Poll

Which best describes your feelings about investing?

"Better safe than sorry."
"Moderation in all things."
"Nothing ventured, nothing gained."

Author Topic: 3i Investing Whispers  (Read 817235 times)

Online iiinvestsmart

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3i Investing Whispers
« on: July 02, 2011, 07:13:31 AM »
History has demonstrated that there are five basic principles that you should follow if you want to be truly successful.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #1 on: July 02, 2011, 07:15:17 AM »
Invest Regularly in the Stock Market

You don‘t need a lot of money to start investing in the stock market. In fact, small amounts, invested regularly, will provide all of the pro-tection you need against the vagaries of the market. Known as ―dollar cost averaging, this principle allows you to purchase more shares of a stock when the price is low (that is, cheap) and fewer shares when it‘s high (expensive). As a result, over the long term you will own more shares at a lower price than if you had invested a single lump sum in that stock.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #2 on: July 02, 2011, 07:17:18 AM »
Reinvest all of Your Profits and Dividends

This principle provides for you to enjoy the ―magic of compounding which means that you earn money on the money you earn. Most of your gains should be ―unrealized (the appreciation in the market value of your portfolio without having to sell to ―realize the gains, known as ―paper gains).

However, if you re-invest your dividend in-come and realized gains, you would double your money in five years with a portfolio that returns just a little less than 15% a year. If you ―take what you make,‖ your portfolio would have to return 20% to do the same.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #3 on: July 02, 2011, 07:20:42 AM »
Invest for the Long Term

―Long-term investing implies that your fortunes are determined by the growth of the companies in which you invest, not simply by the price of the stock. It also means that you don‘t need to be considered about ―timing the market, attempting to gauge if the overall market or a single stock is high or low before making a purchase or sell. Dur-ing periods when the overall stock market is down, in fact, can be ex-cellent opportunities to find under-valued stocks, which will increase your return as the market (and your stocks) rise. Though a ―buy and hold approach to the market does not mean ―never sell, patience is a virtue well worth cultivating in when building a portfolio.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #4 on: July 02, 2011, 07:24:26 AM »
Invest Only in Good Quality Growth Companies

Depending upon the size or maturity of the company, you should look for companies whose ―monotonous excellence produces consistent annual earnings growth of anywhere from 7% to as much as 20% compounded annually. As these companies grow, their share prices will ultimately follow, and your portfolio will reap the returns.

―Total Return (the combination of both capital appreciation and divi-dend yield) is, certainly, the name of the game, but it‘s best to invest in companies whose growth, rather than dividend income, is going to provide the bulk of the return.

But it‘s not enough to simply invest in growing businesses. You should also set high standards of quality for the companies in which you invest.

Companies of quality will outperform their peers, perform better in economic downturns, and/or see their share prices take large tumbles during the occasional stumble.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #5 on: July 02, 2011, 07:27:17 AM »
Diversify Your Portfolio

While the first three are principles that are essential to grow your capital, this ―defensive principle is important as a means of minimiz-ing risk.

Putting all of your eggs in one basket has never been smart, and we look for diversification in both size (risk/return considera-tions) and industry.

Strive to build a portfolio that contain approximately 25% small com-panies, 25% large companies, and the rest in between—divided among a variety of industries. In this way, you can reduce the overall risk in your stock portfolio and have a better chance of reaching your target return.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #6 on: July 02, 2011, 07:31:24 AM »
It‘s best to assume that any price movement that is not related to the company‘s earnings is transient. If the stories—not the numbers—cause the price to move, it won‘t last. What goes up will come down, and what goes down will come up. Only when the sales, pre-tax prof-its or earnings drive the change do you have to be concerned—and then, only if you expect the performance decay to be a major, long-term problem.

Remember also, a sizable segment of Wall Street doesn‘t make its money on the ocean. They make it on the ―ocean motion. Buying or selling, it makes little difference to them what you do. They make their money either way. But it sure makes a difference to you!

Invest Only in Good Quality Growth Companies

Depending upon the size or maturity of the company, you should look for companies whose ―monotonous excellence produces consistent annual earnings growth of anywhere from 7% to as much as 20% compounded annually. As these companies grow, their share prices will ultimately follow, and your portfolio will reap the returns.

―Total Return (the combination of both capital appreciation and divi-dend yield) is, certainly, the name of the game, but it‘s best to invest in companies whose growth, rather than dividend income, is going to provide the bulk of the return.

But it‘s not enough to simply invest in growing businesses. You should also set high standards of quality for the companies in which you invest.

Companies of quality will outperform their peers, perform better in economic downturns, and/or see their share prices take large tumbles during the occasional stumble.

It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #7 on: July 02, 2011, 07:47:09 AM »
Investment Policies (Based on Benjamin Graham)
Summary of Investment Policies

A. INVESTMENT FOR FIXED INCOME:
US Savings Bonds (FDs or Amanah Sahams for Malaysians)

B. INVESTMENT FOR INCOME, MODERATE LONG-TERM APPRECIATION AND PROTECTION AGAINST INFLATION:
(1) INVESTMENT FUNDS bought at reasonable price.
(2) Diversified list of primary common stocks (BLUE CHIPS) bought at reasonable price.

C. INVESTMENT CHIEFLY FOR PROFIT: 4 approaches are open to both the small and the large investors:
(1) Representative common stocks bought when the MARKET level is clearly LOW.
(2) GROWTH STOCKS, when these can be obtained at reasonable prices in relation to actual accomplishment – GROWTH INVESTING.
(3) Purchase of securities selling well BELOW INTRINSIC VALUE – VALUE INVESTING.
(4) Purchase of WELL-SECURED PRIVILEGED SENIOR ISSUES (bonds and preferred shares).
(5) SPECIAL SITUATIONS: Mergers, arbitrages, cash pay-outs.

D. SPECULATION:
(1) Buying stock in new or virtually new ventures (IPOs) .
(2) TRADING in the market.
(3) Purchase of "GROWTH STOCKS" at GENEROUS PRICES.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #8 on: July 02, 2011, 07:48:32 AM »
For DEFENSIVE INVESTORS: Portfolio A & B
(Portfolio A: Cash, FDs, Bonds Portfolio B: Mutual funds, Blue chips)

For ENTERPRISING INVESTORS: Portfolio A & B & C
(Portfolio C: Buy in Low Market, Buy Growth stocks at fair value, Buy value stocks i.e. bargains, High grade bonds and preferred shares, Arbitrages)

For SPECULATORS: Portfolio D
(Should set aside a sum for this separate from their money in investing.)

Investment Policies (Based on Benjamin Graham)
Summary of Investment Policies

A. INVESTMENT FOR FIXED INCOME:
US Savings Bonds (FDs or Amanah Sahams for Malaysians)

B. INVESTMENT FOR INCOME, MODERATE LONG-TERM APPRECIATION AND PROTECTION AGAINST INFLATION:
(1) INVESTMENT FUNDS bought at reasonable price.
(2) Diversified list of primary common stocks (BLUE CHIPS) bought at reasonable price.

C. INVESTMENT CHIEFLY FOR PROFIT: 4 approaches are open to both the small and the large investors:
(1) Representative common stocks bought when the MARKET level is clearly LOW.
(2) GROWTH STOCKS, when these can be obtained at reasonable prices in relation to actual accomplishment – GROWTH INVESTING.
(3) Purchase of securities selling well BELOW INTRINSIC VALUE – VALUE INVESTING.
(4) Purchase of WELL-SECURED PRIVILEGED SENIOR ISSUES (bonds and preferred shares).
(5) SPECIAL SITUATIONS: Mergers, arbitrages, cash pay-outs.

D. SPECULATION:
(1) Buying stock in new or virtually new ventures (IPOs) .
(2) TRADING in the market.
(3) Purchase of "GROWTH STOCKS" at GENEROUS PRICES.

It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #9 on: July 02, 2011, 08:01:26 AM »
May your investing be as rewarding as mine. :-[
 :clap: :hi: :cash: :giggle:


Portfolio value
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online king

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Re: 3i Investing Whispers
« Reply #10 on: July 02, 2011, 08:29:07 AM »
DONT MIND SHARING WITH US WHEN U STARTED INVESTING N HOW MUCH U MADE TODATE?

Online stockraider

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Re: 3i Investing Whispers
« Reply #11 on: July 02, 2011, 11:02:01 AM »
Invest Only in Good Quality Growth Companies

Depending upon the size or maturity of the company, you should look for companies whose ―monotonous excellence produces consistent annual earnings growth of anywhere from 7% to as much as 20% compounded annually. As these companies grow, their share prices will ultimately follow, and your portfolio will reap the returns.

―Total Return (the combination of both capital appreciation and divi-dend yield) is, certainly, the name of the game, but it‘s best to invest in companies whose growth, rather than dividend income, is going to provide the bulk of the return.

But it‘s not enough to simply invest in growing businesses. You should also set high standards of quality for the companies in which you invest.

Companies of quality will outperform their peers, perform better in economic downturns, and/or see their share prices take large tumbles during the occasional stumble.
This point...raider disagree.....loh...! Always invest in huge undervalue company with high margin of safety & low gearing & preferably dividend paying.....this is a sure fire & easy way of investment.

Yes Raider agree that investment Growth company is also profitable if done properly mah !....but it is the 2nd best tech....raider use loh ! Why ?

1) Growth rate are difficult to establish....as the company grow bigger...its grow rate will slow....bcos of sheer size, competition and product life cycle. Alot people(esp analyst) mistakenly superimpose the same past growth rate in the future.!
Bcos this complication....raider think....this method can only be the 2nd best tech in the pecking order of fundamental money  making loh....!

Offline leno

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Re: 3i Investing Whispers
« Reply #12 on: July 02, 2011, 11:10:49 AM »
when there are tons of fruits lying on the floor just waiting for me to pick up .. why the heck i want to risk climbing up the tree.

when there are tons of undervalued companies nowadays .. why the heck i need to waste time cracking my head to value a growth stock.

 :D :D :D

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #13 on: July 02, 2011, 11:52:13 AM »
This point...raider disagree.....loh...! Always invest in huge undervalue company with high margin of safety & low gearing & preferably dividend paying.....this is a sure fire & easy way of investment.

Yes Raider agree that investment Growth company is also profitable if done properly mah !....but it is the 2nd best tech....raider use loh ! Why ?

1) Growth rate are difficult to establish....as the company grow bigger...its grow rate will slow....bcos of sheer size, competition and product life cycle. Alot people(esp analyst) mistakenly superimpose the same past growth rate in the future.!
Bcos this complication....raider think....this method can only be the 2nd best tech in the pecking order of fundamental money  making loh....!

Raider forgot to mention that there r some peculiar ones that grow bigger n bigger n bcomes almost monopoly, thus exponentially has higher growth rates after achieving that status!!!!

those r the big 'baggers'!!!!

 :P
ps. does not apply to all types of industries but a few. (goodwill)......where does that come from? how do u value those? :)
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #14 on: July 02, 2011, 12:09:06 PM »
WHY invest at all, if not because of value.  :)

Therefore, growth investing and value investing are 2 sides of the same coin; they are joined at the hip.  :)

Irrespective whether it is growth or value investing, always select good quality stocks.

I prefer to invest in high quality growth companies, having businesses with durable competitive advantages, bought at fair prices or bargain prices.  :)



Investment Policies (Based on Benjamin Graham)
Summary of Investment Policies

A. INVESTMENT FOR FIXED INCOME:
US Savings Bonds (FDs or Amanah Sahams for Malaysians)

B. INVESTMENT FOR INCOME, MODERATE LONG-TERM APPRECIATION AND PROTECTION AGAINST INFLATION:
(1) INVESTMENT FUNDS bought at reasonable price.
(2) Diversified list of primary common stocks (BLUE CHIPS) bought at reasonable price.

C. INVESTMENT CHIEFLY FOR PROFIT: 4 approaches are open to both the small and the large investors:
(1) Representative common stocks bought when the MARKET level is clearly LOW.
(2) GROWTH STOCKS, when these can be obtained at reasonable prices in relation to actual accomplishment – GROWTH INVESTING.
(3) Purchase of securities selling well BELOW INTRINSIC VALUE – VALUE INVESTING.

(4) Purchase of WELL-SECURED PRIVILEGED SENIOR ISSUES (bonds and preferred shares).
(5) SPECIAL SITUATIONS: Mergers, arbitrages, cash pay-outs.

D. SPECULATION:
(1) Buying stock in new or virtually new ventures (IPOs) .
(2) TRADING in the market.
(3) Purchase of "GROWTH STOCKS" at GENEROUS PRICES.

It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #15 on: July 02, 2011, 12:23:39 PM »
WHY invest at all, if not because of value.  :)

Therefore, growth investing and value investing are 2 sides of the same coin; they are joined at the hip.  :)

Irrespective whether it is growth or value investing, always select good quality stocks.

I prefer to invest in high quality growth companies, having businesses with durable competitive advantages, bought at fair prices or bargain prices.  :)




i pay * prices for good quality stocks!!!!
 :'( :'( :'( :'(

so hav to continuously add throughout my life to average down lor!!!!
 :(

late bloomers......dont despair, u'll hav your day someday!!!!
stay strong!!!!
God bless u all!!!!
 :)
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

Online stockraider

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Re: 3i Investing Whispers
« Reply #16 on: July 02, 2011, 12:23:50 PM »
Raider forgot to mention that there r some peculiar ones that grow bigger n bigger n bcomes almost monopoly, thus exponentially has higher growth rates after achieving that status!!!!

those r the big 'baggers'!!!!

 :P
ps. does not apply to all types of industries but a few. (goodwill)......where does that come from? how do u value those? :)

Raider believe growth  stock also loh  and raider also use mah...! But raider put it as 2nd most favor tech....but raider say not suitable for newbies loh....bcos when u focus growth....u end up gambling....bcos sky is the limit mah...!

Just look at Uncle John....just see how he focus growth....then u know loh....! The newbies will be veri excited loh...!

Stick....to value investment 1st for newbies....then cautiously branch up to growth after learning the robes mah..!

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #17 on: July 02, 2011, 12:45:22 PM »
i pay * prices for good quality stocks!!!!
 :'( :'( :'( :'(

so hav to continuously add throughout my life to average down lor!!!!
 :(

late bloomers......dont despair, u'll hav your day someday!!!!
stay strong!!!!
God bless u all!!!!
 :)

For growth companies, you are betting on its earnings growth potential. 
Certain businesses in certain industries have durable competitive advantages.
You will need to be able to identify these.
Even if you were to overpay (by not too much) to own these good quality growth companies, your investment will still turn out fine over the long term.
Due to their superior business earnings growth, the price you "overpaid" when reviewed retrospectively, 5 or 10 years later, appeared as a small blip in its market price chart.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline rainbow

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Re: 3i Investing Whispers
« Reply #18 on: July 02, 2011, 12:48:32 PM »
For growth companies, you are betting on its earnings growth potential. 
Certain businesses in certain industries have durable competitive advantages.
You will need to be able to identify these.
Even if you were to overpay (by not too much) to own these good quality growth companies, your investment will still turn out fine over the long term.
Due to their superior business earnings growth, the price you "overpaid" when reviewed retrospectively, 5 or 10 years later, appeared as a small blip in its market price chart.

SPOT ON!!! GET ALIVE WITH PPL TAT WE LOVE AND ENJOY LIFE!  8) 8)
Somewhere over the rainbow, skies are blue, and the dreams that you dare to dream really do come true

Online stockraider

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Re: 3i Investing Whispers
« Reply #19 on: July 02, 2011, 12:50:29 PM »
For growth companies, you are betting on its earnings growth potential. 
Certain businesses in certain industries have durable competitive advantages.
You will need to be able to identify these.
Even if you were to overpay (by not too much) to own these good quality growth companies, your investment will still turn out fine over the long term.
Due to their superior business earnings growth, the price you "overpaid" when reviewed retrospectively, 5 or 10 years later, appeared as a small blip in its market price chart.

A bird in hand is better than 2 in the bush...!
Why need to overpay....when u buy something under value by paying Rm 1 price for Rm 2 value leh ?

Yes...u can overpay.....buying into growth....but...then rationally.....u hoping to get the 2 birds in the bush in the future loh...!

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #20 on: July 02, 2011, 12:59:51 PM »
when there are tons of fruits lying on the floor just waiting for me to pick up .. why the heck i want to risk climbing up the tree.

when there are tons of undervalued companies nowadays .. why the heck i need to waste time cracking my head to value a growth stock.

 :D :D :D

Leno,

The most important aspect is to assess the quality of the company.
Often, I wouldn't bother with the valuation of such stocks that do not meet my quality criteria.
Time is better spend searching for high quality companies.

As you are happy with your stock portfolio performance, stay with your strategy of deep value investing.
However, always stay with high quality (preferably, growth) companies.
You may wish to review the relative performances of Hing Yiap and Padini again.

A very cheap stock maybe the most overvalued!!!!!
You would have encountered the above circumstances on numerous occasions.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online stockraider

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Re: 3i Investing Whispers
« Reply #21 on: July 02, 2011, 01:07:48 PM »
A bird in hand is better than 2 in the bush...!
Why need to overpay....when u buy something under value by paying Rm 1 price for Rm 2 value leh ?

Yes...u can overpay.....buying into growth....but...then rationally.....u hoping to get the 2 birds in the bush in the future loh...!

A good example of people miss use of growth will result veri acceptable high valuation...on the pretext of strong growth loh...! Just take Bumi Armada.......IPO......PE 19x....0.33 NTA............at Price Rm 3.15 on the pretext of growth....the analyst and investing public can accept loh...!

But then....Bumi Armada....is already a big company....how much growth leh ? Is it sufficient to catch the 2 birds in the bush leh ?

Yes look for value 1st....! Then growth the supplementary.....some time growth company valuation may drop due to mkt sentiment loh....!

The best....is buy into a value company.....which subsequently transform to growth company loh...! Raider like Leno pick on analabs.....a good example of value to growth loh...!

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #22 on: July 02, 2011, 01:08:52 PM »
Leno,

The most important aspect is to assess the quality of the company.
Often, I wouldn't bother with the valuation of such stocks that do not meet my quality criteria.
Time is better spend searching for high quality companies.

As you are happy with your stock portfolio performance, stay with your strategy of deep value investing.
However, always stay with high quality (preferably, growth) companies.
You may wish to review the relative performances of Hing Yiap and Padini again.

A very cheap stock maybe the most overvalued!!!!!
You would have encountered the above circumstances on numerous occasions.

 :thumbsup: :thumbsup: :thumbsup: :thumbsup:

 :)
ps. and the more u study them the more u discover what a good business really is, thus helps u to identify others that r just starting to show potential(those would still b relatively cheap with high growth potential)

time spent on learnin from the best i guess is better than groping in the dark for hidden gems.......even if u r lucky enough to find them, u might still not b able to value them!!!!

just me dua sen that can b totally wrong!!!!
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #23 on: July 02, 2011, 01:11:37 PM »
A good example of people miss use of growth will result veri acceptable high valuation...on the pretext of strong growth loh...! Just take Bumi Armada.......IPO......PE 19x....0.33 NTA............at Price Rm 3.15 on the pretext of growth....the analyst and investing public can accept loh...!

But then....Bumi Armada....is already a big company....how much growth leh ? Is it sufficient to catch the 2 birds in the bush leh ?

Yes look for value 1st....! Then growth the supplementary.....some time growth company valuation may drop due to mkt sentiment loh....!

The best....is buy into a value company.....which subsequently transform to growth company loh...! Raider like Leno pick on analabs.....a good example of value to growth loh...!

why analabs?

do u know what their core business is?

 ;)
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #24 on: July 02, 2011, 01:13:46 PM »
A bird in hand is better than 2 in the bush...!
Why need to overpay....when u buy something under value by paying Rm 1 price for Rm 2 value leh ?

Yes...u can overpay.....buying into growth....but...then rationally.....u hoping to get the 2 birds in the bush in the future loh...!

You have to be very astute in identifying these good quality growth companies.

Let's assume Company A is a good quality growth company, with a 10 year historical track record and is still a mid-cap company with formidable market potential.

Company A has EPS of 20 sen today.  It's usual PE is 10 (ranging from 5 to 15).

Well, you may wish to buy this company when it is trading at PE of 5.  There are instances in the market when you certainly maybe able to get at this price, eg. 2008.  Value investors love these bargains.

Well, you may also buy this company when it is trading at its fair price, at PE of 10 (paying $2.00 for each share).

Since Company A is able to grow its earnings over time and let us assume that 5 years later, its EPS is 40 sen.  It is most likely you can sell this share for $4.00 based on its fair price of PE of 10.  You do not need to hope to get someone to pay a higher PE to materialise a gain, unlike those companies that are not growing their earnings.  All you need to make a profit is just to sell the stock at fair price.

But why bother selling at all?  Maybe and most probably, 5 years later, its earnings will be 80 sen.  You are actually buying into its earnings growth power or potential.  It is actually a very simple way of investing that requires only 3% of our brain function (quoting Peter Lynch).

Raider, your investing style requires more IQ, EQ and certainly uses more of the brain.  I do notice your brain is heavier than most of ours.  :D :P
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online stockraider

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Re: 3i Investing Whispers
« Reply #25 on: July 02, 2011, 01:19:13 PM »
:thumbsup: :thumbsup: :thumbsup: :thumbsup:

 :)
ps. and the more u study them the more u discover what a good business really is, thus helps u to identify others that r just starting to show potential(those would still b relatively cheap with high growth potential)

time spent on learnin from the best i guess is better than groping in the dark for hidden gems.......even if u r lucky enough to find them, u might still not b able to value them!!!!

just me dua sen that can b totally wrong!!!!

Lets look into Nestle...a top quality company with growth loh...at Rm 48.00.........at this level PE 28x, dividend yield 3%...NTA Rm 2.70....!

Raider ask....where is the margin of safety leh ? What happen growth slowed, interest rate increase and dividend receive reduce leh ? Where is the defensive anchor leh ?
Those....buying is hoping...EPS & DPS will catch up with paying high.........share price loh...! But there is a limit loh...!

Now u compare with analabs....at price Rm 1.69....other than this is a small company, not well known brand........it beat Nestle on all aspect of undervaluation loh....! Got NTA Rm 2.50 PE 5.5x & DPS Rm 0.05....loh....! Small company growth aspect faster so more loh....don forget net cash mah...!


Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #26 on: July 02, 2011, 01:20:06 PM »
:thumbsup: :thumbsup: :thumbsup: :thumbsup:

 :)
ps. and the more u study them the more u discover what a good business really is, thus helps u to identify others that r just starting to show potential(those would still b relatively cheap with high growth potential)

time spent on learnin from the best i guess is better than groping in the dark for hidden gems.......even if u r lucky enough to find them, u might still not b able to value them!!!!

just me dua sen that can b totally wrong!!!!

SS

I routinely scan through the KLSE counters for good quality stocks; good quality growth stocks; good quality value stocks; and others.  You can do this very quickly.

There were usually less than 40 counters that I would be interested in.  And of these, I would need to still narrow them down to less than 5.  

Often, the extra money just goes back into reinvesting into the pre-existing stocks in my portfolio.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online stockraider

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Re: 3i Investing Whispers
« Reply #27 on: July 02, 2011, 01:22:17 PM »
You have to be very astute in identifying these good quality growth companies.

Let's assume Company A is a good quality growth company, with a 10 year historical track record and is still a mid-cap company with formidable market potential.

Company A has EPS of 20 sen today.  It's usual PE is 10 (ranging from 5 to 15).

Well, you may wish to buy this company when it is trading at PE of 5.  There are instances in the market when you certainly maybe able to get at this price, eg. 2008.  Value investors love these bargains.

Well, you may also buy this company when it is trading at its fair price, at PE of 10 (paying $2.00 for each share).

Since Company A is able to grow its earnings over time and let us assume that 5 years later, its EPS is 40 sen.  It is most likely you can sell this share for $4.00 based on its fair price of PE of 10.  You do not need to hope to get someone to pay a higher PE to materialise a gain, unlike those companies that are not growing their earnings.  All you need to make a profit is just to sell the stock at fair price.

But why bother selling at all?  Maybe and most probably, 5 years later, its earnings will be 80 sen.  You are actually buying into its earnings growth power or potential.  It is actually a very simple way of investing that requires only 3% of our brain function (quoting Peter Lynch).

Raider, your investing style requires more IQ, EQ and certainly uses more of the brain.  I do notice your brain is heavier than most of ours.  :D :P


Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #28 on: July 02, 2011, 01:23:02 PM »
Lets look into Nestle...a top quality company with growth loh...at Rm 48.00.........at this level PE 28x, dividend yield 3%...NTA Rm 2.70....!

Raider ask....where is the margin of safety leh ? What happen growth slowed, interest rate increase and dividend receive reduce leh ? Where is the defensive anchor leh ?
Those....buying is hoping...EPS & DPS will catch up with paying high.........share price loh...! But there is a limit loh...!

Now u compare with analabs....at price Rm 1.69....other than this is a small company, not well known brand........it beat Nestle on all aspect of undervaluation loh....! Got NTA Rm 2.50 PE 5.5x & DPS Rm 0.05....loh....! Small company growth aspect faster so more loh....don forget net cash mah...!



Raider,

What is the total return you expect from Analab over the next 5 years?
What is the total return you expect from Nestle over the next 5 years?

It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #29 on: July 02, 2011, 01:30:00 PM »
Raider,

What is the total return you expect from Analab over the next 5 years?
What is the total return you expect from Nestle over the next 5 years?







Over the short term, the stock market is a beauty contest (voting machine).
Over the long term, the stock market is a weighing contest (weighing machine).

Well, over the long term, the stock prices do reflect the fundamentals of the businesses.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline SizeDoesMatter

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Re: 3i Investing Whispers
« Reply #30 on: July 02, 2011, 01:30:36 PM »
Ben Graham was a millionaire, but Warrent Buffett is a Billionaire lor

Ben Graham taught Warrent the important of Safety but Warrent figure out that there's something missing from just "Safety".

Safe and undervalued does sometimes goes down and never back up again.

 :)
~~~

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #31 on: July 02, 2011, 01:32:45 PM »
Lets look into Nestle...a top quality company with growth loh...at Rm 48.00.........at this level PE 28x, dividend yield 3%...NTA Rm 2.70....!

Raider ask....where is the margin of safety leh ? What happen growth slowed, interest rate increase and dividend receive reduce leh ? Where is the defensive anchor leh ?
Those....buying is hoping...EPS & DPS will catch up with paying high.........share price loh...! But there is a limit loh...!

Now u compare with analabs....at price Rm 1.69....other than this is a small company, not well known brand........it beat Nestle on all aspect of undervaluation loh....! Got NTA Rm 2.50 PE 5.5x & DPS Rm 0.05....loh....! Small company growth aspect faster so more loh....don forget net cash mah...!



does Nestlé rings a bell? when u say analabs, a lot of people will b asking........analabs? who? analabs?
-c the defense?

i guess there will b times when growth reduces, interest rates increase, decrease in dividends..........true, unless fundamentals change, i will still continue to add.(mayb can get a bargain, anyways thats what an investor is always looking for.....bargains)

 ;)
ps. if really wanna talk Nestlé i can go on n on n on n on............so much to talk about!!!!
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #32 on: July 02, 2011, 01:36:25 PM »
Ben Graham was a millionaire, but Warrent Buffett is a Billionaire lor

Ben Graham taught Warrent the important of Safety but Warrent figure out that there's something missing from just "Safety".

Safe and undervalued does sometimes goes down and never back up again.

 :)

Actually it is extremely easy to make money in the stock market.
You need to get the education.
With the right philosophy and strategy, your investing will be very safe.
The upside then takes care of itself.
You can safely get a return of 7 or 8% per year in the KLSE over many years.
To aim for higher returns, require a bit more work and diligence.
The greatest enemy is the investor himself.
Rather than taking advantage of Mr. Market, he or she falls folly to it.
You see this in investlah to learn from (and take advantage of) them.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online stockraider

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Re: 3i Investing Whispers
« Reply #33 on: July 02, 2011, 01:38:44 PM »
Raider,

What is the total return you expect from Analab over the next 5 years?
What is the total return you expect from Nestle over the next 5 years?



Raider would not do this projection...loh...bcos this tukang tilik loh...!

Raider just ask lah....Analabs current EPS Rm 0.29.....NTA Rm 2.50....what is its fair value leh ?
 Then Nestle EPS Rm 1.80..Dividend Rm 1.62 what is the fair value leh ?

Yes project 5 yr.....we will always end up arguement.....bcos different assumption loh....like JOHN projection on GSB veri high loh!....raider.....always...look at the current mkt valuation now to do the analysis to see worthwhile....of course there is some allowance for growth also loh...!

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #34 on: July 02, 2011, 01:42:40 PM »
Raider would not do this projection...loh...bcos this tukang tilik loh...!

Raider just ask lah....Analabs current EPS Rm 0.29.....NTA Rm 2.50....what is its fair value leh ?
 Then Nestle EPS Rm 1.80..Dividend Rm 1.62 what is the fair value leh ?

Yes project 5 yr.....we will always end up arguement.....bcos different assumption loh....like JOHN projection on GSB veri high loh!....raider.....always...look at the current mkt valuation now to do the analysis to see worthwhile....of course there is some allowance for growth also loh...!

Raider,
The discussion is only valid for long term investing (> 5 years or > 10 years).
Over the short term, there is too much volatility in individual stock share prices to make a meaningful discussion.  How to have a productive discussion on sentiments influencing the price of a stock?

Those investing for the long term are best advised to stay with good quality growth companies bought at fair or bargain prices.
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Online stockraider

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Re: 3i Investing Whispers
« Reply #35 on: July 02, 2011, 01:43:54 PM »
does Nestlé rings a bell? when u say analabs, a lot of people will b asking........analabs? who? analabs?
-c the defense?

i guess there will b times when growth reduces, interest rates increase, decrease in dividends..........true, unless fundamentals change, i will still continue to add.(mayb can get a bargain, anyways thats what an investor is always looking for.....bargains)

 ;)
ps. if really wanna talk Nestlé i can go on n on n on n on............so much to talk about!!!!

Raider agree to pay more for a well known name & brand loh....! But paying PE 28x Nestle v 5.5x Analabs....don u think too high a price to pay ? Maybe 13-14x PE acceptable loh.....!

The key is still margin of safety and what is your defensive anchor loh...!
Afterall investment....is all about figure....how much more is paying too much for the name loh...?

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #36 on: July 02, 2011, 01:44:03 PM »
SS

I routinely scan through the KLSE counters for good quality stocks; good quality growth stocks; good quality value stocks; and others.  You can do this very quickly.

There were usually less than 40 counters that I would be interested in.  And of these, I would need to still narrow them down to less than 5.  

Often, the extra money just goes back into reinvesting into the pre-existing stocks in my portfolio.
:thumbsup: :thumbsup: :thumbsup: :thumbsup:

 ;)

i do scan klse at least 2 times a year. there r lots of counters that catches my eyes but not quite as much as 40 at a time.

sometimes i must confess i get lazy. i do enjoy studying companies very much.(there r 2 seasons of picking for me, sometimes 3, the most 4, depends on the year) i must say it takes a lot of effort n time but at the same time very enjoyable. n once i start it will b days n nights till my wife starts tellin me that i work too hard.....hehe!!!!......then its monitoring n buying n waiting!!!!(sellin too, depends on what i buy n for whatever reasons it was for)

i like your style very much!!!! thxs for sharing......appreciate it a lot!!!!i learn a lot from u!!!! ;)
 :)

There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #37 on: July 02, 2011, 01:46:53 PM »
Raider agree to pay more for a well known name & brand loh....! But paying PE 28x Nestle v 5.5x Analabs....don u think too high a price to pay ? Maybe 13-14x PE acceptable loh.....!

The key is still margin of safety and what is your defensive anchor loh...!
Afterall investment....is all about figure....how much more is paying too much for the name loh...?

i dont really use PE to value a company!!!!
 ;)
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #38 on: July 02, 2011, 01:47:10 PM »
Raider would not do this projection...loh...bcos this tukang tilik loh...!

Raider just ask lah....Analabs current EPS Rm 0.29.....NTA Rm 2.50....what is its fair value leh ?
 Then Nestle EPS Rm 1.80..Dividend Rm 1.62 what is the fair value leh ?

Yes project 5 yr.....we will always end up arguement.....bcos different assumption loh....like JOHN projection on GSB veri high loh!....raider.....always...look at the current mkt valuation now to do the analysis to see worthwhile....of course there is some allowance for growth also loh...!

Should those holding Nestle sell to buy Analabs?
Why should they?
Why NOT?

Analabs is a company that I do not follow.  I did look at this briefly but know little of its business.  Therefore, it is not within my circle of competence (for today).
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #39 on: July 02, 2011, 01:48:26 PM »
why analabs?

do u know what their core business is?

 ;)

Raider,

what is analabs core business?
 ;)
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

Offline leno

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Re: 3i Investing Whispers
« Reply #40 on: July 02, 2011, 01:52:41 PM »
to be successful investing in "growth stock" .. u need to be a genius like Buffett and work "very very hard" like Buffett.
U all just a bunch of average IQ, can't even get top in your class, score few A in spm or stpm , no first class degree areadi want to act like Buffett ? Worst still ... so damm LAZY .. never go visit the company u invest in, never go down the ground to assess .. onli talk kok buying growth stock ... quality this and that ... yet dont even know how to value simple company like Esso, etc. etc.

:devil: :devil: :devil:

Online stockraider

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Re: 3i Investing Whispers
« Reply #41 on: July 02, 2011, 01:53:37 PM »
Raider,
The discussion is only valid for long term investing (> 5 years or > 10 years).
Over the short term, there is too much volatility in individual stock share prices to make a meaningful discussion.  How to have a productive discussion on sentiments influencing the price of a stock?

Those investing for the long term are best advised to stay with good quality growth companies bought at fair or bargain prices.


Ok assuming Nestle Growth by 10%p.a............how long it take to catch up with the price of Rm 48.00....assuming the acceptable PE for bluechip is PE 15x...? What will be the value of Nestle in 5 yrs time ah ?

Ok assuming Analabs grow 6% p.a................how will Analabs value ............if acceptable quality secondary stock PE is 10x leh ? What is the value of Analabs in 5 yrs time ah ?

I am sure...........nestle EPS is hard pressed....to catch up.........with the share price if PE 15x.....in 5 yrs time loh...! This is a problem of over paying loh...! Too much expectation build into the stock mah..!

As for analabs.....it has no problem to perform....in fact there is a rerating of PE somemore.Low expectation & under promise....is good for the stock loh...!

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #42 on: July 02, 2011, 01:57:19 PM »
Raider agree to pay more for a well known name & brand loh....! But paying PE 28x Nestle v 5.5x Analabs....don u think too high a price to pay ? Maybe 13-14x PE acceptable loh.....!

The key is still margin of safety and what is your defensive anchor loh...!
Afterall investment....is all about figure....how much more is paying too much for the name loh...?

The historical average (normal) PE of Nestle is around 21 or 22.
Therefore, yes, it is rather on the high side of its normal valuation.

However, it is growing its earnings rather consistently.
It is generating good FCF.
It is giving increasing dividends over the years.
Its share price is supported by its existing dividend yields.

It has durable competitive advantage.
It is investing to grow (capex over the recent years).
It is growing its market locally (population growth) and overseas (halal food products, sent worldwide).
It has an existing worldwide network of Nestle companies to distribute its products worldwide.

No wonder, the investors pushed its PE higher than its usual of 21 or 22.
Good quality growth companies are never cheap, often they maybe overpriced above its fair value.
Your smartness is in your ability to identify these companies, and buy them at fair prices or bargain prices.

Sure, you can also get better returns in other stocks compared to Nestle.
Nestle however does meet the criteria of safety of principal and promise of a reasonable return (provided you did not overpay too much to own it).
Nevermind, those who overpaid with long term investing horizon, the investment is still profitable.  
This is the beauty also of investing into a good quality growth company.

Is Nestle really a growth company??
We can debate on this too. :)
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #43 on: July 02, 2011, 01:58:28 PM »
Ok assuming Nestle Growth by 10%p.a............how long it take to catch up with the price of Rm 48.00....assuming the acceptable PE for bluechip is PE 15x...? What will be the value of Nestle in 5 yrs time ah ?

Ok assuming Analabs grow 6% p.a................how will Analabs value ............if acceptable quality secondary stock PE is 10x leh ? What is the value of Analabs in 5 yrs time ah ?

I am sure...........nestle EPS is hard pressed....to catch up.........with the share price if PE 15x.....in 5 yrs time loh...! This is a problem of over paying loh...! Too much expectation build into the stock mah..!

As for analabs.....it has no problem to perform....in fact there is a rerating of PE somemore.Low expectation & under promise....is good for the stock loh...!

Raider,

i did hav a brief look at analabs a year ago but decided to not buy.

why?

let us hav a look, what is analabs core business?

 ;)
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #44 on: July 02, 2011, 01:59:49 PM »
to be successful investing in "growth stock" .. u need to be a genius like Buffett and work "very very hard" like Buffett.
U all just a bunch of average IQ, can't even get top in your class, score few A in spm or stpm , no first class degree areadi want to act like Buffett ? Worst still ... so damm LAZY .. never go visit the company u invest in, never go down the ground to assess .. onli talk kok buying growth stock ... quality this and that ... yet dont even know how to value simple company like Esso, etc. etc.

:devil: :devil: :devil:

Yes, Leno.  All the above will be the limitations of most investors.
How are the professionals faring?
Be approximately right and not exactly wrong.
That is good enough for me.

It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #45 on: July 02, 2011, 02:05:37 PM »
The historical average (normal) PE of Nestle is around 21 or 22.
Therefore, yes, it is rather on the high side of its normal valuation.

However, it is growing its earnings rather consistently.
It is generating good FCF.
It is giving increasing dividends over the years.
Its share price is supported by its existing dividend yields.

It has durable competitive advantage.
It is investing to grow (capex over the recent years). growth capex
It is growing its market locally (population growth) and overseas (halal food products, sent worldwide).
It has an existing worldwide network of Nestle companies to distribute its products worldwide.

No wonder, the investors pushed its PE higher than its usual of 21 or 22.
Good quality growth companies are never cheap, often they maybe overpriced above its fair value.
Your smartness is in your ability to identify these companies, and buy them at fair prices or bargain prices.

Sure, you can also get better returns in other stocks compared to Nestle.
Nestle however does meet the criteria of safety of principal and promise of a reasonable return (provided you did not overpay too much to own it).
Nevermind, those who overpaid with long term investing horizon, the investment is still profitable.  
This is the beauty also of investing into a good quality growth company.

Is Nestle really a growth company??
We can debate on this too. :)


the beauty of the business for me is their 'core values'...........'mission statement', which i find true till today. plus the value generated by their 'creating shared values'. u know the do monthly updates on those in some countries.

for me their fair value of today is 48.000 but my calculations is based on optimistic sentiments.

EPS 1,670
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #46 on: July 02, 2011, 02:09:19 PM »
the beauty of the business for me is their 'core values'...........'mission statement', which i find true till today. plus the value generated by their 'creating shared values'. u know the do monthly updates on those in some countries.

for me their fair value of today is 48.000 but my calculations is based on optimistic sentiments.

EPS 1,670


EPS 1,670
DIV  1,650
PAYOUT RATIO 99%

duration 10 years assuming 90% payout
earnings growth 10%
discount rate 10%
terminal PE 20

NPV 48.43
 :)
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

Online stockraider

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Re: 3i Investing Whispers
« Reply #47 on: July 02, 2011, 02:12:08 PM »
The historical average (normal) PE of Nestle is around 21 or 22.
Therefore, yes, it is rather on the high side of its normal valuation.

However, it is growing its earnings rather consistently.
It is generating good FCF.
It is giving increasing dividends over the years.
Its share price is supported by its existing dividend yields.

It has durable competitive advantage.
It is investing to grow (capex over the recent years).
It is growing its market locally (population growth) and overseas (halal food products, sent worldwide).
It has an existing worldwide network of Nestle companies to distribute its products worldwide.

No wonder, the investors pushed its PE higher than its usual of 21 or 22.
Good quality growth companies are never cheap, often they maybe overpriced above its fair value.
Your smartness is in your ability to identify these companies, and buy them at fair prices or bargain prices.

Sure, you can also get better returns in other stocks compared to Nestle.
Nestle however does meet the criteria of safety of principal and promise of a reasonable return (provided you did not overpay too much to own it).
Nevermind, those who overpaid with long term investing horizon, the investment is still profitable.  
This is the beauty also of investing into a good quality growth company.

Is Nestle really a growth company??
We can debate on this too. :)

What IS FCF ? How u benchmark & value ?
FCF of Nestle is around Rn 2.40.....so at Price about value 5% Pa....this compare with risk free fixed Deposits of 3.5% p.a......not enough margin of safety don u think so ?

Look at analabs FCF of Rm 0.25..........agst share price 1.69....we are getting 17% p.a. won't u think attractive compare with Fixed deposits ?  

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #48 on: July 02, 2011, 02:15:23 PM »
EPS 1,670
DIV  1,650
PAYOUT RATIO 99%

duration 10 years assuming 90% payout
earnings growth 10%
discount rate 10%
terminal PE 20

NPV 48.43
 :)

Nestlé's values n core philosophy has generated huge goodwill. plus i m seeing firsthand how halal concept n requirements hav blossom in europe  n other parts of the world. this i guess will benefit Nestlé Malaysia enormously as the halal hub of them.

can they grow 10% per year? can they payout 90% continuously?

will c? might b less but potentially more!!!!............hopefully!!!!(then gonna tell the kids, papa bought Nestlé for you guys but it didnt turn out well!!!!)

 ;)
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #49 on: July 02, 2011, 02:18:58 PM »
What IS FCF ? How u benchmark & value ?
FCF of Nestle is around Rn 2.40.....so at Price about value 5% Pa....this compare with risk free fixed Deposits of 3.5% p.a......not enough margin of safety don u think so ?

Look at analabs FCF of Rm 0.25..........agst share price 1.69....we are getting 17% p.a. won't u think attractive compare with Fixed deposits ?  

i did ask myself this with reference to analabs. is it sustainable, will it continue to grow n grow into the future? what business r they in? what is their core business? where is the 'moat'? what is their competitive advantage? is it durable?

 ;)
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.