A study showing that buying low P/BV + Div yield outperform the market.
Back in 2012, i came across an interesting and educational article in the Business Times by Ms Teh Hooi Ling. It was a piece on how a research study had shown that buying low P/BV + high Div yield stocks outperform the market.
I am not going to add to it or try to summarise the article. I think the best way to give credit to the author is to simply just provide you guys with the link to the write-up. Please refer to the URL link below for the write-up.
For those who wants to act on this strategy, you can do so with the data found on POEMS Stock Analytics. The data below is taken a long time back and is for illustration purposes only. I did this on purpose. Please do not follow this strategy blindly.
When applying this strategy for long-term investing, please exercise your due diligence in studying the business model of the company as well as assessing the macroeconomic environment. Simply put, fundamental analysis is not just about looking at the financial ratios, your assessment of the quality of the business is equally or if not more important!
For those who wants to find out more on how Stock Analytics can help you in your investment decisions, you can refer to the URL link below.
Stay tune on this website as I will doing a write-up soon on valuation methods. Thanks for your support. I believe that leading a great life is more about doing meaningful work and less about doing a well-paying job. More about having a sense of mission and less about having a high social status. It is with this belief that my friends and I want to start this website to empower people and kickstart their journey with money!