Detail Security Selection of Modern Value Investing

1. Corporate Point of View:

A. This enterprise is simple and can understand?

B. This enterprise operating history stability?

C. This enterprise is optimistic about prospects for long-term development?

2. Business Operation Point of View:

A. whether the operation rational?

B. Business operators on whether shareholders in his frank honesty?

C. whether the business operator to concentrate on this industry?

3. Financial Point of View:

A. To focus on return on equity (ROE), rather than the earnings per share

B. Calculated a discounted free cash flow (DCF) of a stock:

C. Find high profit margin company

D. For every dollar of retained earnings, the company identified at least has created more than one yuan in the market value of

4. Market Point of View:

A. The value of this enterprise, what is?

B. This enterprise is able to purchase ultra-low value. (From the safety of the more marginal far better)

5. Leading Point of View:

For the same industry must be absolutely overwhelming superiority

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