Wednesday 19 August 2009

Undervalued stocks: what buffettsim will do and never do

"Buffettsim analyzed the charts for 5 mimutes and found a start up, the charts looks pretty: yea, I will buy their stocks!"
I am just kidding, : )
Buffettsim will get mad if he saw it.
What will buffettsim do to find the undervalued stocks?
1. Some basic stuff about the the company, if it's easy to know what the company is doing and what's better is if they have kind of expertisement that are competitive enough.
2. Then balance sheet, read through it and you will know if the company is under good or bad management.
3. Also P/E will also show its value.
Of course there are many other elements you have to consider about, but those three are the most important for you to choose undervalued stocks in stock trading.

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