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97ITR · 03-19-2010, 02:15 PM

I traditionally follow a value investing-esque approach

1) Screen for companies with low p/e, low price/bv, not trading near 52 week high, strong management, management has "skin in the game", no unions, ability for divestures

2) calculate NAV and EPV to find entry and exit prices (taking into account what you feel will be the probability of unlocking overlooked value) with a margin of safety of 30%

I tend to favor companies with a business model that's easy to understand. Also make sure it can generate positive cash flow. Nothing kills good businesses more often then inability to cover interest.

03-19-2010, 02:15 PM	#4
97ITR Diagonally parked in a parallel universe Join Date: Dec 2001 Location: Vancouver Posts: 1,401 Thanked 84 Times in 33 Posts Failed 7 Times in 4 Posts	I traditionally follow a value investing-esque approach 1) Screen for companies with low p/e, low price/bv, not trading near 52 week high, strong management, management has "skin in the game", no unions, ability for divestures 2) calculate NAV and EPV to find entry and exit prices (taking into account what you feel will be the probability of unlocking overlooked value) with a margin of safety of 30% I tend to favor companies with a business model that's easy to understand. Also make sure it can generate positive cash flow. Nothing kills good businesses more often then inability to cover interest.