THE INVESTMENT APPROACH OF CALVIN TAN

DISCOVERING HIDDEN INVESTMENT TREASURE OF VALUE (Sunday lesson from Bible) Calvin Tan Research

calvintaneng
Publish date: Sun, 31 Mar 2019, 09:39 AM
calvintaneng
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Hi Guys,

I have An Investment Approach I which I would like to all.

Hi guys,

Sunday is here again. Past 2 Sunday Investment Lessons from the Bible were 1) Invest where water flows (or where liquidity flows) & 2) Most things are Cyclical Nature in Life

Today we should look at the direct teachings of God

Jesus Christ the Son of the Living God said these

King James Bible (AD 1611) (Matthew 13:44)
Again, the kingdom of heaven is like unto treasure hid in a field; the which when a man hath found, he hideth, and for joy thereof goeth and selleth all that he hath, and buyeth that field.

In more modern English translations

 

Berean Literal Bible

The kingdom of the heavens is like treasure having been hidden in the field, which a man having found, hid. And for joy over it, he goes and he sells all that he has, and buys that field.

 

Contemporary English Version

The kingdom of heaven is like what happens when someone finds a treasure hidden in a field and buries it again. Such a person is happy and goes and sells everything in order to buy that field. 

 

Weymouth New Testament

"The Kingdom of the Heavens is like treasure buried in the open country, which a man finds, but buries again, and, in his joy about it, goes and sells all he has and buys that piece of ground.

 

Young's Literal Translation

'Again, the reign of the heavens is like to treasure hid in the field, which a man having found did hide, and from his joy goeth, and all, as much as he hath, he selleth, and buyeth that field.

 

Calvin comments:

Jesus said, Again, the kingdom of heaven is like unto treasure hid in a field;

1) KINGDOM OF HEAVEN IS LIKE A TREASURE

2) THE TREASURE IS A HIDDEN TREASURE IN A FIELD

3) THIS TREASURE CAN BE DISCOVERED which a man having found did hide,

4) AND TO GET LEGAL OWNERSHIP OF THE TREASURE HE HAS TO SELL WHAT HE HAS IN ORDER TO BUY THAT FIELD THAT ENTITLES HIM TO LEGAL OWNERSHIP OF THE HID TREASURE in his joy about it, goes and sells all he has and buys that piece of ground.

THERE ARE 2 PARTS TO THIS MESSAGE

PART ONE:

THE KINGDOM OF HEAVEN

THE KINGDOM OF HEAVEN IS LIKE A HIDDEN TREASURE.

THAT TREASURE IS ETERNAL LIFE

AND THE FIELD REPRESENTS JESUS CHRIST

TO RECEIVE ETERNAL LIFE  WE MUST FIRST  RECEIVE JESUS CHRIST.

11 And this is the record, that God hath given to us eternal life, and this life is in his Son.

12 He that hath the Son hath life; and he that hath not the Son of God hath not life (1 jOHN 5:11 & 12)

 

PART TWO

In the natural world there are 2 groups of people

1) THE HUNTER GATHERER.

THIS MAN GOES HUNTING FOR WILD ANIMALS, BIRDS OR FISHES

HE GATHERS JUNGLE PRODUCE AND WILD FRUITS OR ROOTS

2) THE FARMER & HERDSMAN

HE DOMESTICATES AND REARS COWS, GOATS OR CHICKEN. HE ALSO GROWS FOOD CROPS LIKE RICE, WHEAT OR POTATOES AND CASH CROPS LIKE COTTON, PALM OIL OR RUBBER.

NOW FOREIGN TO THESE TWO IS THE "TREASURE HUNTER"

HE DOES NOT HUNT FOR LIVE THINGS. HE LOOKS FOR DEAD & BURIED THINGS

SO THERE IS A TYPE OF INVESTING UNKNOWN TO DAY TRADERS (THE HUNTER & GATHERER) OR THE LONG TERM INVESTOR (THOSE WHO BUY NESTLE OR PUBLIC BANK)

THIS MAN LOOKS FOR HIDDEN TREASURE!!!

AND AFTER HAVING DISCOVERED OR UNCOVERED IT HE SELLS HIS OTHER LESS PROMISING STUFF (HE SELLS ALL THAT HE HAS) AND BUYS THAT STOCK THAT OWNS THE TREASURE!!

THIS KIND OF INVESTING IS NOT FOR EVERYONE.

WARREN BUFFET INVESTS LIKE A FARMER/HERDSMAN

PETER LYNCH INVESTS LIKE A HUNTER/GATHERER

ONLY ONE PERSON QUALIFIES AS A SEEKER OF "HIDDEN TREASURE"  HIS NAME IS WALTER SCHLOSS!!

LET'S SEE

The 16 factors for investing success as stated by Walter Schloss:

 
  1. Price is the most important factor to use in relation to value.
  2.  
  3. Try to establish the value of the company. Remember that a share of stock represents a part of a business and is not just a piece of paper.
  4.  
  5. Use book value as a starting point to try and establish the value of the enterprise. Be sure that debt does not equal 100% of the equity.
  6. Have patience. Stocks don't go up immediately.
  7.  
  8. Don't buy on tips or for a quick move. Let the professionals do that if they can. Don't sell on bad news.
  9.  
  10. Don't be afraid to be a loner but be sure that you are correct in your judgment. You can't be 100% certain but try to look for weaknesses in your thinking. Buy on a scale and sell on a scale up.
  11.  
  12. Have the courage of your convictions once you have made a decision.
  13.  
  14. Have a philosophy of investment and try to follow it. 
  15.  
  16. Don't be in too much of a hurry to sell. If the stock reaches a price that you think is a fair one, then you can sell but often because a stock goes up, say 50%, people say sell it and button up your profit. Before selling try to reevaluate the company again and see where the stock sells in relation to its book value. Be aware of the level of the stock market. Are yields low and P/E ratios high? 
 
  1. When buying a stock, I find it helpful to buy near the low of the past few years. A stock may go as high as 125 and then decline to 60 and you think it's attractive. Three years before the stock sold at 20 which shows that there is some vulnerability in it.
  2.  
  3. Try to buy assets at a discount rather than buying earnings. Earnings can change dramatically in a short time. Usually, assets change slowly. One has to know much more about a company if one buys earnings.
  4.  
  5. Listen to suggestions from people you respect. This doesn't mean you have to accept them. Remember, it's your money and generally, it is harder to keep money than to make it. Once you lose a lot of money it is hard to make it back.
  6. Try not to let your emotions affect your judgment. Fear and greed are probably the worst emotions to have in connection with the purchase and sale of stocks.
  7. Remember the word compounding. For example, if you can make 12% a year and reinvest the money back, you will double your money in six years, taxes excluded. Remember the rule of 72. Your rate of return into 72 will tell you the number of years to double your money.
  1. Prefer stocks over bonds. Bonds will limit your gains and inflation will reduce your purchasing power.
  2. Be careful of leverage. It can go against you. (For related insight, read more about the value in value investing.)

 

BEST REGARDS

Calvin Tan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Discussions
Be the first to like this. Showing 6 of 6 comments

calvintaneng

Try to buy assets at a discount rather than buying earnings. Earnings can change dramatically in a short time. Usually, assets change slowly

2019-03-31 09:52

stockraider

THE WONDER OF SAPE INVESTMENT, IT HAS BOTH BUYING INTO COMING GROWING EARNINGS AND TREASURE & HIDDEN TREASURE TO BE UNEARTHED AT HUGE MARGIN MARGIN OF SAFETY PRICE LOH..!!

LEARN FROM THE AGE OLD WISDOM OF THE BIBLE..IT IS THE GOOD GUIDING PRINCIPLE MAH.....!!

Posted by calvintaneng > Mar 31, 2019 9:52 AM | Report Abuse

Try to buy assets at a discount rather than buying earnings. Earnings can change dramatically in a short time. Usually, assets change slowly

Posted by stockraider > Mar 31, 2019 10:09 AM | Report Abuse X

King James Bible (AD 1611) (Matthew 13:44)
Again, the kingdom of heaven is like unto treasure hid in a field; the which when a man hath found, he hideth, and for joy thereof goeth and selleth all that he hath, and buyeth that field.

Jesus said, Again, the kingdom of heaven is like unto treasure hid in a field;

1) KINGDOM OF HEAVEN IS LIKE A TREASURE

2) THE TREASURE IS A HIDDEN TREASURE IN A FIELD

3) THIS TREASURE CAN BE DISCOVERED which a man having found did hide,

4) AND TO GET LEGAL OWNERSHIP OF THE TREASURE HE HAS TO SELL WHAT HE HAS IN ORDER TO BUY THAT FIELD THAT ENTITLES HIM TO LEGAL OWNERSHIP OF THE HID TREASURE in his joy about it, goes and sells all he has and buys that piece of ground.

In the natural world there are 2 groups of people

1) THE HUNTER GATHERER.

THIS MAN GOES HUNTING FOR WILD ANIMALS, BIRDS OR FISHES

HE GATHERS JUNGLE PRODUCE AND WILD FRUITS OR ROOTS

2) THE FARMER & HERDSMAN

HE DOMESTICATES AND REARS COWS, GOATS OR CHICKEN. HE ALSO GROWS FOOD CROPS LIKE RICE, WHEAT OR POTATOES AND CASH CROPS LIKE COTTON, PALM OIL OR RUBBER.

NOW FOREIGN TO THESE TWO IS THE "TREASURE HUNTER"

HE DOES NOT HUNT FOR LIVE THINGS. HE LOOKS FOR DEAD & BURIED THINGS

SO THERE IS A TYPE OF INVESTING UNKNOWN TO DAY TRADERS (THE HUNTER & GATHERER) OR THE LONG TERM INVESTOR (THOSE WHO BUY NESTLE OR PUBLIC BANK)

THIS MAN LOOKS FOR HIDDEN TREASURE!!!

AND AFTER HAVING DISCOVERED OR UNCOVERED IT HE SELLS HIS OTHER LESS PROMISING STUFF (HE SELLS ALL THAT HE HAS) AND BUYS THAT STOCK THAT OWNS THE TREASURE!!

THIS KIND OF INVESTING IS NOT FOR EVERYONE.

WARREN BUFFET INVESTS LIKE A FARMER/HERDSMAN

PETER LYNCH INVESTS LIKE A HUNTER/GATHERER

ONLY ONE PERSON QUALIFIES AS A SEEKER OF "HIDDEN TREASURE" HIS NAME IS WALTER SCHLOSS!!

LET'S SEE

The 16 factors for investing success as stated by Walter Schloss:

Price is the most important factor to use in relation to value.

Try to establish the value of the company. Remember that a share of stock represents a part of a business and is not just a piece of paper.

Use book value as a starting point to try and establish the value of the enterprise. Be sure that debt does not equal 100% of the equity.
Have patience. Stocks don't go up immediately.

Don't buy on tips or for a quick move. Let the professionals do that if they can. Don't sell on bad news.

Don't be afraid to be a loner but be sure that you are correct in your judgment. You can't be 100% certain but try to look for weaknesses in your thinking. Buy on a scale and sell on a scale up.

Have the courage of your convictions once you have made a decision.

2019-03-31 10:18

calvintaneng

Post removed.Why?

2019-04-01 08:14

3iii

The risk with buying poorly performing companies is the permanent loss of capital, though the price may look cheap.

2019-04-01 08:26

AmateurApprentice

It is a beautiful article but I believe that multidisciplinary assessment is required when valuing a stock.

Reason being that assets are subject to asset impairment testing. This process allowed impairment costs to be charged/reversed based on market conditions, management assessment, value in use (utilization rate) etc. There are risks such as manipulation, assessment being wrong, changed market conditions etc.
This is especially true for asset heavy companies.

These costs can be charged in this reporting period and reversed in the next period, thus impacting the company's earnings and balance sheet. Below's extract from a listed company's annual report:-

"an impairment charge of $13.1 million, representing approximately 2.6% of the book value of vessel assets. This compares to a reversal of previous impairment charges of $8.4m during the half year ended 31 December 2017."

What are your thought on this ?

2019-04-01 14:33

calvintaneng

First we must determine the total net net assets minus liabilities equal to the real net value

There is an intrinsic value for everything
If we can find the intrinsic value then we compare its price

Is it priced above or below liquidation value?

If it is then we have a margin of safety

Next is management

Do they put own money in the company?
Do they buy continually?
Or are they selling?
Daiman boss bought and bought until one day he took Daiman private

Now even after we have done all due diligence yet there are crooks in listed companies
Then we must diversify
Some good ones might give us 3 to 4 baggars to make up for those mismanaged ones

Who knows?
Some might even turn out to be 5 or 10 baggars

2019-04-02 01:44

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