The “Relative Worth” Ratio

Value investing focuses on investing in a high quality firm that you just think is undervalued. Unfortunately, such characteristics, even if they seem together, are far from determinative as to whether an investor is indeed shopping for something for what it’s value and is subsequently actually operating on the principle of acquiring worth in his investments.

Search for fundamentally strong stocks that represent good worth with a built-in margin of safety, invest only in top corporations which have a excessive barrier to entry, solely put money into what you realize, focus your holdings and hold your investments for a really long time.

In 1998, fairly a couple of telecoms corporations in Russia had been making ROCE of 4%, whereas the rate of interest was above 18% – that if nothing else ou...