For readers who who are not subscribed to my YouTube channel or who simply prefer reading blogs to watching videos, this is the transcript of another recent video I produced.

People often ask me whether a stock is trading at a good price to buy? I have been careful to side-step such questions not only because I am not allowed to give such advice, but it is also because what is a fair price is subjective. Each time I stuck my neck out in the past, I almost lost my head. Lesson learnt. Anyway, the answer really depends on what we use to determine fair value. This is also why different research houses will ascribe different fair values to the same stock. With banks, we often see price to book value and PE ratio being used in determining fair value. These are good ratios to use but, of course, they do not tell the full story. They do not...