Just skimmed over the basics of Rule #1 book, they basically said "follow this formula on judging what the stock price should be, if the actual stock price is less than half of that, buy it". I haven't read the part where they tell me to sell yet, but I'm guessing it's probably "sell when the actual stock price is 1.5x as much as it's worth", with the worth being determined by this formula.
The formula's inputs are: "Current EPS", "10 year equity growth rate", "Average P/E Ratio".
Questions:
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Can you actually gauge a stock's worth with just those 3 inputs?
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Is there a way (or website) for me to quickly download lots of company inputs (3 stats above), along with the current stock price, for me to quickly determine which out of the lots of companies to buy? The way he describes it, very few companies will be have stocks selling at half their worth.
Thanks everyone.
Submitted December 13, 2018 at 02:04PM by ppzhao https://ift.tt/2BcV5o2
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