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…

Inflation Rate: Trust the Computation of Bank Negara Malaysia?

INFLATION RATE computation by Bank Negara Malaysia is done on an overall manner for a COUNTRY, while each one of us on INDIVIDUAL level, will still experience different inflation rate. YES, we can trust Bank Negara Malaysia computation of inflation rate as it is done based on basket of goods changes in price for a COUNTRY.…

Inflation Rate: The Construction of Price Index by Authority

OUR central banks have their ways of computing the inflation rate. Can we just pluck-and-use the numbers? Following our article on Inflation Rate, you would now know what is inflation rate and why it matters to investors. But still, the question lingers, “how did the central banks (including Bank Negara Malaysia) compute their inflation rate?…

What is Inflation Rate?

“Perception is real, even when it is not reality” ~ Edward de Bono Inflation refers to a sustained rise in the overall level of prices in an economy. Economists use various price indices to measure the overall price level, also called the aggregate price level. The inflation Rate is the percentage change in a price index—that is, the…

Return On Equity – Mother of Ratio

Return On Equity (ROE) examines how the capital fund for the business’s asset and how the asset generates return based on your capital. If each $ of asset only generate each $ of earnings, it means the company is just merely cover its cost of capital. This indicate that the company at competitive disadvantages or…

How to spot good investments

It is a common misunderstanding that investments have to be difficult, with complex finance theories and bombastic sounding financial words. In fact, it is a known fact that all these “gimmickry” are intentionally done to make retail investors think that investing is difficult, and it is better to rely on “financial planners” and “fund managers”. Nothing…