💎 Value Investing — The Buffett-Graham Way

Value investing finds stocks the market prices below their true worth. Buffett: "Be fearful when others are greedy, and greedy when others are fearful." This method requires 3-10 years patience.

Margin of Safety

Core concept by Benjamin Graham. Only buy when price < 70% intrinsic value. This buffer protects from valuation errors.

Intrinsic Valuation

DCF (Discounted Cash Flow): forecast future cash flows, discount to present. Asset-based: total assets - liabilities. Earnings power: EPS × appropriate multiple.

Buffett Criteria

1) ROE > 15% sustained 10 years. 2) Low Debt/Equity. 3) FCF growing steadily. 4) Moat (competitive advantage). 5) Honest management with skin in the game.

Graham Criteria

P/E < 15. P/B < 1.5. P/E × P/B < 22.5. Current ratio > 2. Dividend yield > 0. Earnings growth > 33% over 10 years.

Vietnam Application

Stable blue-chips: VCB, FPT, VNM, GAS. Defensive sectors: utilities (POW), consumer staples (MSN, VNM), healthcare (DHG). Avoid penny + speculative.

Required Mindset

Patience 3-10 years (Buffett: "Time is the friend of the wonderful company"). Ignore daily noise. Read financial statements regularly.

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🔗 Related Strategies

🚀 Growth Investing — Find 10-Baggers 💰 Dividend Investing — Build Passive Income

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