Anyone tried value investing with shares?

[mattinvestor]

So I've noticed that alot of the threads here in the other investments seciton are about forex trading!

Just to add a different dimension to things, and because I've recently read Ben Graham's and Pat Dorsey'sbooks, I was wondering whether any of you have had success (or failure) using value investing strategies with shares?

Any thoughts and experiences would be appreciated?

[OneWayTraffic]

I bought both Microsoft and Linear Technology shares last year based on their brands, P/E yields, Ability to turn money into profits and so on. Both are up, Microsoft (which I bought at an incredible P/E of 10) is up over 25% and still a bargain.

[mattinvestor]

great!~
how were you able to buy US stocks? which broker do you go with... I saw that Comm Bank allowed it, but there were extra fees for Aussies etc to purchase US stocks

[eri]

Some critics argue that while the SAA mean-reversion rule remains sound, unfortunately its 'long-term' might be a little too long for the average human life-span.

http://www.nzherald.co.nz/personal-f...ectid=10822116

[ChrisEdwards]

I haven't tried it yet but many of my friends and relatives are related with shares investment.

[Winston001]

Just to add a different dimension to things, and because I've recently read Ben Graham's and Pat Dorsey'sbooks, I was wondering whether any of you have had success (or failure) using value investing strategies with shares?

Ben Graham wrote the bible on share investing so you are on the right track. Read anything by Warren Buffet too, even his annual reports to Berkshire Hathaway.

If value investing was easy, everyone would make money on the sharemarket. Very very few fund managers beat the average over time.

Buffet suggests winkling out companies with solid earnings and then talking to their staff. The tea lady, the guys on the loading dock, the receptionists. If they are unhappy then stay away. Blue Chip was an example.

Avoid flavour of the month stocks which tend to have a high PE - you are paying for future earnings which might not pan out. Look for boring companies which have some degree of monopoly or such a strong brand they control a market. Coca Cola.

[Rabia]

Me and my friends opened a small company for shares. Although at that time we don't have any experience but we enjoyed it a lot. With minor loss we learnt so much out of it. I think it was good experience. In my point of view we learn from mistakes and experience.

[JABlog]

property vs shares over 40 year period

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10833372

Flawed as its does not take into account of rental income, gearing and tax

[Wayne]

property vs shares over 40 year period

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10833372

Flawed as its does not take into account of rental income, gearing and tax

Flawed is not the word for it - it is utter crap. Talk about coming up with a conclusion and making the 'facts' fit. Also uses the NZSX50 which is the 50 largest companies - failures automatically drop out.

[NovInvestor]

I still prefer property investing.

Leverage = king

and passive cashflow is also king

A litre of milk may cost $1000 in 30 years time, hence what ever you make need to beat inflation (real inflation) by a big margin. Leveraging is an easy way to achieve that, and you can't walk up to a bank and borrow money to buy shares.

[Winston001]

LOL with respect, you guys have your heads in the sand.

If you are correct in saying that property ownership is the best investment, why does anyone rent/buy land and start a business??

[Bob Kane]

If you are correct in saying that property ownership is the best investment, why does anyone rent/buy land and start a business??

I guess the people who start a business believe they can make more money from that business than property ownership?
Not sure what the success rate is of new businesses but landlords love the never-ending supply of optimistic entrepreneurs with winning ideas.

[Wayne]

I don't think Sam Morgan would be where he is now if he only invested in property.

And you can borrow for shares - just not as much and not as easily.

[Bob Kane]

Yes - Sam is 1 in 4 million.
Us average types struggle to turn the bright ideas into reality.

[Winston001]

I guess the people who start a business believe they can make more money from that business than property ownership?
Not sure what the success rate is of new businesses but landlords love the never-ending supply of optimistic entrepreneurs with winning ideas.

We live - and prosper in a capitalist economy. If business over 300 years did not provide a greater return than simple property ownership then nobody would even try to establish a business.

If property ownership alone was the best investment then communist economies, where the state owns all of the land, would have lead to the downfall of capitalism. It didn't happen.