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Relative Valuation Part 3 – Price/Book Ratio

Relative Valuation Part 3 – Price/Book Ratio

This column is written by @gordon_ong.
-Gordon has a demonstrable interest in equity investments, financial markets, and negotiating deals. As @NTUInvestmentClub president, he has an understanding of what factors drive an organisation’s success.

Another way of comparison is the P/B ratio. P/B is a way to compare the price you pay compared to the value of the company’s assets. P/B is best used for asset-heavy companies and capital intensive companies, such as manufacturing, finance and construction.

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29 Warren Buffett Quotes on Investing & Success

29 Warren Buffett Quotes on Investing & Success

The following is a repost of one of our community members, Arsenal’s article, posted here: button_continue-reading-1Warren Buffett, chairman of Berkshire Hathaway Inc., left, speaks to David Rubenstein, co-founder and managing director of the Carlyle Group, during the Economic Club of Washington dinner event in Washington, D.C., U.S., on Tuesday, June 5, 2012. Buffett said he doesn't expect another U.S. recession unless Europe's crisis spreads. Photographer: Andrew Harrer/Bloomberg via Getty ImagesWarren Buffett is obviously incredibly successful. He’s built his wealth long-term to over 66 billion dollars, making him one of the richest men in America. Warren lives by his certain set of values that he uses to invest and make other life decisions. He has some great advice that we can use to be successful.

Take a look at 29 intelligent and inspiring quotes on investing and success from Warren Buffett, world famous bluewhale investor (blue-whale) and one of the top billionaires in the world.

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Relative Valuation Part 2 – P/E

Relative Valuation Part 2 – P/E

If anyone talks about the fundamentals of a stock to you, I am sure they will first talk about the P/E ratio. So, what is the P/E ratio?

Earnings per share is calculated by taking the total earnings divided by the total outstanding shares. P is always the same. However, the E number may be different.

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Relative Valuation Part 1-Introduction

Relative Valuation Part 1-Introduction

This column is written by @gordon_ong

-Gordon has a demonstrable interest in equity investments, financial markets, and negotiating deals. As @NTUInvestmentClub president, he has an understanding of what factors drive an organisation’s success.

What is Relative Valuation? Relative Valuation is a quick way to compare assets to the price of similar assets in the market. Multiples are just standardised estimates for the value of the company. Just like you compare data plans between Telecoms, relative valuation compares the company price to what you are getting in return (e.g. revenue, earnings, dividends, cash flow, book value, etc). To compare between data plans, you may come up with a multiple called Price (per month)/Data to see which data plan is the most value-for-money.

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TA Series 10: Momentum

TA Series 10: Momentum

Welcome back everyone to the 9th post of TA series. Finally, it is time to talk about a more advanced momentum and trend indicators. Regardless of the type of investor you are, I believe that this post is going to help you to make better decision on when to enter or exit a position, and therefore maximizes your return. Since previously I have talked about trend and idea behind them, in this post I will go through momentum and its indicator in a greater detail and I will end by discussing how to combine both indicator to come up with the most informed trade decision. So, let’s begin.

Momentum


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TA Series 8: Moving Averages and Weighted

TA Series 8: Moving Averages and Weighted

This column is written by @devinnath.
Devin is a technical analyst who balances FA and TA in his investment decisions. He believes in using news and FA to spot the right stocks and rely on TA to give him the lowest risk-to-reward ratio possible.


Welcome back everyone to the 8th post of Technical Analysis Series. In previous posts, I have talked about various candlesticks patterns, resistance, support and many other fundamentals of TA (pun unintended) that you need to know. Along the way I have frequently used many mathematical terms such as “Moving Averages” and “Weighted”. Basic understanding of these terms is very crucial in determining your success in using TA in your investment decisions. For those of you who find mathematics to be a thing of the past, then this post is just for you. I will summarize all you need to know about these jargons without going down into the technical too much but more into how to understand their application on our charts.

Moving Averages

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FA 101: 5 Frequently Overlooked Things

FA 101: 5 Frequently Overlooked Things

This column is written by @gordon_ong.

-Gordon has a demonstrable interest in equity investments, financial markets, and negotiating deals. As @NTUInvestmentClub president, he has an understanding of what factors drive an organisation’s success.

When we talk about the fundamentals of the company, we frequently focus on the qualitative aspects (macro situation and industry outlook) and the quantitative aspects (financial statements, ratios and valuation). Caught up in the financial data, we sometimes forget that companies are still run by management teams, who have varying degrees of competency and have their own personal interests in mind. Here is a checklist to ensure that management is working their hardest to deliver value to you, the shareholder.

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TA Series 7: Volume Explained

TA Series 7: Volume Explained

Welcome back everyone to the 7th post of the series, Volume. Due to popular demand, let me clarify all you need to know about volume and its impact on Technical Analysis in this post, before I move on to chart patterns as well as trading strategy in the following post. Volume is an important factor of Technical Analysis which often overlooked by many analysts.

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TA Series 6: Identifying Trends

TA Series 6: Identifying Trends

Welcome back everyone! After the previous post about support and resistance, I believe that it will only be appropriate to talk about trend lines. Over the series I have used the phrase trend reversal, trend continuation or up/down-trend. Some of you may have understood entirely, or at least partially about trend lines. For the benefit of everyone, especially those who are very new to investing, I will break down everything you need to know about trend lines in this post, so keep on reading.


What is a trend?

In day to day basis, we use the word “trend” to describe the general direction of something that keeps changing e.g. fashion, food or holiday destination. Despite the seemingly random fluctuations, there is always a general direction that can be deciphered from a greater perspective.

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