Smart Tips

A lot of attention has been paid to different methods of stock selection. Lately momentum investing has been all the rage, and many have been suggesting that the old methods are no longer valid. But, as we have indicated all along, in the long run, the old rules will apply and those who ignore them may look great for their 15 minutes of fame, but in the end, they ignore the old rules at their peril. …

…in which you would like to increase your holdings, and add to the ones that are well priced at the time. When it comes to pricing, there are two main approaches. One uses empirical methods that use market prices to calculate ratios. The ratios are then used to determine the reasonableness of the share's price. The other calculates the intrinsic value, by determining the present value of the future cash flows generated by the share.