Highlights

THE INVESTMENT APPROACH OF CALVIN TAN

Author: calvintaneng   |   Latest post: Sun, 16 Sep 2018, 01:03 PM

 

Market correction? Just do what Warren Buffett does, says one investor (With comments by Calvin Tan in BOLD LETTERS)

Author:   |    Publish date:


  • Market corrections are often seen as a buying opportunity for many investors as they quickly reduce the value of equities.
  • Nusseibeh added that markets are in a different environment from the time that preceded the last financial crisis of 2008. The underlying economic picture is "really very strong," he added.

 

 

 

Warren Buffett

Warren Buffett

 

Worried money managers who are fretting about the recent market correction and the future of their portfolios just need to follow the advice of legendary investor Warren Buffett, according to one investment manager.

"What do you do if the market drops from here? Warren Buffett famously says 'If I see a sale in my favorite store, I go and buy some more of the stuff I like'," Saker Nusseibeh, CEO of Hermes Investment Management, told CNBC Thursday.

(IN REAL LIFE IF YOU BUY 1 KG ANLENE MILK POWDER AT RM36.00. IF  SALE PRICE DROPS TO RM29.00? YOU GO AND BUY ANOTHER TIN! WHY IF PRICE DROPS TO RM24.90? SURE HAPPY TO BUY ANOTHER 2 TINS!!  NOW WHAT IF PRICES DROPPED TO RM19.90? RM14.90? OR RM9.90?

NOW YOU ARE IN A STATE OF PANIC? WHY SO CHEAP? HOW COME PRICE DROPPED TO RM9.90?  (NOW THIS IS JUST AN ILLUSTRATION). YOU START TO HAVE SECOND THOUGHTS ABOUT BUYING. IS THE GOODS EXPIRED? ARE THEY IMITATION PRODUCTS?

THEN YOU CHECKED & CHECKED. SOLD BY COLD STORAGE OR AEON OR GIANT (MUST BE AUTHENTIC). THEN AFTER CONFIRMING THAT IT IS GENUINE - YOU GO AND GRAB SOME MORE!!)

THE ABOVE IS HOW PEOPLE BEHAVE IN REAL LIFE

NOW IN THE STOCK MARKET PEOPLE BEHAVE IRRATIONALLY. PRICES OF STOCKS HAVE GONE UP? BUY LAH! SURE TO FLY HIGHER! SO MORE AND MORE PEOPLE PILE IN AND CHASE THE HOT STOCK!!) 

SUPPOSE ANLENE PRICE GOES UP FROM RM36.00 TO RM46.00? DO YOU BUY ANOTHER TIN? OR PRICE CROSSED RM60.00? BUY ANOTHER 2 TINS?  NO!!  IN REAL WORLD WHEN PRICES OF GOODS GO UP - DEMAND DWINDLES!

BUT NOT IN THE STOCK MARKET. THE HIGHER PRICES SURGE UP THE MORE MAD PEOPLE CHASE IT (SEE HOW IFCA SHOT UP FROM 7 SEN TO RM1.87?)

NOW LET"S SEE. PRICES OF STOCKS START TO GO DOWN. PEOPLE PANIC SELL. AND PRICE GOES DOWN EVEN LOWER - MORE PANIC SELLING & EVEN LIMIT DOWN.

THIS MAD IRRATIONAL BEHAVIOR EVENTUALLY CAUSE 90% OF STOCK MARKET PLAYERS TO LOSE MONEY BY FOLLOWING THE MADDENING CROWD.

THEY SHOULD BUY WHEN CHEAP LIKE WARREN BUFFET!)

 

Markets in the U.S. had dropped 10 percent at one point last week — pushing into correction territory — following a data release in the U.S. that sparked fears over a stronger-than-expected uptick in inflation. Market corrections are often seen as a buying opportunity for many investors as they quickly reduce the value of equities. Nusseibeh's comments highlight Buffett's famous line from 2008 when he said: "Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down."

(HA! NOTE THE WORDS OF SIFU WARREN, "WHETHER WE'RE TALKING ABOUT STOCKS OR SOCKS, I LIKE BUYING QUALITY MERCHANDISE WHEN IT IS MARKED DOWN"

THESE ARE SANE, SOUND & RATIONAL WORDS. TO BUY WHEN PRICES ARE MARKED DOWN. THE CHEAPER THE BETTER. 

LAST TIME CALVIN BOUGHT PERAK CORP AT 60 SEN. . THEN AFTER BUYING PERAK CORP AT 60  SEN PERAK CORP  EVEN CRASHED TO 40% FOR ANOTHER 33% DROP

SO PANIC CUT LOSS ON PERAK CORP? NO!

SEE PERAK CORP LATER JUMPED TO RM3.60

SO THOSE WHO BOUGHT PERAK CORP AT 60 SEN MADE 600%

BUT THOSE WHO BOUGHT AT THE ROCK BOTTOM PRICE OF 40 SEN DID BETTER. THEY MADE 900% (THAT'S 50% MORE THAN 600%)

 

According to Nusseibeh, now that markets have slightly come off their recent highs, and given that economic growth is strong and there are good prospects for solid earnings, it's the moment to seize the opportunities in the stock market.

"So if you have a long-term view that markets are frothy, they have taken some of the froth out and if you are really investing for a 10-year horizon, yeah you buy the stocks that are solid, that you think you like the underlying earnings and you go into them and you wait until they calm down," he said.

Nusseibeh added that markets are in a different environment from the time that preceded the last financial crisis of 2008. The underlying economic picture is "really very strong," he added.

 

(MARKET FOR 1997/8 ASIAN FINANCIAL CRISIS WAS MARKED BY A WITHDRAWAL OF HOT MONEY FROM ASIA & MALAYSIA IN PARTICULAR. SO NO LIQUIDITY CAUSED COLLAPSE!

2007/8 US SUBPRIME CRISIS WAS CAUSED BY OVERHEATED HOUSING BUBBLE BURST. AGAIN LIQUIDITY OVERSTRETCHED!!!)

TODAY WITH US FED PUMPING HUGE AMOUNT OF LIQUIDITY INTO THE ECONOMTY IT IS A COMPLETELY DIFFERENT SCENARIO.

THESE ARE THE LAEST PUMP PRIMING

1) USD1.5 TRILLIONS PUMPED INTO CORPORATE BALANCE SHEETS BY REDUCTION OF TAX FROM 35% TO 21%) COMPANIES ARE FLUSHED WITH EXTRA PROFITS!!

2) APPLE, CISCO & OTHER COMPANIES ARE BRING BACK CASH STORED ABROAD BECAUSE US HAS REDUCED TAX PENALTY FROM 35% TO 21%. ANOTHER SAVINGS OF USD1.5 TRILLIONS?

3) BY OVERCOMING US TARIFFS MANY FOREIGN COMPANIES ARE RUSHING TO USA TO SET UP FACTORIES FROM MEXICO, CHINA, JAPAN & EVEN MALAYSIA. SEE SCIENTEX ALREADY PLANNED TO START FACTORY IN THE US?)

THIS WILL PUMP ANOTHER USD1.5 TRILLIONS FDI FOR USA?

 

4) LAST WEEK TO PREVENT US GOVT SHUT DOWN CONGRESS HAS SIGNED ANOTHER USD300 BILLIONS (PRINTED MONEY FROM THIN AIR BY FED PRINTING PRESSES)

 

5) ANOTHER USD1.5 TRILLIONS ARE NOW PROPOSED BY TRUMP FOR US INFRAR WORKS (OF WHICH USD200 BILLIONS WILL BE FROM THE PRINTING MACHINE)

 

AHA! ALL THESE FIGURES ADD UP TO USD6.3 TRILLIONS BEING PUMPED INTO THE US. SO FAR FROM STOCK MARKET CRASHES YOU CAN EXPECT THE DOW JONES TO BE PUMPED  UP  AND  UP TO 30,000 POINTS INDEX!)

 

 

"There's a lot more to come. Ultimately if you're buying into shares, you're buying into the health of the corporate entities underlying and the corporate health in a lot of these entities is strong. And even moderate growth in wages will lead to consumer spend, and let's see what the effect of what the (President Donald) Trump administration has done on the U.S. economy, that's huge," he said.

However, Nusseibeh warned that it's important to have diversified investments and not concentrate all your portfolio in one place.

"The story is still for good corporate earnings but pick your time and, you're right, don't put all your money in at once," he said.

 

Calvin additional comments:

With these synchronised money printing from USA, China, Japan & all other nations combined you can expect Very High Inflation due to the destruction & debasement of all paper currencies on planet earth.

SO YOU MUST HIDE IN THE SAFETY OF VALUE STUFF

ANY THING MEN CANNOT CREATE OUT OF THIN AIR LIKE PRINTING MONEY

 

These Ones:

Gold & all precious metals

Land, houses, farms, plantations, timber, shophouses

Bonds of Govt (only good solid Govt like Spore)

Shares of Good & Solid Companies (not pump & dump hot air balloon stocks please)

GOOD LUCK & HAPPY CHINESE NEW YEAR

KONG XI FATT CHAI

 

Warm regards

Calvin Tan Research, Singapore

 

Coming up next:

TA ENTERPRIZE - The Transformation of a  "Top A Enterprize"

 

 

 

 

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  SS Loh likes this.
 
Goh Kim Hock this is naive lah Calvin.

When Warren Buffet buys a stock, he has his own intrinsic value. When Mr Buffet says his favorite stocks, which means those high quality stocks that he is holding right now being battered down. Hence, he will not hesitate to top it up. This only applies to good fundamental stocks (we know Mr Buffet only holds fundamental stocks).

You bring up rubbish counter PrkCorp for what? A loss making company, which does have a moat factor at all. It shot up bcos certain individuals promoted and speculated on it. When downturn happens, it will not recovered; unlike those stocks held by Mr Buffet.
16/02/2018 10:46
Koon Bee Agreed with Mr Gohkimhock...this calvintaneng really a joker
16/02/2018 10:50
Koon Bee Calvintaneng really bad luck...CNY 1st day also kena whack by us like no tomorrow...so suey for whole life
16/02/2018 10:51
Goh Kim Hock Nope. I am not here to whack Calvin. Just sharing opinions. I only whack conman CP Teh and his other dogs. I like Calvin for his unselfish sharings. I am sure we both agree to disagree.

Happy CNY 2018.
16/02/2018 10:55
calvintaneng Perak Corp is only a passing example of a Stock with NTA over Rm3.00 sold down to 40 sen then.

I have picked TMakmur, Super Enterprize, TheStore, Kulim which were all taken private. And these two also -Wangzng & Weida

And so many other stocks sold down to unwanted level
Prestar at 46 sen
Padini at Rm1.60
Waseong at 73 sen
Masteel at 66 sen
SSteel at 95 sen
Pohuat at 35 sen (before split)
MyEg at Rm1.00 before split
Jaks at 40 sen (near bottom)
Supermax at Rm1.60
Insas at 65 sen
RceCap at 27.5 sen
Drb-hicom at 92 sen

And so many more at giveaway prices last time.

For this year the sold down stocks are

Mrcb
Mphbcap
Bj Corp
Mui Bhd
All plantation stocks

Coming up next:
And this laggard - TA ENTERPRIZE - this march 2018 new powerful catalyst coming for all Security Firm stocks like Bursa, Insas & TA Enterprize.
16/02/2018 10:57
Koon Bee Post removed. Why?
16/02/2018 11:00
calvintaneng Going to visit my Singapore relatives this New Year Day

HAPPY CHINESE NEW YEAR CELEBRATION TIME

See all later!
16/02/2018 11:07
Koon Bee Ok la Calvintaneng...u got money give angpao? If dont have let me know I bank in for you
16/02/2018 11:16
calvintaneng OHOH!

TODAY IS AN AUSPICIOUS DAY!

SO BETTER KEEP HUMBLE.

JUST TO SAY I WAS CHUN CHUN ON DRB LAST YEAR. SO HAPPY NOW!
16/02/2018 16:48
apolloang pastor calvin, u know james and sean yap?
16/02/2018 16:53
Patron Chun Chun hollang calls .. gave 100 calls kena 1 call
16/02/2018 19:56
aiinvestor Dow rises 150 points, stocks on track for best week since 2011
https://www.cnbc.com/2018/02/16/us-stocks-strong-week-volatility-rates.html

Haha
17/02/2018 00:51
hollandking Happy cny to you too, calvin.
17/02/2018 01:12
michaelwong Datuk Can'twin your articles are nothing better than a wild bullet shot in the eye's of the needle !!!
17/02/2018 11:53
aiinvestor JPMorgan Says Don't Lose Any More Sleep Over Stock Volatility
https://www.bloomberg.com/news/articles/2018-02-16/jpmorgan-says-don-t-lose-any-more-sleep-over-stock-volatility
17/02/2018 20:07
aiinvestor Volkswagen is looking to expand its market share in the electric vehicle market by looking to Apple for design guidance.

The German car manufacturer has said it will use Apple’s products as a template for designing its new electric vehicles over the next two years. The aim is to adopt a simple design and to turn around VW’s profits in the new expanding market, when the vehicles are launched in 2020, with the most simplicity possible.
https://www.cbronline.com/news/vw-apple-vehicle
18/02/2018 00:26


 

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