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You may beat the market

Most of investors in stock market do not believe in that an individual investor may beat the market. But I believe in it. From 1998 to 2015, my annual investment IRR is higher than 30%. I believe the most important thing in stock market is how to identify a good stock. By correct method, you may also beat the market and be rewarded in stock market.

  How to identify a good stock

Following steps may help you indentifying a good stock in stock market:

1. The company does not have loss in any individual year during past five years.
2. Net profit should be growing during past three years.
3. (Shareholder's fund)>=0.5*(Total liabilities)
4. Based upon predicted earning of coming year, P/E<=10
5. Calculate annual investment return:

(Annual investment return)=1/(P/E)+(Predicted compound annual earning growth rate)

Annual investment return should be 25% or higher.
6. (Stock price)<=3*(Per share NTA)
7. (Current liabilities)<=(Current asset)
8. (Total liabilities)<=5*(Annual net cashflow)
9. Based upon what the company is doing, you believe that the earning will keep growing during next a few years.
10. Good management

  My stock recommendation (Singapore stock market)

1. Chip Eng Seng

2. Sino Grandness

3. Sim Lian

4. Shanghai Turbo.

5. KSH Holdings

Updated on 30 September 2015




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The owner of this website shall not be responsible for any investment decisions made by any visitor and information user of this website.


This page is updated on 30 September 2015.