What is a realistic return on value investing?

[paullow]

Hi all,

Thanks for your input. Just to clarify I'm not into trading as my current job is very taxing and I really don't have time to keep monitoring the market and executing orders.

As for my strategy, to put it shortly is to analyze the financial statements and calculate some ratios that estimate the health of the company and also looking at profit trends and NAV / earnings ratio. I tried to run a discounted cash flow calculation like what they teach in the books, but the whole thing is very confusing and seems to require making all sorts of assumptions, so it's not very useful for me.

Is 15% very high? I mean it doesn't sound impossible to me. A few of my colleagues told me they already made more than that in just this year till now. They might be exaggerating, but so far they sound quite down to earth and not the flashy hao lian type, so I am inclined to give them the benefit of doubt.

If 15% is too high, what is the realistic return an average value investor can expect?

It is important to understand financial parameters and valuation methods used in investment. It is equally important to re-use the biz sense acquired from your formal occupation. (you are marketing manager, right?). I always suggest to start simpler, by using PE, and adjust it base on your biz sense.

Hi guys, just to share with u. I use market cap, nav, dividend yield as my key parameters n use these over a span if 5-10yrs. Consistent and constant growth is what i look out for. I use dividends to compound more shares for snowballing effect. If sti crashes, it'd not be a bad thing since 1) i can use my own money to buy more or 2) i can switch frpm defensive to growth stocks.
Last but not least, timing is impt. So far i managed to achieve ard 15%pa. If sti, i might

The answer is already highlighted by other buddies, i believe 10% long term is a norm.