Value investing

Value investing - by Tan Teng Boo on 24.8.2013 1. When chances of winning is 50%, chances of winning in the long term is 0. 2. 2. Stock market is not for gambling, learn how to invest. 3. Perfect market hypothesis - ordinary people underperform the average. 4. Theory of value investing - buy below value, one day people will realise it is under value. 30% discount according to Ben Graham. 100% success in theory but more than 99% in practice. 5. Return in investment a) real estate - 4% annually b) Unit trust - 60% below subscription price over 10 year. only 10% double up c) gold n metal - 40 years for gold to double up d) shares - RM1000 in PBB held at listing is worth RM2.45 million now. 6. Value investing by Ben Graham a) Thorough analysis b) Safety of principal c) Adequate return 7. Rule of 72 - no of years to double up. If return is 10%, it takes 7.2 years.