What's up with the lady photos?

Hi All,
Thanks KC and Mr OTB on the contributions you have given.

My views are as follows:
FA was largely made known by Ben Graham, who bought shares significantly below their intrinsic value (until it creates a margin of safety). He did pretty well in investing during his time. This was, however, cheap investments made regardless of the quality of the company. The flaw for this strategy was that most low quality companies never reached its intrinsic value.
Now, his pupil – Mr Buffet understood that and that took it further. Together with his partners Mr. Munger, they developed a strategy for long term investing. This is where the famous quote of Mr. Buffet comes in “The best time to buy is whenever you have money; and the best time to sell is never.” They worked the magic of compounding interest, even though several of their holdings have way exceeded their intrinsic value.

History has it in stone carved that FA works. Just look at way back even before TA was invented during the time Wall Street was firstly set-up – during the time of the industrial revolution. Investors at that time have prospered using prehistoric FA style alone, for e.g. Mr. Rockerfeller.

More on KC’s elaboration on TA above: “TA looks at price movement of shares and uses it to predict its future movements”. TA is created hugely based on behavioural finance, like how we study plant/ animal movements. It is the same concept.

This is where it gets interesting as to why FA works? Having known that TA uses a lot on behavioural finance to predict human behaviour, we can safely say that a strong company with excellent fundamentals has a higher probability to do well as compared to their competitors (some call this economic moat). Also, the main reason behind it is the company culture and management. Those in the working level would clearly understand this point – it is very hard to change company culture. For example: ask a coffee person – coffee or tea?

I believe the main key difference between FA and TA is the exit strategy. FA users do not exit their investments so easily even though the market is volatile. I believe TA, on the other hand, rides the tide and exit based on some technical indicator. Since there is no capital gains are not taxed in Malaysia, the question boils down to “how much commissions/fees have been paid?”

Also, please note for those purely using TA blindly (without any bit of FA):
People who are/ have been in the investment banking industry clearly knows that any TA/ break out/ break down point can be created through intense marketing especially for the share market (not so much on the futures market).

Thanks received at qychong@gmail.com

qychong@gmail.com; it would be great!

Signed Up! Thankyou sir :)

Clever game!

Hi kcchongnz, thanks a million for all your sharings. I am just wondering if say a share previously bought at a huge discount (years ago) had recently reached or began fluctuating around (and possible above) its intrinsic value.

What would you do, if the company is still profitable with no significant change to the daily business and management?

You are by far the best and kindest ! Thanks a million for sharing

Thanks sifus!

Thanks Mr. Chong and Intelligent Investor