am i doing this right ?

**jjk2** Sat Mar 01, 2008 2:12 pm

am i doing this right ?
hello i am new to this forum.

i used to daytrade currencies but im just taking a rest from it, there is too much noise to go through with it everyday and i've always been interested in investing....i think its more passive relatively compared to trading.

i've never looked at other type of investing style. growth kinda blew up in the millenium. i think value investing has held up very well, it wont do spectacular during mania markets but i believe it adheres to contrarian and absolute returns.

i am still learning how to invest with value philosophy

how does everyone do it?

first, i would start off with a company i can identify right away with a economic moat against competitors. preferably based on macroeconomics.

second, look at the qualitative traits of the company, management, and so on (leaving the math to the last ), and microeconomic position.

then do discount the financial statements and so on....how much weight do you put on to this process? in the past i admit i just picked stocks based on the first two steps and the stocks have performed well....of course it was mere fluke :)

i have never found any "margin of safety" since trying all these out ! am i doing something wrong. i am reading the security analysis textbook to help me guide through the statements.

i am also reading BH letters, and value investing beyond graham and buffett (the accounting stuff was a bit heavy for me).

Thank you for reading.