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This come from book named Intelligent Investor by Benjamin Graham
where using a stock's fundamental like:
- current P/E <= 15
- 10 yrs Earning Per Share >= 30%
- current P/BV <= 2.2
- current Debt to Equity <=2.3
It is use to find a stock that is below it real value (or cheap). I suggest using this fundamentals to help with selecting quality stock.
I think long term investing is proper way to make long term wealth. Let me know if you have try it and how does it work.
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