Value Investing and Finding Value Deals

Professional fund managers may have more extensive resources than individuals, yet they still fall victim to the very behaviours exploited in Value Investing approach, such as overconfidence and extrapolation. In investment, don’t get distract by big dream and big fancy word (IOT, Artificial Intelligence, Smart City/Home, Robotic Manufacturing, Moon Tourism, Bitcoin, Advance Technologies, etc). Instead,…

Speculation

Investment vs Speculation

“An INVESTMENT operation is one which, upon thorough analysis, promises safety of principal and an adequate return.” Graham writes. Speculation operation meets none of these. On the question of Investment vs Speculation, I turn to Graham because he addresses the differences between them on the very first page of his book, The Intelligent Investor. The above…

What is Gross Domestic Product?

(Source: BusinessWorld) GROSS DOMESTIC PRODUCT represents the BROADEST measure of the value of economic activity within a country during a period of time. Gross Domestic Product (GDP) measures the market value of all final goods and services produced within the economy in a given period of time (output definition) or, equivalently, the aggregate income earned by…

Economic Growth & Sustainability – Part 1

Source: TimesHigherEducation.com Economic GROWTH has always been the key focus of many authorities and government. As with the environmental concerns, it is more crucial to consider Economic Growth & SUSTAINABILITY. Economic growth is important because rapid growth in per capita real GDP can transform a poor nation into a wealthy one. Even a small differences…

The Truth on Investors

Truth is that MOST Investors CAN’T see the macro future better than anyone else. Thus trying to FORECAST the future WON’T make them successful investors. There are two classes of forecasters: Those who don’t know, and those who don’t know they don’t know. Most investors act as if they can see the future. It is…

Long Term Runway & Value Investing

For top-down/market-timing investors, Malaysia’s economic growth prospects for the next 12 months remain positive, as shown by Malaysia’s leading index. At the same time, such investors should be mindful of the double- edge impact of a stronger Ringgit and the 2018 general election. Externally, we are remain convinced that China’s economy will perform well and…

Volatility and the Value Investor

As cited above, volatility is the tendency of a security’s market value to fluctuate sharply up or down in the short term. For traders who want to sell off their portfolios at a moment’s notice, volatility and risk are roughly equivalent. But for value investors, who don’t have the urge to liquidate their portfolios any…

Mean reversion- what really drive return

Investing Insight Mean reversion (what really drive return) is the theory suggesting that prices and returns eventually move back toward the mean or average. This mean or average can be the historical average of the price or return, or another relevant average such as the growth in the economy or the average return of an…