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15 comment(s). Last comment by rajachulan at May 16, 2019 8:33 PM
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cheoky
2307 posts

Posted by cheoky > May 6, 2019 9:19 PM | Report Abuse

not dead. only the method of evaluation is evolved. primitive era, the strength of hunter is evaluated. industry 1.0, land size is evaluated. industry 2.0, factory efficiency is evaluated. industry 4.0, addiction of mass to your platform and how you turn it to profit is evaluated. there is not defined template to do this evaluation. that is the mystery, drastic fluctuation of the IT commpany share price is the result.


qqq3
12471 posts

Posted by qqq3 > May 6, 2019 9:48 PM | Report Abuse

so time to change the branding and to throw away the old soft cover books?


cheoky
2307 posts

Posted by cheoky > May 6, 2019 9:56 PM | Report Abuse

you always think you are a step ahead of KC. you tell me la. i will use my brain to filter then.


(HK1997 again) Philip
1997 posts

Posted by (HK1997 again) Philip > May 6, 2019 10:55 PM | Report Abuse

It's not new. Warren buffet has been doing this for a long time, like I said many times before, ALL investing is based on some form of value. In the end price is what you pay, value is what you get. If you are willing to pay a certain amount today to get big benefits in the future, then it is good.

There are pe50 companies, and there are pe50 COMPANIES.


qqq3
12471 posts

Posted by qqq3 > May 6, 2019 11:01 PM | Report Abuse

all those value investing tools, no need one.

just focus on buying quality stuffs good enough for the masses.

quality stuffs are stuffs people like to be associated with., good enough already.


enigmatic [Breaker of Speculative Investing]
358 posts

Posted by enigmatic [Breaker of Speculative Investing] > May 7, 2019 1:28 AM | Report Abuse

Not really dead. Buffett never discloses how he precisely selects stocks, so he might be using the same method he used. Or even if he deviated from what he used to do, it is still value investing. The idea of value investing is always to buy stocks below the intrinsic/apparent value. Buffett probably thought Amazon to be undervalued now, could grow further in future & probably has a very strong sustainable competitive moat.

From what I see, Buffett is now acquiring shares of strongest companies, eg Apple, Amazon. Perhaps, he wants Berkshire to be the monopoly holder of strongest stocks for the next 50 years.


Choivo Capital
3096 posts

Posted by Choivo Capital > May 7, 2019 1:53 AM | Report Abuse

Value investing is buying all future cash flows, discounted to present value, at a discount/margin of safety.

This means, one of this fund mangers, believes amazon will be making a ton more money in the future with a high level of confidence.

That's it.


(HK1997 again) Philip
1997 posts

Posted by (HK1997 again) Philip > May 7, 2019 8:13 AM | Report Abuse

This is not it. That concept is inaccurate and pretty much IMPOSSIBLE TO ESTIMATE as a reliable method of investing. 5 years of good returns does not project 10-15 years of cash flow returns. You cannot box in investing into one simple mental model. In fact, I said it before many times, ALL investing is VALUE investing. But now that Warren says it, buying pe50 companies ( with monopolistic characteristics) suddenly makes sense.

The most simplified way of looking at Berkshire investment is using these basic mental models:

1. The only assured, GUARANTEED way for shares prices to go up in the long term is with rising revenues, rising earnings fueled by controllable debt.

2. The easiest way to identify companies with competitive advantage is to first look to the market industry leaders and benchmark them against everyone else. A simple moat (like location, brand, management, cash pile) can go a long long way.

3. The idea behind paying up for wonderful companies versus paying cheap for average companies is based on the concept of risk. The first 10years of Amazon is growth fueled by high risk high reward. Now that they have built a dominant position in the market, that risk is getting lower and lower. Understand Risk first and foremost before investing.

4. Cash flows needs to have context. Matured companies will have better can flows than start ups. But just like a mirage in a desert, if you don't understand CONTEXT, you will not understand VALUE.

5. Everyone seems to want to look for the next Google, next Amazon, next Apple at it's infancy. But for every Google out there you will find a pets.com. history has shown buying quality works. If you had bought s&p 500 over the last 20 years and reinvested your returns, even without knowing a thing about stock picking you would have done well. In Malaysia, even if you knew next to nothing about investing, if you had just bought a basket of stocks around the most solid industry in Malaysia ( banks) if you had reinvested and continued investing in the market leaders (rhb, Hong leong, public, Maybank, cimb, bank Islam) over a long period 10-15 years you would have done well.
Buy quality, it works.

Investing doesn't have to be hard. You host need to be consistent, patient and concentrated.

>>>>>>>>
Posted by Choivo Capital > May 7, 2019 1:53 AM | Report Abuse

Value investing is buying all future cash flows, discounted to present value, at a discount/margin of safety.

This means, one of this fund mangers, believes amazon will be making a ton more money in the future with a high level of confidence.

That's it.


qqq3
12471 posts

Posted by qqq3 > May 7, 2019 3:49 PM | Report Abuse

osted by Choivo Capital > May 7, 2019 1:53 AM | Report Abuse

That's it.
=========

u didn't get it while Philips gets it.


VSOLAR Sailang Margin All In
2671 posts

Posted by VSOLAR Sailang Margin All In > May 7, 2019 4:08 PM | Report Abuse

Buy good quality, investment grade companies. - PUNTER IB


enigmatic [Breaker of Speculative Investing]
358 posts

Posted by enigmatic [Breaker of Speculative Investing] > May 9, 2019 11:55 PM | Report Abuse

Why isn't anyone discussing about this? This should be an interesting topic. Don't tell me 99% of i3 members are day traders who rely solely on technical analysis?


supersaiyan3
2003 posts

Posted by supersaiyan3 > May 10, 2019 12:05 AM | Report Abuse

OMG.

I try to make it simple.

Amazon is investing heavily into the future, deduct that from the account, Amazon is making HUGE profit.


whalehere
184 posts

Posted by whalehere > May 12, 2019 8:10 PM | Report Abuse

Amazon is slowly turning into the monopoly for all industries with its tremendous EOS. I guess that's what the investment is based off..


Fabien "The Efficient Capital Allocater"
1131 posts

Posted by Fabien "The Efficient Capital Allocater" > May 16, 2019 4:40 PM | Report Abuse

Quote from Warren Buffett himself

"The decision to buy Amazon’s stock was just as much based on value investing principles as a decision to buy a statistically cheap stock. Value investing is about estimating and valuing future cash flows, not about how low a Price to Book or a Price to Earnings ratio is for a stock.

You can pay too much for a wonderful business. There is a price where we could have paid too much for See’s Candies and it wouldn’t have worked out well as an investment. You can turn any investment into a bad deal by paying too much. What you can’t do is turn any investment into a good deal by paying a cheap price."


rajachulan
883 posts

Posted by rajachulan > May 16, 2019 8:33 PM | Report Abuse

It wasnt buffett, it was his manager

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