kcchongnz , nice experiment and wonderful conclusion. One thing to take note, the quality of NCAV is important. For property counters, the asset is mostly land. If you perform the same on industrial product counters where the NCAV is in equipment and factory, the result would probably be poor.
I am happy to say I own all the 10 Net Net Value Stocks Except For Kuchai. I missed Kuchai. Hope I can get some Kuchai on weakness. For KESM I also bought its related Company in Singapore called Sunright.
1)asset mispricing on property could be seen as very illiquid assest in the future, longer gestation period, unfavorable policy, rising rate and so on. Hard to say that market is always wrong on mispricing.
2) Business mispricing could be due to passive and conservative management, risk exposure, missing earning target due to high expectation, stagnant growth and so.
End of day up to us to observe and evaluate the mispricing is correct, wrong, Or overdone. And take advantage of Mr Market.
I think the above mentioned stocks are no longer candidates for Graham Net2 since prices have rise significantly. Since they are not good earner nor Graham's Net2 candidates, is that means they are not worth investing?
Share Prices Are Not Static. It moves from undervaluation to overvaluation and then back from overvaluation to undervaluation again. This is especially true for cyclical stocks.
For utilities and growth stocks we can ride on them as long as fundamental is intact.
We must buy below intrinsic value and sell above intrinsic value.
Our Focus Must Then Be On Undervalued Shares overlooked by the General Market.
Posted by solangeAM > Jul 28, 2014 12:56 AM | Report Abuse WTF Graham Net Net my foot. You are talking as if only these few counters selected by you have gone up, take a look at the whole market will yea, can't you see ALL the counters have gone up?
1)Did anyone say that only these few counters have gone up? 2)"All the counters have gone up"? You sure? I don't think I can see it. 3)Which period you are referring to that "All the stocks have gone up"? 4) Give me the period you are referring to and do you want me to show you some stocks have gone down during this period? 5)How is the performance of the broad market for the period you are referring to? Please substantiate. 6)Can you show us your portfolio of stocks which "have all gone up"? Can substantiate if you have posted somewhere before and show evidence that they "have all gone up". 7) Can you compare your "stocks that all have gone up" with the broad market? Surely you need a reference bench mark, don't you?
I am sure you can substantiate your statement above.
Posted by solangeAM > Jul 28, 2014 01:46 PM | Report Abuse I have invested by using the ears and my chances of hitting the same return as you have been more or less the same, meaning your Graham's approach return is more or less the same as my ears' return as such yours and mine returns should be due to excess liquidity in the market and nothing more
Ok, ok, ok, great investing strategy you have; investing using ears. Congratulations.
But have you given us your guidance to my questions above so that we can learn from you? Anyone of them?
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Posted by stockoperator > 2014-07-23 15:29 | Report Abuse
Can't say i don't agree as figures speak louder.
Have to be selective though. KC, i keep on thinking of Keck Seng as to be one of the major net asset play every time you mentioned net asset play.
Can offer some opinion?