Posted by calvintaneng > 2015-08-13 13:27 | Report Abuse

1) Behind every stock is a business. Selling goods or services. Some businesses are thriving like export stocks caused by fallen ringgit. But people can overpay for these stocks in times of euphoria.

2) Behind every stock is an entity with assets. The sum total of all assets minus the total liabilities equal net net.

What is the net asset per share?

Ben Graham advocate paying only 70 cents for every dollar of asset. The 30% discount is your margin of safety.

3) Behind every price movement there is a reason

a) Due to change of fortune. Export stocks benefit from weak ringgit.
b) Due to sars and aids. Rubber glove stocks in demand
c) Due to unlocking of value. Company dispose assets and return cash windfall.
d) Due to M&A. A take over by a more efficient company who offers a higher price.
e) Due to syndicated "Push" factor engineered to con the masses. Ha! This one be careful lah!

If you are not sure, better go and study first.

There is no short cut and no free lunch.

You have to work for it by your own due hard work and diligence. Or else better put your money in the bank.

And then?

Go join www.mindreality.com

Life is at its very best!

Invest in Knowledge!

Knowledge of centuries compacted in over 300 articles. Worth its value in Gold.

Yes. Give time for learning, give thanks for happiness, give life for love and give gold for wisdom - from www.mindreality.com

Posted by contemplator > 2015-08-13 14:22 | Report Abuse

Hi Mr Calvin,
Thanks for your view,

1) Behind every stock is a business. Selling goods or services. Some businesses are thriving like export stocks caused by fallen ringgit. But people can overpay for these stocks in times of euphoria.
-- I totally agree with you. Value investor is a contrarian.

2) Besides 33% discount from NAV or Net tangible assets, thought should be given to their ROE and gearing condition.

3) Microeconomics of important but i don't think value investor need to follow closely, instead should follow the business closely (quarterly reports, company announcements etc.)

Just my humble view. Thank you.

Posted by contemplator > 2015-08-13 14:24 | Report Abuse

Who knows how to buy the Vanguard's in US from Malaysia or Singapore please kindly enlighten me here. :)

Posted by Equityengineer > 2015-08-13 16:41 | Report Abuse

CMC market Singapore , which is CFD trading , I am using that to buy ETF ... CFD need to pay holding costs daily.