Out of the several hundred stocks listed in SGX, how do you choose which one to buy? Use value investing to find the undervalued stocks? Find stocks with huge growth potential? Find income stocks that would give high and stable dividends for many years to come? Or...?
Everyone has their own school of thought (e.g. Value investing, Growth investing, Income investing, etc) for choosing what stock to buy. And of course, different schools of thought would use different metrics to find that best stock.
Value investors would use ratios such as low price-to-earnings (P/E) and price-to-book (P/B) to find undervalued stocks; growth investors would try to find stocks that are growing faster than the market using metrics such as P/E-to-Growth (PEG) and Return on Capital, while income ......