A safer path to generate passive income
Cheah Chor Sooi | 30 Nov 2018 00:30
The current soft market in global equities has elevated value investing as a viable strategic preposition.
Unlike technical analysis which is vulnerable to market volatility – or is cumbersome as investors need to proactively monitor market trend – value investing is capable of generating passive income even when one is asleep, literally.
From a layman’s perspective, value investing simply entails the purchase of fundamentally sound undervalued stocks while allowing their prices to appreciate, according to Value Investing College (VIC) Malaysia’s master trainer-cum-head of operations Low Chern Hong.
This type of approach suits investors who treasure peace of mind or are not desperate to seek quick profit. In a way, value investing can be deemed as the middle path between technical and fundamental analysis given that it emphasises how to safely invest in the stock market.
In this regard, Low observed that 95% of investors – especially first- and small-timers – lose money in the stock market because they merely focus on market price and fail to consider the business value of the counters they buy into.
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