CFA wannabe here too Level 2

Anyway Phoeni_142 are you by chance in the finance industry in Malaysia too ??

What you said was totally true CFA models has no value in Malaysia but i believe it applies to more financially advance countries.

DDM is heavily reliant on the accuracy of your variables and like what Phoeni_142 said it is so subjective. Secondly, your dividend discount model assumes one growth rate period...when firms have multiple growth rate, how sure are you that dividend payout remains constant?

The problem in using this models in Malaysia is that we have a very ineffective corporate communication system and that companies are not investor friendly...if information was readily available i dare say DDM would be a very good indicator.

And lastly aunt and uncles cant do much to push the market, its only foreigners and EPF

Hey Phoeni_142 yea i am in asset management, and i dont have the moolah to go into properties yet

Anyway to the trolls...if you were really in the finance sector what is wrong with Phoeni_142 argument's for the masses?

Investment theories are useful reference but i do not think it can be universally applied because of difference in system, regulations, culture, etc. When you invest in something you have to know what your investing into, please dun try to counter the argument with some generic crap like toilet paper. Historically low PE might be a good indicator of bottom but it is not sure fire, which is why he mentioned that it has to have a sustainable future.

And if your going to argue please know your facts instead of stating blanket quotes...nobody is an investment guru ok even Warren buffet, im sure he learns new stuff every single moment...acting high and mighty only makes you look like an ass.