“It’s the king of economic statistics. Gross domestic product is an important tool to measure the health and strength of a country’s economy, but it doesn’t always give a full picture. So how does GDP work? CNBC’s Elizabeth Schulze explains.”
Tag: CNBC
A Beginner’s Guide to Value Investing by CNBC.
Here’s a quick guide from CNBC on Value Investing. This investing strategy’s timeframe is long term (years), of course.
The main takeaways are in “Ways to spot a value stock” where valuation ratios like P/E & Price/Book ratios are applied to quickly evaluate a company’s value. Although Dividend Yield is mentioned, it should be noted that it isn’t as straightforward to interpret because of its inverse relationship with the share price.
You will of course want to avoid the Value Trap.
Watch Warren Buffet’s Best Investing Tips video at the end of the article to get further insights.
His tips in summary are:
- Buying stocks isn’t for everyone
- Diversify, diversify, diversify
- Stocks generally outperform bonds in the current market
- Don’t try to time the market
- Be patient and think long term
Bursa Ninja 