Another Food For Thought article. I tend to agree we so-called Value Investors are actually Value Traders. The true Value Investors are the real INVESTORS. In short, we are a step short of being INVESTORS. We are Value Traders since we hop from stock to stock with intrinsic values and cash out when the expiry dates are due (fully valued). INVESTORS, however, hold on to good shares forever for their dividends.
I think any intelligent investing is good investing. Doesnt matter what name you call it. Intelligent investing comes down to knowing what you are doing.
And ultimately for me, it is always buying something that worth a dollar for 50 cents. Simple as that.
Some people like to hold great companies with big moat and keep it for decades; while others prefer Benjamin Graham cigar butt style. Some prefer to have concentrated 8-10 stocks; while others prefer 15-30 diversified stocks. Investors that hold great companies has less buy/sell in their portfolio; while Ben Graham style has more trades every year. But that is fine. Think a company with high profit margin/low asset turnover (Big moat/low portfolio activity), another company low profit margin/high asset turnover (Cigar butt/High portfolio activities). In the end both companies have the same ROE return on equity.
But at the end of the day, they are all intelligent investing. Buying something for a lot less than what they are worth.
To win in stock market, you need an edge. I think there are 3 edge you can have: 1. Information - You know something others don't. Insider information, you work in that industry etc. 2. Analytical - Your ability to analyse is higher than average investor. Strong qualitative and quantitative skills. 3. Psychological - Your ability to control emotion and other psychological bias such as overconfident, anchoring etc.
1, I think it is very hard. You might have but unsustainable in long term. 2. You can build this if you work really really hard, but not easy too. However I think if you do start reading, you are already at the top 5% of investors. 3. I think this is the main one where most people can have an edge. Why? Because even the most intelligent investors can fck up on this. And easy said than done
If you can sit there and do nothing, better prepared than anyone when crisis comes, avoid overconfident, be skeptical, think independently, avoid many psychological bias etc, you will be sitting in the top tier of intelligent investors group already.
keep an eye on TSRCap. this construction and civil engineering company may be small in size now but has the potential to catch up with similar companies like Mitrajaya. recently concluded rights w/Warrants will improve its capital base for future expansion. Perhaps Icon can share your view on this company. Tx
KoonBee3, 1. COMCORP got more to come. 2. Every night I go through his blog spot ; indeed all the counters Sifu Wrote will never disappoint u. 3. Please read; don't waste time anymore. Market don't wait for u. 4. And do your own homework. 5. I already tell you the few counters ; just buy and keep. Don't stubborn. Sifu very diasapoint with stubborn person. Normally I won't waste time telling. But seems u asking.
sarifah your observation is correct, and interestingly, does not really contradict what I wrote in the article
Comcorp went up could be related to syndicate. But syndicate nowadays are very choosy, like you and me, they like to play stocks with good fundamentals (of course, some still like to play crap stocks).
IN OTHER WORDS, SYNDICATE IS NOW PART OF VALUE TRADERS COMMUNITY.
That is the conclusion I arrived at after many months of observation.
======= SarifahSelinder I con wahai tak payah panjang lebah abt u and me lah.. kan we all tahu who we r? We are all hybrid invest dgn macam macam pattern lah.
Kalau u terror sgt tulis lah about major shareholder yang goring, tulis lah tentang syndicate yang goring.
I tengok u r making the mistake thinking the very high volume the harga melambung ke langit for example Comcorp baru baru ni is due to value trader. I think bukan I think due to syndicate
I con u pergi lah buat research and tulis la about syndicate lah starting wit tu OTB and his group... jgn let me down ya I wait for u. 24/12/2015 09:40
KoonBee3 , I love this quote(lesson of the year) from the Comcorp thread. "Blog: (Icon8888) Comintel - Super Export Play Trading at 3.7x PER. Potential Upside of 170%. Dec 19, 2015 09:30 PM | Report Abuse
People like kk123 totally got no business sense. I recommend such a good stock, instead of zoom in to study carefully, he nag nag nag non stop and keep harping on negative things.
People like OTB and Alpha Trader are like Hawks. I talk a little bit, they already can smell the money, immeidtely dig out all the info to figure out how to make money
That is the difference between a seasoned investor and a dead wood"
As many super investor mentioned before this trick won't work because Malaysia is sentiment based investment center Any political events will make a typical investor loss their pant. Value investor didn't work in sentiment based economy, because many business in Malaysia isn't risk frre or well establish, they could either go nut or turn into gem overnight, ifca, myEG, Top Glove, Inari Amerton, they are all very good sentiment example, the company that go nut is most of the heavily discussed many crude oil counter, are they future proof? Most bank is having the same fate
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....