Quality investing includes identifying value stocks of companies with the characteristics of good businesses. We are going to examine the characteristics of quality that distinguish between a real value investment and a value trap.
...The Piotroski F-Score Test is a value investment analysis tool to identify stocks of companies with good fundamentals and eliminate stocks of weak companies. Piotroski developed a 9 point F-score ranking system that has produced an incredible performance record of finding quality investments.
...Sustainable competitive advantages are company assets, attributes, or abilities that are difficult to duplicate or exceed; and provide a superior or favorable long term position over competitors. Companies with one sustainable competitive advantage might be successful. Finding companies with multiple sustainable competitive advantages will greatly improve the chances you have found a real value stock.
...Use stock valuation tools such as the PEG Ratio to evaluate and compare companies. The ratio provides insight into the trade off between the price of the stock, the earnings per share, and company’s expected growth rate!
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As founder of the Arbor Investment Planner my passion is to educate and empower the individual investors to manage their own investment portfolio.
The Arbor Investment Planner is a value investment portfolio management guide for those individual investors who choose to manage their own money. I focus on ideas and concepts important to the self directed investor; but put special emphasis on risk management, value investing strategies, and proper asset allocation and diversification.
- Ken Faulkenberry
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