Posted by calvintaneng > 2019-03-31 09:52 | Report Abuse

Try to buy assets at a discount rather than buying earnings. Earnings can change dramatically in a short time. Usually, assets change slowly

Posted by stockraider > 2019-03-31 10:18 | Report Abuse

THE WONDER OF SAPE INVESTMENT, IT HAS BOTH BUYING INTO COMING GROWING EARNINGS AND TREASURE & HIDDEN TREASURE TO BE UNEARTHED AT HUGE MARGIN MARGIN OF SAFETY PRICE LOH..!!

LEARN FROM THE AGE OLD WISDOM OF THE BIBLE..IT IS THE GOOD GUIDING PRINCIPLE MAH.....!!

Posted by calvintaneng > Mar 31, 2019 9:52 AM | Report Abuse

Try to buy assets at a discount rather than buying earnings. Earnings can change dramatically in a short time. Usually, assets change slowly

Posted by stockraider > Mar 31, 2019 10:09 AM | Report Abuse X

King James Bible (AD 1611) (Matthew 13:44)
Again, the kingdom of heaven is like unto treasure hid in a field; the which when a man hath found, he hideth, and for joy thereof goeth and selleth all that he hath, and buyeth that field.

Jesus said, Again, the kingdom of heaven is like unto treasure hid in a field;

1) KINGDOM OF HEAVEN IS LIKE A TREASURE

2) THE TREASURE IS A HIDDEN TREASURE IN A FIELD

3) THIS TREASURE CAN BE DISCOVERED which a man having found did hide,

4) AND TO GET LEGAL OWNERSHIP OF THE TREASURE HE HAS TO SELL WHAT HE HAS IN ORDER TO BUY THAT FIELD THAT ENTITLES HIM TO LEGAL OWNERSHIP OF THE HID TREASURE in his joy about it, goes and sells all he has and buys that piece of ground.

In the natural world there are 2 groups of people

1) THE HUNTER GATHERER.

THIS MAN GOES HUNTING FOR WILD ANIMALS, BIRDS OR FISHES

HE GATHERS JUNGLE PRODUCE AND WILD FRUITS OR ROOTS

2) THE FARMER & HERDSMAN

HE DOMESTICATES AND REARS COWS, GOATS OR CHICKEN. HE ALSO GROWS FOOD CROPS LIKE RICE, WHEAT OR POTATOES AND CASH CROPS LIKE COTTON, PALM OIL OR RUBBER.

NOW FOREIGN TO THESE TWO IS THE "TREASURE HUNTER"

HE DOES NOT HUNT FOR LIVE THINGS. HE LOOKS FOR DEAD & BURIED THINGS

SO THERE IS A TYPE OF INVESTING UNKNOWN TO DAY TRADERS (THE HUNTER & GATHERER) OR THE LONG TERM INVESTOR (THOSE WHO BUY NESTLE OR PUBLIC BANK)

THIS MAN LOOKS FOR HIDDEN TREASURE!!!

AND AFTER HAVING DISCOVERED OR UNCOVERED IT HE SELLS HIS OTHER LESS PROMISING STUFF (HE SELLS ALL THAT HE HAS) AND BUYS THAT STOCK THAT OWNS THE TREASURE!!

THIS KIND OF INVESTING IS NOT FOR EVERYONE.

WARREN BUFFET INVESTS LIKE A FARMER/HERDSMAN

PETER LYNCH INVESTS LIKE A HUNTER/GATHERER

ONLY ONE PERSON QUALIFIES AS A SEEKER OF "HIDDEN TREASURE" HIS NAME IS WALTER SCHLOSS!!

LET'S SEE

The 16 factors for investing success as stated by Walter Schloss:

Price is the most important factor to use in relation to value.

Try to establish the value of the company. Remember that a share of stock represents a part of a business and is not just a piece of paper.

Use book value as a starting point to try and establish the value of the enterprise. Be sure that debt does not equal 100% of the equity.
Have patience. Stocks don't go up immediately.

Don't buy on tips or for a quick move. Let the professionals do that if they can. Don't sell on bad news.

Don't be afraid to be a loner but be sure that you are correct in your judgment. You can't be 100% certain but try to look for weaknesses in your thinking. Buy on a scale and sell on a scale up.

Have the courage of your convictions once you have made a decision.

Posted by calvintaneng > 2019-04-01 08:14 |

Post removed.Why?

Posted by 3iii > 2019-04-01 08:26 | Report Abuse

The risk with buying poorly performing companies is the permanent loss of capital, though the price may look cheap.

Posted by AmateurApprentice > 2019-04-01 14:33 | Report Abuse

It is a beautiful article but I believe that multidisciplinary assessment is required when valuing a stock.

Reason being that assets are subject to asset impairment testing. This process allowed impairment costs to be charged/reversed based on market conditions, management assessment, value in use (utilization rate) etc. There are risks such as manipulation, assessment being wrong, changed market conditions etc.
This is especially true for asset heavy companies.

These costs can be charged in this reporting period and reversed in the next period, thus impacting the company's earnings and balance sheet. Below's extract from a listed company's annual report:-

"an impairment charge of $13.1 million, representing approximately 2.6% of the book value of vessel assets. This compares to a reversal of previous impairment charges of $8.4m during the half year ended 31 December 2017."

What are your thought on this ?

Posted by calvintaneng > 2019-04-02 01:44 | Report Abuse

First we must determine the total net net assets minus liabilities equal to the real net value

There is an intrinsic value for everything
If we can find the intrinsic value then we compare its price

Is it priced above or below liquidation value?

If it is then we have a margin of safety

Next is management

Do they put own money in the company?
Do they buy continually?
Or are they selling?
Daiman boss bought and bought until one day he took Daiman private

Now even after we have done all due diligence yet there are crooks in listed companies
Then we must diversify
Some good ones might give us 3 to 4 baggars to make up for those mismanaged ones

Who knows?
Some might even turn out to be 5 or 10 baggars