Curious.

Most of the famous investors.. Buffeskin analyzer devicett, Lynch, Graham etc propose entry either on a margin of safety (e.g. 30% below intrinsic value), a % discount to the lowest P/E in recent history or a % discount from a peer average P/E.

The obvious problem is.. I don’t see what FA does to project whether…
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Curious.

Most of the famous investors.. Buffett, Lynch, Graham etc propose entry either on a margin of safety (e.g. 30% below intrinsic value), a % discount to the lowest P/E in recent history or a % discount from a peer average P/E.

The obvious problem is.. I don’t see what FA does to project whether things will get lower?

eg in the first financial crisis in 2008.. if you’d strictly followed a Grahamian / Buffett / Lynch approach, you would have been skinned alive catching a falling knife.

So what FA approaches are there to predict a bottom?

TA wise obviously there are many methods to try to predict one.. (try)

Answer:
Maikang I look at Fundamental Analysis as an art that everyone admits is an art, while Technical Analysis is an art that some people try to pretend is a science. Honestly, give me ONE stock, right now, that based on TA will go up in the next 90 days regardless of market conditions (because what you are saying is FA does not predict market conditions and that is its flaw), the economy and corporate earnings.

Technicians are great for looking at the past and pointing to how they were right, but I’ve never seen one who can predict accurately stock movement better than FA.skin analyzer

Maikang After 2008, it would not be very smart to follow that approach. How many times did you hear pundits on CNBC saying “Citygroup is cheap at $20, it cannot go any lower”.skin analyzer