1. Investing is a PROCESS, a Journey and it is NOT a destination.
2. NEVER add/average UP a company with ROE lower than 15% (low ROE)!
3. Do NOT let GREED taking over our calculation based on data.
Buying a Company:
The 1st thesis of investment:
(1) Value Growth? - good balance sheet, good business model, good management, ROE > 15%
(2) Deep Value? - good balance sheet, good management, stability of business/revenue, ROE < 10%.
(3) Asset Value? - good balance sheet with undervalued price to asset value.
(4) Dividend? - good balance sheet, good business model, good management, ROE is very low .
When the share price has been up tremendously, i should periodically check back with my 1st thesis in purchasing this company:
(1) Am i buying for value growth? deep value? asset value? (this is not my criteria) or dividend?
(2) When i invest for value growth, i should hold longer term.
(3) When investing for deep value ......