Myth: Value investing is buying cheap, low valuation stocks

Many investors mistakenly believe that value investing as propounded by Warren Buffett means buying low P/E and low P/B stocks

Understand competitive advantages

It is not enough for companies to be market leaders; they need to have some advantages that put them far ahead of competition

You can precisely calculate intrinsic value

Though it may be tempting to base one's decisions on a stock's intrinsic value, the fact is that finding it isn't easy and there is no one 'exact' method for finding it

Commodities offer attractive investments

Commodities are cyclical in nature and commodity-based companies are subject to constant headwinds that cap their returns

I'm investing in a stock, not in a business

Every stock has a business behind it. Ignoring the underlying business and paying attention only to the stock price is a recipe for trouble

Investing for the next ten years? Are you nuts?

Many people baulk at the idea of long-term investing, since it is fraught with uncertainties. However, a long-term approach to investing could be highly rewarding