Posted by mikejal > 2017-07-12 08:58 | Report Abuse

good article

Posted by Bizfuneng > 2017-07-12 09:14 | Report Abuse

Sifu KC, why Coldeye has moved away from his previous 5 metrics and re-established his strategy on growth as new metric? Is it enhancement from previous ones? What are the changes adpoted with this new metric?

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It seems that ColdEye is no longer emphasizing this metric, and he instead focus on growth as a new metric.

Posted by hissyu2 > 2017-07-12 10:48 | Report Abuse

hi Bizfuneng,

I think we all continue to learn, improve and transform. So does ColdEyes.

Fundamental of investing doesn't change, strategy does. KC is very focus on FA since FA (especially 5 metric above) are very important and should be the basic of investment. Moreover, KC is also doing class to teach more ppl to invest in a safer way, he would definitely teach newbie from the fundamental as well.

Same thing like teacher teaches us 1+1=2, but exam papers you will see 23+3+3 kind of questions. If we don't understand the basic, how do we continue to learn other strategy? :)

Posted by kcchongnz > 2017-07-12 11:42 | Report Abuse

Posted by Bizfuneng > Jul 12, 2017 09:14 AM | Report Abuse
Sifu KC, why Coldeye has moved away from his previous 5 metrics and re-established his strategy on growth as new metric? Is it enhancement from previous ones? What are the changes adpoted with this new metric?

As hissyu2 mentioned,same as all other investors, ColdEye continues to learn, improve and transform. He replaces growth as a metric and discards Book value as he thinks or probably experienced that growth is a better predictor in share future return than book value. I find that is often true too.

But just bear in mind that growth is the future growth, and it is an expectation, rather than a predictable outcome.

Posted by Bizfuneng > 2017-07-12 15:27 | Report Abuse

TQ KC sifu.

Posted by anonboy > 2017-07-12 15:27 | Report Abuse

The P/E of Dufu is less than 8.

Posted by kcchongnz > 2017-07-12 15:49 | Report Abuse

Posted by anonboy > Jul 12, 2017 03:27 PM | Report Abuse
The P/E of Dufu is less than 8.

P/E is too a simplistic valuation metric. There are too many things which can go wrong in this "E".

Look for goodness first, then "cheapness" with better valuation metric, or a combination of metrics.

Posted by godhand > 2017-07-12 15:51 | Report Abuse

p/e is unreliable. look at net cash, gearing and ROE

Posted by 3iii > 2017-07-12 19:41 |

Post removed.Why?

Posted by anonboy > 2017-07-12 22:55 | Report Abuse

The stock is not science, but stocks with a low P/E or P/BV tend to outperform the market. This fact is supported by many academic papers.

Posted by anonboy > 2017-07-12 23:08 | Report Abuse

There is a famous paper on the Cross-Section of Expected Stock Returns written by EUGENE F. FAMA and KENNETH R. FRENCH.

Cross-Section of Expected Stock Returns
http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6261.1992.tb04398.x/full

Posted by kcchongnz > 2017-07-12 23:23 | Report Abuse

Doing quantitative investing by buying a basket of low P/E and P/B stocks may provide you a better return as shown in academic research.

However, we are small retail investors with limited fund. We have to select just a few stocks carefully. Buying these few stocks basing on P/E or P/B is not a good idea, as the "E" and even "B" means many different things.

You may rfer to the following link

https://klse.i3investor.com/blogs/kcchongnz/63417.jsp

By the way, few investors read those lengthy academic research reports.



Posted by anonboy > Jul 12, 2017 10:55 PM | Report Abuse

The stock is not science, but stocks with a low P/E or P/BV tend to outperform the market. This fact is supported by many academic papers.

Posted by anonboy > Jul 12, 2017 11:08 PM | Report Abuse

There is a famous paper on the Cross-Section of Expected Stock Returns written by EUGENE F. FAMA and KENNETH R. FRENCH.

Cross-Section of Expected Stock Returns
http://onlinelibrary.wiley.com/doi/10.1111/j.1540-6261.1992.tb04398.x/full

Posted by popo92 > 2017-07-12 23:27 | Report Abuse

Cold eye has never moved away from this 5 metrics. The growth he finds interesting, in fact is an expectation that one day with the growth, it could match or surpass the scoring on these 5 metrics! These 5 metrics are there to evaluate the cheapness of a stock, but if future growth comes in it certainly add in more value in a company simple as that. You cannot forget this 5 metrics and chase growth alone, it's just not the way you value a company. Especially for savvy investor, these 5 metrics are just too basics and fundamental in their blood not necessary to emphasis.

Posted by anonboy > 2017-07-13 00:07 | Report Abuse

https://www.forbes.com/sites/gurufocus/2012/06/28/warren-buffett-stocks-with-the-lowest-pe-ratios/#1856a60934b1

Posted by gohkimhock > 2017-07-13 00:53 | Report Abuse

ColdEye has actually put growth above NTA. The growth meaning is revenue and profit in uptrend.

Posted by gohkimhock > 2017-07-13 00:54 | Report Abuse

He did not abandon NTA but less significant now bcos NTA is only relevant when companies go bankrupt or winding up.

Posted by kitty9 > 2017-07-13 16:19 | Report Abuse

how i wish coldeye will buy fibon. ;D

Posted by Alex Foo > 2017-07-13 21:03 | Report Abuse

when i saw fong siling sapu jhm, i know that i must follow what he does, not what he did.

i read in his book, he say PE lower the better! what else, NTA must be higher than share price! and ah, must give div!

semua violated. nvm la.

Posted by Alex Foo > 2017-07-13 21:03 | Report Abuse

lucky he no go sapu kgroup and anzo.

Posted by Alex Foo > 2017-07-13 21:09 | Report Abuse

or maybe he bought it much earlier....i late comer sad

Posted by Chia Hock Seng > 2017-09-10 17:18 | Report Abuse

Hi KC and Sifu, can share what available Stock Screener apps for HK/SG, tq