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24-01-2015, 06:45 PM
First post!
Noticed that this post has already in its 3rd year. From sharing about value return expectation to XIRR computation, I always thought time weighted return will be better and easier to understand, however after reading posts after posts and some research somehow feel that XIRR is the better one.
I started my investing journey since last dec, initially thought that STI ETF DCA will be the optimal for average investor due the complexity of investing and potential costly mistakes make by most avg investor and also given the commitment of work and monthly salary which make perfect sense for DCA. and 8% CAGR isn't bad after all. My regular reading led me to the articles of teh hooi ling and shortly after Tweedy Browne of which convinced me to value investing.
So my approach of investing pretty much alighted with their characteristic of value investing, of course not everything but mainly on financial ratio and holding a basket of 20-30 value stocks.
I'm always curious about the return can be made through value investing by avg retail investors. As for myself I didn't really put much thought about how much return can I made[not possible to predict], mainly now just keep focusing on looking for value stocks, and constantly improving my knowledge and skill in stock picking. I guess the thrill of stock picking is also part of the return u get from DIY investment.
The below are the main criteria of my stocks which I created a weight scoring system to rank the stocks, so hope I will not have a bumpy road ahead.
-P/E 4-10,
-Ptb <0.85,
-div yield min 4% over 3yrs,
-Debt no or <0.2,
-ROE
-Mkt cap. >100M
-High cash to mkt cap
-FCF of 2-3yrs
-yearly Insider buying / Share buyback.
Noticed that this post has already in its 3rd year. From sharing about value return expectation to XIRR computation, I always thought time weighted return will be better and easier to understand, however after reading posts after posts and some research somehow feel that XIRR is the better one.
I started my investing journey since last dec, initially thought that STI ETF DCA will be the optimal for average investor due the complexity of investing and potential costly mistakes make by most avg investor and also given the commitment of work and monthly salary which make perfect sense for DCA. and 8% CAGR isn't bad after all. My regular reading led me to the articles of teh hooi ling and shortly after Tweedy Browne of which convinced me to value investing.
So my approach of investing pretty much alighted with their characteristic of value investing, of course not everything but mainly on financial ratio and holding a basket of 20-30 value stocks.
I'm always curious about the return can be made through value investing by avg retail investors. As for myself I didn't really put much thought about how much return can I made[not possible to predict], mainly now just keep focusing on looking for value stocks, and constantly improving my knowledge and skill in stock picking. I guess the thrill of stock picking is also part of the return u get from DIY investment.
The below are the main criteria of my stocks which I created a weight scoring system to rank the stocks, so hope I will not have a bumpy road ahead.
-P/E 4-10,
-Ptb <0.85,
-div yield min 4% over 3yrs,
-Debt no or <0.2,
-ROE
-Mkt cap. >100M
-High cash to mkt cap
-FCF of 2-3yrs
-yearly Insider buying / Share buyback.