THE RELENTLESS PURSUIT OF VALUE.
In Year 1949 Warren Buffet bought “THE INTELLIGENT INVESTOR” By Benjamin Graham. He called it the best investment he made in life. It was this relentless pursuit of Value Investment that made his Berkshire Hathaway so successful and those who invested in his shares became millionaires.
I Think There Are 8 Things About Value:-
1) Value Is Mispriced By The Market.
Benjamin Graham seeks for Shares With High NTA. NTA stands for High Net Tangible Asset as a Margin of Safety. Usually these Securities are In Some Form of Trouble with negative connotation. Or they are dull and uninteresting – so rejected by the Market.
I remember Mr. Liew of Helang Camar Used Car telling me how he searched for mispriced Auction of Repossessed Cars. He found a Proton Saga 1.5 labeled as 1.3 when it was displayed for Auction. How did he detected the difference? In the Displayed Notice The Proton was stated with 1.3c.c. engine. But when he checked with the RoadTax Disc he clearly saw that it has a 1.5c.c engine. And there is a price difference of RM3,000 between a 1.3 & a 1.5 liter Proton in those days. So he bid a higher price for a 1.3 Proton but got a Value Buy.
2) Value Is Misplaced.
One of my favourite past time is to look for good durians when they are in seasons. There are many classifications for Durians like D24, D12, D10, Hoong Har, Mai Sang Wong or just ordinary kampung ones.
Sometimes during collection and sorting and distribution one or two higher grade durians are misplaced into the lower end kampung pile. With training you can pick out these Value buys because they have been misplaced.
3) Value Is Overlooked.
In Year 1977 to 1980 Early Mitsubishi Sigma 1.6 was manufactured. For 4 years they did some cosmetic upgrades. But in Year 1980 End to 1983 Mitsubishi came out with a Completely New Model called Mitsubishi Galant 1.6GLS. One Day I went to submit a tender for a 1980 Mitsubishi Car advertised by a Finance Company. The Officer In Charge told me to view the Mitsubishi Sigma Car and submit a tender.
To my glad delight it was actually a MITSUBISHI GALANT 1.6GLS. So I submited a quotation. And as I was the sole tenderer I got it! You see, the Bank Officer did not bother to go to the Store Yard to check out the Model – Old or New. So Value is Overlooked.
4) Value Is Created
Singapore has overtaken London, New York & Tokyo to be the most expensive nation for expats. And by Year 2030 Singapore is purported to have the highest concentration of millionares in the world in relation to its population. Why?
Because Singapore Is A Nation of VALUE CREATION. 30 Years ago, a shop house in Holland Village rent for $1,500. Today a similar shop goes for S$30,000 or more a month. And the Spore Govt has Created An Underground MRT Station with 2 Well Positioned Entrances Right Beside the Entrance Walk Way of Holland Village. Amazing!
These Value Creations Are Found Every Where In Singapore:-
Transfomation of Pulau Belakang Mati to SENTOSA ISLAND
Shifting Payar Lebar Airport to Changi – Freeing Up Land For Sky High Developments
Shifting Keppel Harbour To Tuas West – Freeing Land For Water Front Master Pieces.
Crafting Changing Airport Into An Urban OASIS For Rest & Relaxation.
1St IN WORLD NIGHT SAFARI & RIVER SAFARI.
CREATION FIRST UNDERSEA MICE TUNNEL IN SOUTH EAST ASIA. FREEING UP LARGE SWATE OF PRIME, PRIME LAND FOR COMMERCIAL ENCLAVE.
And The List Goes On And On!
These Value Creation Upon Value Creation Has Made Singapore A Magnet For Millionares & Billionaires.
5) Value Is Enhanced.
Someone says,”A Bar of Iron costs $5.00; made into horse shoes its worth is $12, made into needles its worth is increased to $3500, made into balance springs for watches its worth is multiplied into $300,000!”
When Value Is Enhanced The GDP of A Nation Also Increases. The Swiss Army Knife is an example of the finest creation of the steel blade. Quality at its finest. So Swiss has One of The Highest Growth Story on Earth. Singapore is aiming to have the Swiss Standard of Living Some Day. I think Singapore is now near to Swiss’ Standard.
6) Wealth Is The Exchange of Value.
If you want to have wealth you must first create Value for Others. For wealth is the Exchange of Value. Seek to Give Value to The Whole World. And the World’s Wealth will be given back to you. How?
Bill Gates once said, “I want to put a personal computer in every home.” And he did just that. The entire world has Received Value. In exchange the World in turn made Bill Gates the Richest Man in The Whole World!
Jesus says, “GIVE, AND IT SHALL BE GIVEN UNTO YOU…”
Think of IKEA. IKEA has Given the Very Best To The World In Furniture:
IKEA Has Gone Into The Remotest Part of The World To Get The Best Price For Its Products. It Mass Produce Designer Furniture At The Lowest Possible Cost. And IKEA passed on the Savings To Millions.
To Facilitate Exchange IKEA’s Furniture Is Designed To Be Extremely User Friendly, You can pack the furniture into a box to fit any car. This saves cost of transportation & precious time. IKEA Also employ a group of designer to keep up with the latest in trend.
So Much Value Is Created By IKEA that the World has rewarded Igvar Kamprad, IKEA’a founder, Great Wealth and made him among top 10 Billionaires in the world.
So SEEK TO CREATE AND GIVE VALUE TO THE ENTIRE WORLD.
7) THE HIGHEST VALUE IN LIFE IS WISDOM.
Enoch Tan of Reality Creation Secrets says, “ Give time for learning, give life for love, give thanks for happiness and give gold for WISDOM.”
The highest Value on earth or heaven is not gold but WISDOM. If we have Gold without Wisdom we might lose the gold. But if we have Wisdom without gold, Wisdom will guide and lead us to find the gold.
Enoch Tan has a purpose in life. To create The Highest Value For As Many People On Earth As Possible. He started out in GIVING FREE VALUE To All In Initial Years Before He Charge a Fee For Access To His Valuable Website called “www.mindreality.com”‘
The Contents of the Mindreality Website is worth its value in gold – many times over!
8) The Most Successful Investors Are VALUE INVESTORS.
Benjamin Graham Is The Investment Guru of Warren Buffet. He advocates the INTRINSIC VALUE APPROACH TO PURCHASE OF SECURITIES.
A LIFE LONG PURSUIT OF DEEP VALUE SHARES OVERLOOKED BY THE MARKET WILL GIVE THE VERY BEST RESULTS. Warren Buffet and Walter Schloss are the embodiment of the Graham Net Net Value Investment Approach.
Some years ago Ms Teh Hooi Ling, CFA, did an experiment with the Singapore Stock Market. She selected 3 Groups of Shares From The Singapore SGX for a One Year Test.
1) The First Group Consists of Shares That Pay The Highest Dividends.
2) The Second Group Are Shares That Have The Lowest P/E
3) The Third Group Consists of Shares With The Highest NTA In Relation to Its Share Price.
Of the Three The Ones With The Highest Net Net Value Came Out The OVER ALL WINNER! This proves that the Timeless Wisdom of Benjamin Graham is Still True in Modern Day Singapore and anywhere on earth!
All Hail To “The Relentless Pursuit of Value”!
MRCB is now a mispriced Stock. With Over Rm12 Billions Job in hand the Market has underpriced its Value. Mrcb is also a misplaced Share among penny stocks at less than Rm1.00. Because the Market has overlooked Its True Value. Above all MRCB is an ongoing Work of Value Creation.
See Calvin's comment to Fellow MRCB Forumers
Today Mrcb share price broke Rm1.00 to close at 99 sen. UEMS also broke Rm1.00 barrier as well aas many others touching new lows
The entire leadership look weak due to uncertainty of the coming Election.
However, there are 2 things we must keep in mind
1) NO MATTER WHAT - A STOCK HAS AN INTRINSIC VALUE OF ITS OWN. AND AS PRICE GETS CHEAPER BY THE DAY ITS VALUE BECOMES EVEN MORE ATTRACTIVE
The Question therefore revolves around this
What if after buying price still go down lower?
Then how?
Calvin thinks if you are short term traders playing contra, then better be careful.
If you can buy & hold longer term. And dare to average down slowly as prices get cheaper you should emerge Ok.
Let Calvin illustrate
Last time I started buying Pm Corp at 15 sen because Pm Corp was almost debt free with Net Cash of 18 Sen. . Then Pm Corp dropped to 13 sen and I bought more. I even told my Johor Buddies to buy Pm Corp at 13 sen. And then Pm Corp dropped to 12 sen. We bought more
Then it dropped to 10 sen due to PNB selling. PNB incessant selling caused Pm Corp to crash below the 10 sen barrier to a new low of 9 sen.
At 9 sen very few dare to buy. Too much fear & uncertainly.
The only thing certain then was Pm Corp's Balance Sheet. It showed an unmistakable 18 SEN CASH POSITION.
So by not looking at what others are selling in fear and panic I bought even more Pm Corp at 9 sen. Only few followed Calvin at 9 sen.
Then to my horror rumour spread that Pm Corp might go bankrupt as price crashed to the historical all time low of 7.5 sen.
Everyone was bleeding with losses. Blood was everywhere.
Pm Corp t 7.5 sen seemed surreal.
But Calvin bought Pm Corp at the very bottom of 7.5 Sen
And while market was down we hold tight tight.
Then one day Pm Corp kaboomed to 37 sen
SO Those who bought from 15 sen to 13 sen made more than 100%
But for those who dared to buy when there was blood on the street made from 200% to 400%!
Of course it is easier said than done.
Our human nature of fear gets in the way notwithstanding our minds told us that Pm Corp was cheap at 9 sen to the low of 7.5 sen
SO IT IS NOW
OUR MINDS TELL US THAT
BANK RAKYAT COST OF ENTRY WAS ABOVE RM1.20
INSIDERS/DIRECTORS ESOS WERE RM.30 & RM1.07 and they re still holding firm all shares allotted.
RI was oversubscribed by extra 7.3%
And the knowledge that MRCB already secured unbill sales of over Rm5.2 Billions
Assets to be sold over Rm1 billions like Kia Peng Land, Menra Celcom & Ascott Hotel
Good coming news of EDL TOLL COMPENSATION
PDP for HSR Jv with Gamuda for Rm30 Billions to be announced for Packge A. After that another Rm30 Billions for package B.
And the ultimate Job Award for Bandar Malaysia of which Mrcb stands a good chance as it is expert in TOD
OF COURSE ALL THESE AND MORE WE KNOW (THEY ARE ALL FACTS WHICH COULD BE PROVEN ONE BY ONE)
2) NOW THE PROBLEM IS THIS
OTHERS ARE SELLING IN FEAR AS PRICE GETS WEAKER & NAYSAYERS ARE SPREADING EVEN MORE FEARS.
SHOULD WE FEAR THEIR FEARS?
OR SHOULD WE KEEP OUR HEAD HIGH AND FOCUS ON VALUE?
ON REASON? AS OPPOSED TO HUMAN FEELINGS WHICH ARE FLAWED?
TELL YOU WHAT?
THOSE WHO FEARED PLEASE STAY ASIDE AND KEEP QUIETLY WATCHING
FOR THOSE WHO KNOW AND FEAR (BUT STILL BUY IN SPITE OF BEING FEARFUL)
JUST BUY AND ADD LITTLE BIT BY BIT AS PRICE GETS WEAKER
LET TIME UNFOLD ALL THE NEWS WHICH WE ALREADY KNOW FOR SURE
ONLY TIME WILL PROVE US RIGHT.
Warm Regards
Calvin
calvintaneng
PRİCE İS DETERMİNED BY MARKET FÖRCES SHORT TERM
LONGER TERM VALUE TAKES OVER AND İNTRİNSİC VALUE İS REVEALED.
İNTRİNSİC VALUE OF MRCB?
GO AND DİG OUT THE HİDDEN GEM!!!
2018-03-23 09:49