Page 1 of 1
Q.1
Value Investors are prepared to hold on to their stocks until the Value is realised. They are essentially long term Investors.

Q.2
Successful Value investors tend to be contrarian in nature, buying when everyone in the market is selling and selling when everyone in the market is buying.

Q.3
Value Investors adopt Qualitative methods in order to select which stocks to buy. A successful Value Investor is proficient with reading annual reports and attends AGMs to understand the nature of companies' business and the strength of their management team. .

Q.4
Growth Investing and Value Investing are at opposite ends of the spectrum. It is impossible to invest in growth and value at the same time

Q.5
Value Investors use Intrinsic Value as an indication of how much a company is worth. This amount can be obtained from the Balance Sheet section of the Annual Report

Q.6
Value Investors are always on the lookout for a good Margin of Safety. The Discounted Cash Flow method can be used to determine the margin.

Q.7
Benjamin Graham was first to use the 'net-net' method of valuing companies. A 'net-net' is a company selling for less than current assets minus all liabilities.

Q.8
A high Price to Book (P/B) Ratio indicates that the stock is highly valued by investors and hence signals a good buying opportunity.

Q.9
Value Investors tend to own a few stocks that they have in-depth knowledge of. In Value Investing, a focused approach works better than diversification.

Q.10
Value Investors use different methods of determining the fair value of a company and deciding what to invest in. There is no one single right or wrong method that is superior over others.

Page 1 of 1