Fair Value in a Falling market
The money that has been made on the stock market over the last 5 years has gone.
But there are some great bargains out there at present.
Warren Buffet maintains that to buy a stake in a company:
1.A company should make something that everyone needs
2.It should be profitable and well run
3.It should provide an income stream.ie dividend.
4.It should offer fair value when compared with asset backing.
There are a lot of companies that now meet these criteria.
Now is a good time to buy.
Airline stocks have always been stocks to avoid.
But....with Qantas shares approaching float price you'd have to be tempted.
Dont try to pick the bottom of the market before buying.
Do the research and if a company meets the above criteria...buy them