-are-crap/ ). You can invest it yourself and diversify like like a unit trust by buying ETFs. If you are bullish on Singapore, you can buy the STI ETF. There are other ETFs trading in SGX and the American markets (be wary of the depreciating USD).

(11-12-2010, 03:13 PM)SpikeOut Wrote: Hi guys,

Not sure if this is the right place to post. I'm currently 20 and new to investing.

Just wondering what method do you guys use to find the intrinsic value of a company?

Also, how do you find a list of stocks that are undervalued and worth investing in? Is it the P/E ratio good enough?

Thanks and looking forward to learn!

Time is your best friend now, good start !!

Enjoy your learning days..........best time ever =)

Dont bother buying anything now though, it's too expensive..........

Thanks guys for the welcome!

Got a question, I'm currently using POEMS, how long will it take for EPS to credit the money to my POEMS account? I'm under 21 and need to have sufficient credit in my POEMS account before I can make any share order.

(16-12-2010, 02:13 PM)SpikeOut Wrote: Thanks guys for the welcome!

Got a question, I'm currently using POEMS, how long will it take for EPS to credit the money to my POEMS account? I'm under 21 and need to have sufficient credit in my POEMS account before I can make any share order.

If you do EPS before 9.00, you'll see your money in POEMS the day after tomorrow.

Just to clarify, cyborg means 9.00 pm and not 9.00 am.