Posted by Icon8888 > 2019-07-16 20:42 | Report Abuse

Share price is mostly driven by earning

Uncle Koon original formula : buy stocks that next year earning is expected to be higher than this year earning

It is the best, try it out

Posted by Icon8888 > 2019-07-16 20:43 | Report Abuse

Don't believe in Asset play

Will die standing

Ask calvintaneng

Posted by Sslee > 2019-07-16 20:51 | Report Abuse

Dear all,
Insas is not your typical NTA (land and properties) play it is both assets value (liquid assets) and earning play.
EPS based on latest NOSH - 693,333,000 for the last 10 years: sen. CAGR
13.06 26.09 11.16 13.14 23.14 8.95 1.82 14.86 7.69 7.49 6.37%

Thank you

Posted by Patrick13 > 2019-07-16 21:05 | Report Abuse

Using NCAV formula, current assets minus total liabilities = 1.36 per share
I agree that this is almost risk-free asset play
But it doesnt mean it will payoff good return
The profit trend is not consistent in the past years plus low ROE and lower dividend yield.

Posted by Icon8888 > 2019-07-16 21:10 | Report Abuse

When in Rome do as the Romans

People like earnings play, you talk Asset play

Of course share price won't move lah

Posted by Icon8888 > 2019-07-16 21:13 | Report Abuse

You slot in a one liner to claim insas is an earning play

Then you spent 99.9999999999999999999999999999% of your article to talk Assets play

Who would be convinced it is an earning play ?

Posted by stockraider > 2019-07-16 21:13 | Report Abuse

After reading Sslee deep analysis, Raider became more & more confident on this insas prospect loh...!!

Insas not only score very well in NTA play, it score well on hidden reserve, Strong Balance Sheet with huge cash holding, Strong earnings, Good cashflow and pays a reasonable good dividend about 3% pa loh..!!

I believe a catalyst will trigger and a sharp upward surge in share price soon, as a result of rerating of insas somewhere around now to February 2020 mah...!!

U will get good hint on this when u attend Insas coming AGM in either October or November mah...!!

The long term investors like raider & sslee should be very comfortable investing in this type of stock loh...!!

Correctloh long term insas, is a weighing machine , its performance will be even much better than right now loh..!!

U need to allow time for market to discover this hidden gem in the near future loh...!!

Patience is very important, if u embarked into this margin of safety defensive investment loh...!!

It is highly lucrative approach to get in big, with very little risk loh...!!

Posted by Icon8888 > 2019-07-16 21:19 | Report Abuse

Focus on earning growth

KYY original formula

Don't be distracted

Posted by Sslee > 2019-07-16 21:22 | Report Abuse

Hahahaha
deMusangking, over to you tell me why you invest in JAKS had you look into JAKS balance sheet?
Posted by deMusangking > Jul 16, 2019 12:12 PM | Report Abuse
this is the message received from heaven, to be conveyed to @ Sslee n raider!
day 1: 1 insas can buy 1 jaks
day 2: 2 insas can buy 1 jaks
day 3: 3 insas can buy 1 jaks
day 4: 4 insas can buy 1 jaks
Your day 1 already did not materialize.
Pity if you end up like qqq3 loss his bet on Gadang and had to cut his kuku bird, no more ahmoing for you again

Posted by Sslee > 2019-07-16 21:28 | Report Abuse

Dear Icon8888,
Agreed: Focus on earning growth
KYY original formula
Don't be distracted.
But also need to look at Balance Sheet otherwise will end like JAKS and SENDAI.

Thank you

Posted by stockraider > 2019-07-16 21:28 | Report Abuse

KYY formula is short term speculative play loh...!!

It does not provide u an anchor of margin of safety for u to bet very big on a single stock investment like insas loh...!!

U look at all the KYY stocks, ask yourself, which one, sustained base on test of time, the answer is none loh....!!

I think sslee way, has improved the investment odds alot mah....!!

Posted by Icon8888 > Jul 16, 2019 9:19 PM | Report Abuse

Focus on earning growth

KYY original formula

Don't be distracted

Posted by shpg22 > 2019-07-16 21:30 | Report Abuse

Stock price always about earning and FCF. Not NTA or pile of cash that only director can enjoy. Unless they don't mind distribute it out as dividend then different story.

Posted by stockraider > 2019-07-16 21:31 | Report Abuse

The key of stock like insas moving up...u need to ask what is the kicker or catalyst for insas....the answer already found & it is coming very soon loh....!!

Posted by Negan > Jul 16, 2019 9:28 PM | Report Abuse

Both SsLee and KCChong are intelligent seniors! But i guess, if you only look at one angle, you missout on what makes stocks go up! Anyway, in bursa, one must open the eyes to know why stocks move! Not continue to be hard headed and stick to unworkable formula! Just a friendly advise! Anyway, i really enjoy SsLee articles!

Posted by stockraider > 2019-07-16 21:35 | Report Abuse

Although i agree, but do not completely totally on earnings loh...!!
U new a package a combination to ensure the stock growth & appreciation is healthy mah...!

Posted by shpg22 > Jul 16, 2019 9:30 PM | Report Abuse

Stock price always about earning and FCF. Not NTA or pile of cash that only director can enjoy. Unless they don't mind distribute it out as dividend then different story.

Posted by pputeh > 2019-07-16 21:41 | Report Abuse

Similar problem with TA. All these co. don't look after shareholders. They are miserable when it comes to paying div to shareholders. They perceive the co. belongs to their grandfathers and accumulate cash and the balance sheet looks great!. This puts off most investors. Incidentally, has the writer accumulated enough of Insas shares and hopes the man in the street will take the bait for him to exit.

Posted by Icon8888 > 2019-07-16 21:44 | Report Abuse

KYY formula not wrong

But he himself mess up the implementation Loh


Posted by stockraider > Jul 16, 2019 9:28 PM | Report Abuse

U look at all the KYY stocks, ask yourself, which one, sustained base on test of time, the answer is none loh....!!

I think sslee way, has improved the investment odds alot mah....!!

Posted by stockraider > 2019-07-16 21:47 | Report Abuse

Ask yourself loh...IF TA does not have this weaknesses or problem like u said, do u think TA will trade at such a huge discount leh ??

Ask yourself, what it takes for TA to correct the current weaknesses or problem mah ??...if u find soon...u already have identified the kicker or catalyst mah.....!

Posted by pputeh > Jul 16, 2019 9:41 PM | Report Abuse

Similar problem with TA. All these co. don't look after shareholders. They are miserable when it comes to paying div to shareholders. They perceive the co. belongs to their grandfathers and accumulate cash and the balance sheet looks great!. This puts off most investors. Incidentally, has the writer accumulated enough of Insas shares and hopes the man in the street will take the bait for him to exit.

Posted by stockraider > 2019-07-16 21:50 | Report Abuse

I m not saying KYY wrong loh....!!

KYY his using guerilla warfare loh....!!

U cannot fight a huge conventional war, using his method, without high risk of getting caught loh....!!

Sslee method are sustained defensive investment strategy loh...!!

Posted by Icon8888 > Jul 16, 2019 9:44 PM | Report Abuse

KYY formula not wrong

But he himself mess up the implementation Loh


Posted by stockraider > Jul 16, 2019 9:28 PM | Report Abuse

U look at all the KYY stocks, ask yourself, which one, sustained base on test of time, the answer is none loh....!!

I think sslee way, has improved the investment odds alot mah....!!

Posted by Icon8888 > 2019-07-16 21:56 | Report Abuse

Come raiders let's punt some armada

Drag your sslee with you

Posted by stockraider > 2019-07-16 22:00 | Report Abuse

I don punt armada, i position big in armada...using the same principle of margin of safety like how i invest in insas also loh...!!

Also i m riding on big wave of turnaround on this battered stock loh..!!

I m expecting more than 100% return loh...!!

Posted by Icon8888 > Jul 16, 2019 9:56 PM | Report Abuse

Come raiders let's punt some armada

Drag your sslee with you

Posted by Icon8888 > 2019-07-16 22:04 | Report Abuse

Ok ok don't be so worked up

Punt is just a fun language I use

Posted by Icon8888 > 2019-07-16 22:04 | Report Abuse

You can call it investment , trading whatever

Posted by Icon8888 > 2019-07-16 22:05 | Report Abuse

As Long as can make Money

Posted by probability > 2019-07-16 22:16 | Report Abuse

last time there was leno cat who keep screaming CANTEEEEEEEK!!...just like the mad Khatulistiwa in Lionind forum....

but price never move anywhere

hope sslee and raider wont get infected with the same 'paralyzing virus'...causing one to become a broken record

Posted by stockraider > 2019-07-16 22:17 | Report Abuse

What happen to that stupid cat ??

Posted by probability > Jul 16, 2019 10:16 PM | Report Abuse

last time there was leno cat who keep screaming CANTEEEEEEEK!!...just like the mad Khatulistiwa in Lionind forum....

but price never move anywhere

hope sslee and raider wont get infected with the same 'paralyzing virus'...causing one to become a broken record

Posted by beso > 2019-07-16 23:11 | Report Abuse

over the last 10 years, Insas only has traded above RM1 for only a few months in 2014 and a brief period in 2017，stock price has spoken loud & clear，it's a value trap neither a wise investment nor deep value investment，you won't get even half of its nta，market don't price it low for no reason.
those empty handed better don't get burn by this value trap，those stuck in high price may have to consider sell when rebound hit resistance to cut & move on.
how many stocks has gone up over five folds in bursamalaysia over the last ten years, why buy insas，in stock markets hold on with the right & must act fast to cut the wrong.

Posted by Sslee > 2019-07-17 00:34 | Report Abuse

Dear all,
Thank for sharing your view and even your experience that Insas is value trap as price never move anywhere and market don't price it low for no reason hence Mr. Market must always be right.

My question: Mr. Market what mental models or human behaviors at play in buying Inari at RM1.66 when you can use the same capital to buy 2.075 Insas share at 80 cents and hold indirectly 1.90 Inari share and all the cash and cash equivalent and all the other Insas business?

Everyone agreed on the value part and the trap part the question now is how to unlock the value?
https://klse.i3investor.com/blogs/Sslee_blog/198128.jsp
You can find some speculation answers on how the value of Insas could be unlocked from above blog. And as minority shareholder you can do a little bit of shareholder activism, ask questions and request your reasonable demand.

Thank you.

Posted by jellyfish > 2019-07-17 05:22 | Report Abuse

because of the value–trap image, insas is selling so cheap ,i dont mind as i am still collecting

Posted by jellyfish > 2019-07-17 05:26 | Report Abuse

i m keeping for the long term , i have a feeling it will go up most propably begining of 2020

Posted by probability > 2019-07-18 13:09 | Report Abuse

i dont know much about Insas investing philosophy...but i know the best time to sell is when maximum attention is given to this stock...this precious opportunity knocks once in a blue moon

Posted by (S=QR) Philip > 2019-07-18 16:26 | Report Abuse

Examples of value traps for investors who only use NTA as a single metric to buy a stock instead of understanding the business and its competitive advantage:

Company name share value / net worth
1. Parkson Holdings 279 million / 2,113 million
2. AsianPac holdings 140 million / 1,501 million
3. Protasco Bhd 136 million / 334 million
4. Talam Transform 172 million / 380 million
5. Nami holdings 462 million / 1,250 million
6. Sapura Energy 4,893 million / 13,865 million
7. Bumi Armada 1,352 million / 3,346 million
8. INSAS Bhd 551 million / 1,717 million

The first thing to notice is that
a) I spent 5 minutes on the internet to find some very good deals. All seem very undervalued, by simple metrics.
b) The second question you ask your self is all the NTA the same thing? Each business is subtly different, and its assets are classified differently (which surprisingly is valued by the company and friendly valuers, and audited robustly). IT is not an exact science, and judgement call needs to be made by the prospective investor on the INTRINSIC VALUE OF THE ASSET.
c) In case of any incongruity of the intrinsic value, one must rely on cash flow generation and estimation in the years to come instead of relying merely on the accounting numbers of the "net assets", as evidenced from item 6 and item 7, where the value of the assets are valued at 13bilion and 3 billion, however they can't find anybody to buy their assets. If that is the case, what is the REAL INTRINSIC VALUE?
d) For INSAS, if stated value if 551 million, and the gap is 1.7 billion, and this "temporary difference in INTRINSIC VALUE" has been going on for a very long time, one must make a good judgment call and understand the difference between a value trap and undervalued stock to see if the price will rise to meet the difference in the future.
e) Only one true way has been shown to work: a company that uses the minimum amount of debt and produces a good amount of cash flow and earnings will have their share price guaranteed to increase. Not via stated value of the assets (versus real world demand for those assets). This way has been shown to work for a very long time, and why asianpac cannot be valued (in fact ALL property developers) at NTA alone.

Hope you learned something.

>>>>>

What is a Value Trap
A value trap is a stock that appears to be cheap because the stock has been trading at low valuation metrics such as multiples of earnings, cash flow or book value for an extended time period. Such a stock attracts investors who are looking for a bargain because they seem inexpensive relative to historical valuation multiples of the stock or relative to the prevailing overall market multiple. The trap springs when investors buy into the company at low prices and the stock continues to languish or drop further.


BREAKING DOWN Value Trap
Successful in prior years with rising profits and a healthy share price, a company can fall into a situation where it is unable to generate revenue and profit growth due to shifts in competitive dynamics, lack of new products or services, rising production and operating costs, or ineffective management. For the investor who is used to seeing a certain valuation of the stock, a seemingly "cheap" price becomes interesting. However, it becomes a value trap to the investor if no material improvements are made in the company's competitive stance, its ability to innovate, its ability to contain costs, and management by the executives.

As with any investment decision, thorough research and evaluation is recommended before investing in any company that appears cheap on the basis of conventional valuation metrics.

Posted by Sslee > 2019-07-18 18:08 | Report Abuse

Dear Philip,
Quote: b) The second question you ask your self is all the NTA the same thing? Each business is subtly different, and its assets are classified differently (which surprisingly is valued by the company and friendly valuers, and audited robustly). IT is not an exact science, and judgement call needs to be made by the prospective investor on the INTRINSIC VALUE OF THE ASSET, unquote.

All the NTA is different: agreed
1. Capex (PPE) on borrowing money that only increase the top line but bottom line lower than the cost of borrowing is a slow killer, like illicit drug give you the instant high but killing you slowly from the inside,
2. Real estate of properties/land that cannot generates income greater than its maintenance, staffs, utilities, quit rent and etc is a liability to company not asset.

So tell me in INSAS case how you value:
https://klse.i3investor.com/servlets/staticfile/358668.jsp
As at As at 31/03/2019 30/06/2018 RM
Current assets
Property development costs: 10,497,000
Inventories: 12,513,000
Trade receivables: 431,898,000
Amount due from associate companies: 94,468,000
Other receivables, deposits and prepayments: 63,688,000
Financial assets at amortised cost: 2,292,000
Financial assets at fair value through profit or loss: 245,640,000
Tax recoverable: 2,608,000
Deposits with licensed banks and financial institutions: 553,678,000
Cash and bank balances: 114,632,000
Total current assets 1,531,914,000
Note under trade receivable: http://www.bursamalaysia.com/market/listed-companies/company-announcements/6218041 As of 30th June 2019, ICL has outstanding loans portfolio of RM267.455 million which are fully collateralized and unsecured corporate loans RM30.162 million generating interest income to the Group. The interest rate charged by ICL is in accordance with the Moneylending Act, which is not more than 12% p.a.for secured loans and not more than 18% p.a.for unsecured loans

Non-current assets
Property, plant and equipment: 157,249,000
Investment properties: 185,059,000
Financial assets at fair value through other comprehensive income: 22,159,000
Financial assets at amortised cost: 3,077,000
Jointly controlled entity: 22,000
Associate companies: 428,986,000
Intangible assets: 26,058,000 (broking and money lending license)
Deferred tax assets 2,822,000
Total non-current assets: 825,432,000

The segment analysis on the Group’s results for the financial period ended 31th March 2019:
1. Financial services and credit & leasing: After-tax-profit RM 10,551,000 (After paying staffs salary , Overhead and BOD remuneration)
2. Investment holding and trading: After-tax-profit RM (4,567,000)
3. Technology and IT-related manufacturing, trading and services: After-tax-profit RM 54,027,000
4. Retail trading and car rental: After-tax-profit RM 2,224,000
5. Property investment and development: After-tax-profit RM 1,957,000
Total: After-tax-profit RM 64,192,000 out of this share of profits less losses of associate companies is RM 34,215,000
Cash flows from operating activities: Interest received RM 13,859,000
Cash flow from investing activities: Dividend received RM 35,056,000
Note: 1 sen dividend from Inari is about RM 6m to Insas cash inflow.

Am I right to say, I need to sell 2 Insas shares (2x 80 sen) to buy 1 Inari (RM 1.60). I just prefer to hold 2 insas share thus indirectly owned 1.8 Inari share, all the cash and cash equivalent and all the other Insas business rather than holding directly 1 Inari share?

So you make your own conclusion:
Quote: e) Only one true way has been shown to work: a company that uses the minimum amount of debt and produces a good amount of cash flow and earnings will have their share price guaranteed to increase. Not via stated value of the assets (versus real world demand for those assets). This way has been shown to work for a very long time, unquote”

Thank you

Posted by (S=QR) Philip > 2019-07-18 19:43 | Report Abuse

How I value INSAS? At 80 cents I am still not buying a single share of INSAS. Meaning I value INSAS far below your NTA of 1.7 billion.

Why? I can never fire current management 33% ownership who make stupid decisions after 1 good decision in inari to put money into sengenics, vigcash, hohup, omesti, dgsb, fintec etc ( things which not even sslee will buy).

I can never get a ever growing dividend from INSAS ( where is growing earnings and profits future coming from? After you kill golden goose inari from 40% to 20% to 0% transfer out cash into cash burning business line sengenics and vigcash and numoni and tribecar( JV with frauds to transfer money out from public to private hands), where will you get future revenue and earnings? No clarity on future earnings and profit meaning no future growth prospects.

At what stage will I buy INSAS?

1. After change of new management, trigger MIGO to show financial capability, then start selling non performing business units like melium, sengenics and numoni.

2. Use earnings and dividends to grow m&a business, revamp website and operational software, increase team to grow investing and IPO arm.

3. Stop investing in startups and instead target on taking over cash generating profitable business run by well run management seeking a good home for their business.

4. Reduce their revenues and profits from one off sources and increase revenues and earnings from consistent cash flow sources with a huge moat

Posted by (S=QR) Philip > 2019-07-18 20:17 | Report Abuse

Your way of thinking is still very immature. If it were that simple you can buy any of the above "undervalue" share and keep the billions of unrealised value.

The answer to that is the same reason why you would rather buy shares in ICAP fund than the ICAP business itself.

If you hold inari shares you get the dividends directly.

If you hold INSAS shares, you get the possibility of getting inari dividends, and no collective right.

If INSAS management decided to waste that money by giving it to a Mongolian company to start a vigsys business and burn/piss/waste all of the dividend money from inari, there is nothing you can do about it.

REMEMBER, YOU ARE A MINORITY SHAREHOLDER.

EVEN IF YOU DO NOT AFTER WITH THE BUSINESS DECISIONS OF INSAS MANAGEMENT, THERE IS ZERO CHANGES YOU CAN DO TO THEM.

THAT IS WHY INSAS IS VALUED AT 80 CENTS.

Not for whatever reasons you highlighted.

In same vein

If you were put money into ICAP, you would get zero returns, unless tan teng boo decided to do share buybacks or declare dividends.

Your logic is not flawed, but it is incomplete.

YOU REFUSE TO SEE THE FULL PICTURE, BUT ONLY WHAT YOU CHOOSE TO BELIEVE.




>>>>>>>

Am I right to say, I need to sell 2 Insas shares (2x 80 sen) to buy 1 Inari (RM 1.60). I just prefer to hold 2 insas share thus indirectly owned 1.8 Inari share, all the cash and cash equivalent and all the other Insas business rather than holding directly 1 Inari share?

Posted by stockraider > 2019-07-18 21:23 |

Post removed.Why?

Posted by (S=QR) Philip > 2019-07-18 21:37 | Report Abuse

Pchem crash? How many percent down? It's a discount day nothing else.

PIC is still intact, and the "crash" is not backed by any announced results only analysts opinions ( like you).

Company fundamentals is still intact.

You are probably too young to understand the difference between temporary volatility and a permanent deterioration of business fundamentals.

Thank God for idiots like you, otherwise how to make money?

Posted by stockraider > 2019-07-18 21:44 |

Post removed.Why?

Posted by stockraider > 2019-07-18 22:03 | Report Abuse

Future belum mari mah....!!

$$$$$$$$$$$$$ coming loh....!!

Posted by qqq3 > 2019-07-19 10:39 | Report Abuse

Mr Musang got future.

Posted by Sslee > 2019-07-19 18:09 | Report Abuse

Hahahaha
deMusangking, the past is baggage and the future is burden. Recommend you to read: The Power of Now. Live in the present a spiritual journey to find their true and deepest self and reach the ultimate in personal growth and spirituality: the discovery of truth and light.
https://www.amazon.com/Power-Now-Guide-Spiritual-Enlightenment/dp/1577314808

Posted by Sslee > 2019-07-19 18:09 | Report Abuse

Dear all,
https://klse.i3investor.com/blogs/Sslee_blog/215832.jsp
My response to Philip comment

Posted by stockraider > 2019-07-20 12:39 |

Post removed.Why?

Posted by stockraider > 2019-07-20 12:49 | Report Abuse

The way u talk no standard loh...argue proper way mah...!!

Posted by qqq3 > 2019-07-20 13:04 | Report Abuse

margin of safety like buying bonds... get bond rates only.

Posted by qqq3 > 2019-07-20 13:05 | Report Abuse

get bond rates only, that is if u are lucky

Posted by Icon8888 > 2019-07-20 13:05 | Report Abuse

I like margin of safety

But margin of safety based on earning, not margin of safety based on asset play

Posted by stockraider > 2019-07-20 13:06 | Report Abuse

Based on discounted cashflow & Net Present Value....all investment should be converted to bond like return for comparison loh...!!

Posted by qqq3 > Jul 20, 2019 1:04 PM | Report Abuse

margin of safety like buying bonds... get bond rates only.

Posted by stockraider > 2019-07-20 13:09 | Report Abuse

Insas has both margin safety on assets and margin of safety on earnings mah....!!

But it does not have speculative earnings growth like QL loh..!!

Posted by Icon8888 > Jul 20, 2019 1:05 PM | Report Abuse

I like margin of safety

But margin of safety based on earning, not margin of safety based on asset play

Posted by (S=QR) Philip > 2019-07-20 13:26 | Report Abuse

How much is your returns from this investment concept raider? Your are line a college teacher talking daily about efficient market theory and teaching graduate students.

But your real life results do not jive with your margin of safety concept.

Arguing for arguing sake. How much money did you make practising this concept in your stockpicking?

Did you buy more hengyuan at rm18, rm15,rm10,rm8 when your opinion of "margin of safety" of hengyuan at pe10, pe15 was rm35-rm50.

Did you enjoy your returns then?

Posted by stockraider > 2019-07-20 13:27 | Report Abuse

What KC says are valid downside of insas loh...!!

But right here i m not saying an outsider trying to unlock value on insas, but the insider owner trying to maximise value on insas and the consequence he indirectly unlocking value mah....!!

The key to this happen is the expiry of insas warrant in 20-2-2020 loh....!!

They is a high chance mkt will rerate too loh...!!

AS USUAL IF U WANT TO BUYOUT THE COMPANY, U WILL RATHER KEEP SHARE PRICE LOW MAH....THATS WHY THE MINORITY SHAREHOLDER FRUSTRATED LOH...!!

THUS INSAS INVESTOR JUST NEED TO BE PATIENT LOH...!!


KC COMMENT,
Conclusions

Deep value investing is not easy. It requires patience, and a lot of patience. It is not for the faint hearted. Insas has been undervalued for a long time. A catalyst may be required to unlock the value. Fund managers and institutional investors will not be able to endure it as they will be long fired by their investors before value is unlocked due to their temporary under-performance. Most individual investors also have no stomach for it. They will be laughed at by others embarking in this strategy as it does look stupid at times. But if a stock is way undervalued, not only by 10%, 20%, or even 50%, but a much larger discount such as 72% as that of Insas, the probability of success is higher. Of course, nothing is certain in this world. But at least the chance of losing money is very slim as the extreme cheapness and quality assets would have taken care of this. Insas has also been providing satisfactory return over the years, and it is likely continue to do so even if the deep value is not unlocked.

Take care of the downside, let the upside takes care of itself.

What we are afraid of is if the value takes a long time to unlock, value may erode, such as in a business with persistence huge losses, burning cash in its operations, or management embarking on overvalued acquisitions, or squander away the cash it has, failed business ventures, or other shareholder value destroying activities. I my opinion, Insas does not belong to this category. Having different stocks with different return drivers in a diversified portfolio is also a smart strategy in investing.