Hi, I'm a CFA, and I must tell u this now - DDM is a bunce of nonsense - so are all the analytical tools out there.......I always laugh my head out when an analyst writes a report to recommend a "fair value" of the stock.......What arcane BS!

Let me be frank here - a stock price is not determined by DDM, or by cash flows discounted at any friggin damn rate.  Well, in theory it is.... 

But in reality....It's determined by you and me.....Yeap - u read correctly......by you and me - and by all the auntie and uncle speculators, fundamentalists etc........It's an arms length transaction between buyer and seller....You think they give a damn about the discounted cash flows of a company for the next 5 or 10 years?

Long story short, suggest u just do three things....to try to keep it simple.

1.  Buy a business, not a stock. 
2.  Buy a business with a sustainable future.  E.g. If u have not used its products or services b4, don't bother buying it.
3.  Buy it when people are selling or are being emotional....A useful tip is when the business is trading at all time low or historically low PE.

it depends.  Do u understand their business intimately?

I don't pretend to know everything.  I don't know anything about KNM or QL.  Why? I just don't understand their business model, and I can't relate to it.

Let me give u a simple example.  I've been an avid investor of F&N for years.  Why? It makes sense to me.  I drink 100 plus almost daily.  Everytime u drink teh tarik....F&N also profits from the condensed milk used. 

Forgive me, I have a primitive brain.....i like to keep things simple.

So, you be the judge.

Norman,

I am in agreement with you that everyone has his or her own opinion.

However, I respectfully disagree with your assessment of the situation.  Please do not make such sweeping statements, and quote me Benjamin Graham as though it is a fundamental guiding law. 

I also can read the "Intelligent Investor" and parrot his philosophy. 

1.  Your analysis is misguided.  His investment rules were never limited to the DJ 30.  You mean understanding a company's business has lost all meaning, and that u should just rely on technical analysis for companies outside the DJ 30? Wow.....if u have done well using this philosophy....I congratulate you.....and I certainly hope your success has sustainability. 

2.  Read Buffett, Peter Lynch and Jerry Porras to have a more balanced view please. 

3.  Form your own opinion from your readings, and don't parrot the authors - perhaps we can have a more matured conversation then.

Goodbye!

Normante,

why are u just parroting and trying to be arrogant?  Did you google all those titles up there just to potray yourself as "intelligent"?

Sigh - people like you are despicable. 

You may also want to brush up on your grammar.  Your command of English leaves much to be desired.

You don't even understand Public Bank's core business.....and you want to venture into overseas equities?

I know your type - only flashing phenomenal returns from your so called "mythical and phenomenal" portfolio.

Deep down - I know there's not much substance, and I suspect not much returns to go with it.  Good luck in your endeavours.  You're really not worth my time.

how/what to understand the core business of company ahh?

Say people dunno you CFA also dunno gua??