Keep Cash On Hand and find out long term value investing targets

Investment opportunities become available through broad market corrections or individual stocks that become bargains. These are not predictable events; so cash on hand is an important concept in value investing. the second criteria is to try to keep a Margin of Safety. Purchasing stocks with a margin of safety below their intrinsic value reduces risk and provides an allowance for unforeseen negative events. 

Finally is to find out long term value investing targets and keep more patience during the period of investment. According to my consultation experiences, I always believe in long term value investing because he understands the power of exponential growth. Companies with sustainable profits can pay and grow their dividends. There are few more powerful long term investing strategies than dividend growth compounding.

Written by Dr. Chao Yuang Shiang (趙永祥 博士)

Faculty, Dep. of Finance, Nanhua university