Knightsbridge Advisors - Helping Clients Become Value Investors

Online, June 19, 2012 (Newswire.com) - It can be a daunting task for novice investors to find bargain stocks, a stock that is trading at a discount to its fair value. At Knightsbridge Advisors, we provide investment guidelines and advice to our clients on how to invest like a value investor.

A value investor is able to find the best deals in the stock market, whether the market is bullish or bearish. These investors follow the value investing principles that were developed and popularized by the revered investor Benjamin Graham. Value investing is an investment strategy wherein investors buy stocks at a price that is below its intrinsic value. The five main principles of Graham's value investing are as follows:

1. Thorough Analysis - Graham advises an investor to conduct a thorough analysis of the company wherein the investor plans to invest. This analysis should include scrutinizing the company's financial statements, computing several ratios, looking at its business process, future plans and the company's management team.

2. Safety of Principal - another fundamental rule in value investing is safety of principal. Graham stresses that investors should make investment decisions in such a way to prevent loss of their capital in the process.

3. Adequate Return - another point that Graham emphasized is the concept of adequate return defined as "any return which the investor is willing to accept, provided that he acts with reasonable intelligence". An investment is considered to have an adequate return if it is above the prevailing inflation rate.

4. Intrinsic Value -intrinsic value is defined as the real value of a company. A value investor will normally buy shares if the current market price is below its computed intrinsic value.

5. Margin of Safety - Graham defines margin of safety as the difference between the investors' target entry price and the stocks intrinsic value. Value investors normally buy at a price that is significantly below the stocks' intrinsic value. This discipline ensures the safety of the investor's capital and guarantees an adequate return.

Similar to many successful investors around the world, Knightsbridge Advisors also subscribes to the value investing principles laid down by Graham. This is one of our ways to protect our clients from the ups and downs of the market. We normally recommend stocks that are currently trading at prices below our estimate of its intrinsic value. We also provide detailed company analysis to our clients detailing the company's business operations and financial capabilities. We also send our clients updated market reports summarizing what has happened in the markets in order for them to remain up-to-date with current events. We also provide insights on what the investors may expect from the markets in the coming days, weeks and months. We advise them on what type of stocks to invest into during a volatile market.

Within Knightsbridge Advisors, we go the extra mile to provide profitable investment strategies while adhering to the principles of value investing.

About the company
Knightsbridge Advisors, is a dynamic asset management company that provides high value-added services to its clients. The firm is registered in Zurich, Switzerland and regulated by FINMA. The company's primary business is providing asset management services to clients by assisting them in the construction of customized portfolios suited to their individual risk profiles.

Inquiries on Knightsbridge Advisors are cordially welcome. The company's contact details are presented below.

Business: +41 (435) 081048 or +41 (435) 004252
Fax: + 41 (434) 302239
Email: [email protected]
Website: www.kbridgeadvisors.ch