I tag PBB below RM6 as fair value. Obviously and notoriously our price is overpriced. Studies indicate that our banks book value is the highest among the region.

I take the risks that PBB distribute high dividends, so that I would reduce the cost significantly after few years.

Aye.
CIMB : 6
PUBLIC : 5
Maybeng -:4-5
HL, RHB : 3-4
Other small bank - all below 3

In fact it is the best to invest only when it comes to at least near to the intrinsic value, to reduce the risks. You see Warren Buffet does not spend until market declines to the price he wants, he waits like crocodiles under the river for many years patiently until its prey approaches. Before that we can accumulate our bullets. Make every shot counts.

I waited quite some time, then I entered PBB at RM7 at the begginning of the year. I think by next year the dividends received would make my entry price reseonable. For those with low diviidend yield I do not dare to use the strategy. I will insist to wait until the price meets my target price.

Just to share.