INVESTOR TYPE · VALUE HUNTER
Value Hunter
Gets in at a low price and waits until it reaches fair value
Metrics to watch
My investor type
Value Hunter
- PER
- PBR
- ROE
What it means
You read the price tag closely. You care more about a good price than a good company, and the first thing you check is whether the price is low relative to current earnings or assets.
A low price often has a reason, so it is safer not to rely on a low PER or PBR alone but to look at why the price is low. It helps to check whether profitability backs up the low valuation.
Strengths
- Not swept up by high prices
- Good at finding opportunities in a falling market
Points to watch
- The reason for a low price can be a structural trap
- Waiting for fair value can take long enough to wear you out
Worth a look on Jupick
This result is reference content that describes an investing style. It is not a suggestion to trade any stock and not investment advice. Investment decisions and their responsibility rest with you.