First part here

http://klse.i3investor.com/blogs/stockman/96091.jsp

In this instalment, we look at the market particpants

3 main groups

- the entrepreneurs, directors, substantial shareholders and long term investors (Box A)

- the portfolio managers (Box B)

- the traders and all the rest (box C)

So, you also want to be value investor? But where do you fit in?

For Box A people, they are likely to hold for years and decades. Their first priority is strategic issues and quality of management

For Box B people , their first priority is risk management, diversification across industries, sectors, business cycles

For Box C people, you decide. 

Your risk tolerance? Your risk aversion? Your time horizon?

Value investor?

You think one tool box fits all?

Now....everyone wants to be value investor. 

BUT Not knowing one self, hundred battles, hundred battles lost.

A self declared value investor / sifu here in i3 with a small cap portfolio that sinks and swims with small cap index

Looks like a pure number crunching portfolio. 
No weight to strategy issues of the investee, quality of directors, 

Every so called value investor in i3 will find himself in the small cap space. This is because small caps are easier to analyse,  neater, easier to understand and most of the time has a lower PE. You could have called yourself a small cap specialist instead of a valued investor.  The title sounds better?

Buy and hold

If you call yourself a value investor, it assumes there will be a period of buy and hold and your principal strategy will be based on buy and hold for some period at least.

Lets assume you do your selections carefully, in a typical year how many stocks will reward you for a buy and hold strategy?

Out of the 1000 listed companies on the KLSE , how many will reward you for the equity risk of a buy and hold strategy in a typical year? ( as compared to a Fixed Deposit account ) or as compared to the EPF account? 1%, 5% , 10%?

There is a portfolio competition going on in i3 as a buy and hold strategy from 1.1. 2016. 

How many in positive territory? How many in negative territory and the market has not even collapsed or crisis mode as it surely do once a decade. ?

Value investing? Buy and hold? Sure you know what is involved?

That's for now. 

In subsequent instalments, we will look into alternatives and why.