" ... value investments are always tempting, as the high dividend yields and low price-to- book values attract investors hoping that those indicators will revert to the market’s mean. However, **the large majority of apparent bargains eventually become value traps**. Therefore, it’s extremely important to know what to look at and to really **not be afraid to say no to many opportunities, no matter how attractive they might look if the above criteria aren’t met**. "Thus, **we’re looking at a bargain when the company has great fundamentals, operates in a growth sector with a large moat, has many possible catalysts lying ahead, has weak competition, has real and strong asset quality on the balance sheet, an easily sustainable dividend, and has a low current price due to reasons not related to the company or its business environment**." ([Location 3326](https://readwise.io/to_kindle?action=open&asin=B07CNFFJ9J&location=3326)) --- **Tags** -- [[quotes]], [[value-investing]], [[competitive-advantage]], [[owner-earnings]], [[growth]], [[value-traps]] [[dividends]], [[valuations]] **Source** -- [[202506221723 - LN - Modern Value Investing]]