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 817223 times)

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #100 on: July 03, 2011, 02:11:31 PM »


Compare MNRB with LPI.



Monotonous earnings growth over many years = Good Quality Growth Company
PE is rather high at present.
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: Portfolio Management - To Sell or Not To Sell
« Reply #101 on: July 03, 2011, 03:00:34 PM »
To Sell or Not To Sell

The mechanical steps are simple, but the judgments that result from them are somewhat more subjective and a bit less intuitive.

You do not want to sell capriciously stocks you worked so hard to select. So long as it makes sense to do so, you will want to give them the chance to correct problems that arise in the course of business. However, your own common sense is good enough to tell you whether the problems besetting the company are serious.

If, after looking at what the company, analysts covering the company, and the news reports and releases have to say about the problems, you are still uncertain, the best advice is, ―When in doubt, throw it out!

Look at Sales first for two reasons.

1.  First, a downturn in revenue will ultimately result in a downturn in profits and ultimately in earnings. If you can catch a trend before it reaches the bottom line, you may be able to sell the company before other investors have reacted to the decline in earnings that will follow and save yourself some money.

2.  Secondly, like a huge ship under way, it takes a strong force and a lot of time to change direction. Sales are generally the most stable statistics, and the market for a product or service doesn‘t drastically change overnight unless there‘s a significant reason. The impact of the introduction of a competitive product or service—one that makes the product suddenly obsolete—is the kind of thing that can cause a dip in sales with long-term implications. Marketing gaffes, large-scale catastrophes, a demoralized sales force—all can impact sales and need to be analyzed to determine how well management may handle them.

There are some things peculiar to various industries, of course. Companies whose businesses depend upon the weather or other unpredictable conditions are an example. Gas or oil sales can be off because of a mild winter, for instance.

Next in importance is the percent change of Pre-tax Profit, which would be the first indicator of a future downtrend in earnings. More than a quarter period of decline in profits will nearly always result in a downtrend in both earnings and in the stock price. It may well be a harbinger of things to come in terms of the ability of the company‘s management to sustain its previous rosy rate of earnings growth.

The 12-months trailing earnings, and then the quarterly earnings, are last in priority because it‘s likely that the investing public will have already reacted to that decline. By the time the problems have hit the bottom line, it‘s probably already too late to do anything but cut your losses and get out.
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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The Portfolio Management Process

The portfolio management process consists of two distinct strategies, Defense and Offense.
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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The Portfolio Management Process

The portfolio management process consists of two distinct strategies, Defense and Offense.

Defense

No matter how diligently and conservatively you may have done your homework in selecting and following the stocks in your portfolio, conventional wisdom and history tell us that one out of every five stock you select will do poorly. The good news is that the other four will make money for you one usually surpassing your expectations. Known as the ―Rule of Five, this statistical wisdom should give you some comfort when you‘re tempted to be too critical of yourself as those companies invariably fall by the wayside.

Such failures occur most often for reasons well beyond anyone‘s ability to predict them. Such unforeseen events range from the collapse of the Enron‘s and WorldCom‘s of the world, companies whose unscrupulous corporate governance surfaced and brought them down, to the likes of Bruno‘s, a flourishing food chain that fell when its entire corporate staff perished in an airplane accident. Usually, the conditions that cause the decline of companies you expected to be winners are so unpredictable they take company managements, analysts, and other financial professional by surprise as well. You certainly can‘t blame yourself for failing to foresee something that people whose every waking hour is devoted to running or following those companies couldn‘t predict and compensate for!

As the word implies, defense is the process of protecting your portfolio from the damage that can be inflicted on your portfolio‘s performance by that one out of five companies whose actual, fundamental perfor-mance fails to live up to the expectations you had when you pur-chased the stock. It is not at all related to the price of your stock. Declining prices are sometimes, but certainly not always, a result of declining fundamentals.

Once you have selected the portfolios that require your attention and updated the company data and prices, continue with these steps:

1) Compare: Determine the percent of change between the current values of Sales, Pre-tax Profits, and Earnings per share and the values for the same period the previous year, selecting for further analysis those companies whose growth has not met the expectations you had when you bought the stock.
2) Analyze: Examine additional history to further refine your selection of companies that may be candidates for sale, determin-ing if there has been a marked trend.
3) Decide: For those companies that remain of concern, use the resources available on the Internet to determine why performance has declined, selling as soon as possible those whose prospects for returning to the strong and steady growth that attracted you are remote.
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: Portfolio Management
« Reply #104 on: July 03, 2011, 03:23:58 PM »
 :thumbsup: :thumbsup: :thumbsup: :thumbsup:
 :)
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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The Portfolio Management Process

The portfolio management process consists of two distinct strategies, Defense and Offense.

Offense

Offense is the strategy of proactively improving the performance of your portfolio by replacing the fine companies whose stock prices have been bid up by investors to the point where they no longer can produce a desirable return. Of course, this discipline relates strictly to the price.

Once you‘ve determined that the stocks in your portfolio are all companies with sound quality attributes:
1) Check Risk and Reward: Select those companies whose Relative Value, Reward/Risk Ratio, and Total Return indicate that they are overpriced and offer insufficient return, and at too great a risk.
2) Reevaluate: Review your study for each of those stocks, being sure your estimates of earnings growth and forecast high P/Es are reasonable in view of current performance.
3) Challenge: Replace those companies whose return and risk remain unsatisfactory with other companies of equal or better quality and better potential returns
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: Portfolio Management
« Reply #106 on: July 03, 2011, 03:27:22 PM »
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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The Portfolio Management Process

The portfolio management process consists of two distinct strategies, Defense and Offense.

Because protection is crucial, defensive strategy is by far the most urgent and should be implemented conscientiously and regularly.

However, because the data on which defensive strategy is based changes only four times a year for each stock, it will require your attention only when new financial results are reported each quarter.
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 #108 on: July 03, 2011, 03:31:49 PM »
Just put it this way
1) Hard Core Fundamental investment ala Ben Graham -All practise & genuinely & deligently and completely by Raider & Leno but not BB loh...!
2) Warren Buffet technique-Is also practise by Leno and Raider selectively.......when it is valuation compelling loh...But more adopted by BB loh...!
3) BB..........had been mislead...on false sense of optimism on buying into overvalue Growth bluechips like most fund managers do....but raider and Leno will never will loh..! Unless actually plan for the purpose of pure speculation...!

Conclusion.....Leno & Raider....really capitalise on Mr Market........the classic Graham's philosophy loh...!
There are diff between Leno-Raider method v BB method.....but we are still fundamental investor....but of course Leno-Raider is more Value Fundamental loh...!

Raider,

your leech technique still boleh pakai................. :thumbsup: :thumbsup: :thumbsup: :thumbsup:

but my dua sen thinkin, your Value Fundamental still a bit scary lor. i always fall back on this quote, thinkin sometimes that i people might hav discover a GEM, thinkin that what they see n what beautiful prices they seem to b........................

Seth said once too many times:
Certainly, when a few securities start to get cheap even as the bull market continues, a value starved investor will step up to buy them. Soon enough, many of these prove to be no bargain at all, as the flaws that caused them to be rejected by the bulls become more glaringly apparent when the world gets worse.

 ;)
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 #109 on: July 03, 2011, 03:38:23 PM »
Correct ... that's why we should choose over-valued stocks ...
for eg. between
1. stock A trading at 21 sen but have net cash of 28 sen and other assets of 20 sen
2. stock B trading at 21 sen but have net cash of MINUS 28 sen and other asset of 2 sen

we must invest in stock B ... because there is a reason why stock A trading at so low compare to its real value.

 :clap: :clap: :clap:

Online iiinvestsmart

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Re: Portfolio Management - Strategies for buying and selling.
« Reply #110 on: July 03, 2011, 03:40:58 PM »
My strategies for buying and selling (KISS version)


Strategies for buying and selling.

For buying:

Buy good quality (growth/undervalued) companies.

Assess QVM (Quality, Valuation and Management)

Buy these stocks at a discount to its intrinsic value (Margin of Safety)

(If you select your stocks carefully, often one can hold them for long periods. The idea is to allow compounding over the long period to work in your favour.)


For selling:

1. If you need cash for emergency. (But then, hopefully, you will have separate money for such emergencies. The cash invested into the market should be separate.)

2. You will need to sell URGENTLY (QUICKLY) if there is something wrong with the fundamental of your stock (example: fraudulent accounting, etc). At other instances, you do have the time to SELL at leisure.

3. Your stock has gone up too high. By your assessment, at that price the upside return is less, but the downside risk is more, then you may wish to sell to REINVEST INTO ANOTHER STOCK WITH MORE FAVOURABLE UPSIDE REWARD/DOWNSIDE RISK RATIO.

4. On occasions, you have identified a very good BARGAIN, you may wish to sell some of your stocks to REINVEST into these stocks to capture a higher upside/downside reward risk ratio that these stocks offer.

___________________________
___________________________

Defensive Portfolio Management = 2.
This is to prevent harm to the portfolio.
Urgent attention needed.

Offensive Portfolio Management = 3 & 4.
This is to optimise returns of the portfolio.
Have the time to sell at leisure.



"Investing should be fun and not a game."
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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Because protection is crucial, defensive strategy is by far the most urgent and should be implemented conscientiously and regularly.

However, because the data on which defensive strategy is based changes only four times a year for each stock, it will require your attention only when new financial results are reported each quarter.

very true!!!! once u hav identified good stocks, the job bcomes easier!!!! like u said once...........u rarely hav to sell(if at all). and over time as u know those better, adding more at the right time bcomes more natural too!!!!........n like u said, most likely scenario would b averaging up!!!!

 ;)
ps. never lose money sounds like a simple advice !!!!

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 #112 on: July 03, 2011, 03:43:31 PM »
My strategies for buying and selling (KISS version)


Strategies for buying and selling.

For buying:

Buy good quality (growth/undervalued) companies.

Assess QVM (Quality, Valuation and Management)

Buy these stocks at a discount to its intrinsic value (Margin of Safety)

(If you select your stocks carefully, often one can hold them for long periods. The idea is to allow compounding over the long period to work in your favour.)


For selling:

1. If you need cash for emergency. (But then, hopefully, you will have separate money for such emergencies. The cash invested into the market should be separate.)

2. You will need to sell URGENTLY (QUICKLY) if there is something wrong with the fundamental of your stock (example: fraudulent accounting, etc). At other instances, you do have the time to SELL at leisure.

3. Your stock has gone up too high. By your assessment, at that price the upside return is less, but the downside risk is more, then you may wish to sell to REINVEST INTO ANOTHER STOCK WITH MORE FAVOURABLE UPSIDE REWARD/DOWNSIDE RISK RATIO.

4. On occasions, you have identified a very good BARGAIN, you may wish to sell some of your stocks to REINVEST into these stocks to capture a higher upside/downside reward risk ratio that these stocks offer.

___________________________
___________________________

Defensive Portfolio Management = 2.
This is to prevent harm to the portfolio.
Urgent attention needed.

Offensive Portfolio Management = 3 & 4.
This is to optimise returns of the portfolio.
Have the time to sell at leisure.



"Investing should be fun and not a game."
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 #113 on: July 03, 2011, 03:51:38 PM »
Correct ... that's why we should choose over-valued stocks ...
for eg. between
1. stock A trading at 21 sen but have net cash of 28 sen and other assets of 20 sen
2. stock B trading at 21 sen but have net cash of MINUS 28 sen and other asset of 2 sen

we must invest in stock B ... because there is a reason why stock A trading at so low compare to its real value.

 :clap: :clap: :clap:

out of 10 stock type A, one or two could hav great potential to b great picks........and might go all the way, most often the rest will wither off slowly or remain constant n never achieve great heights. (though some might hav periodic spurts of excellence)

 ;)
ps.just me dua sen!!!!
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 #114 on: July 03, 2011, 03:54:22 PM »
Looking at Analabs....it is actually at the stage of start up & explosive growth stage....Growth in revenue & profits actual exploded in 2006 to 2010 from a humble EPS Rm 0.06....in 2006 to an explosive EPS of Rm 0.29....an average compound growth rate exceeding 60% pa wah !.

The beauty of analabs is that despite shooting up in eps like a rocket.....the balance sheet remain solid....with a net cash equivalent per share close to Rm 0.40 mah!.
Despite the explosive growth With NTA per share of Rm 2.50 & EPS of Rm 0.29.....analabs still trade at a wide discount to the market at Rm 1.69........there is misprice in valuation.....in which savvy investor....should capitalise on woh....!

Those who are in interested in analabs....should refer to the blog nextrade....who recommend analab strongly...in which raider & senior analyst also concur loh....!

The beauty of analabs....is that despite......the explosive growth in 2010....the shate price at Rm 1.69,still veri undemanding valuation of PE 5.5x .........the best thing this fits the investment criteria of famous Growth Grand Master Philip Fisher and Famous Grand Master of Value Investor Ben Graham..........veri rare situation....to fit this criteria....it is like the esclipse of the moon .....when everything come in line Loh....!

Another positive point raider noted....is technically...Analabs is strong and close to a breakout.....with trading volume increasing drastically. That further support the notion....mkt starting to take note of analabs solid performance in terms of growth, undervaluation and solid balance sheet mah...! 

So don let soothsayer....disappoint....u......when this is clearly a growth undervalue company loh...!

Check it our for yourself mah ?

where does this revenue come from? will this explosive growth b sustainable? is it from their core business? what is their 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 soulsimple

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Re: 3i Investing Whispers
« Reply #115 on: July 03, 2011, 04:30:23 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...!


Buffett has correctly pointed out that the correct way to value a business is to calculate the discounted value of all its future cash flows. The concept is simple. The application is not.

For many businesses, it is difficult to calculate this with a level of precision that has much utility.

Some businesses are sufficiently predictable that a careful business analyst can make a reasonable and useful calculation of its DCF, or what Buffett calls its intrinsic value.

Also, sometimes in periods of extreme dislocation, a business will sell at such a depressed price that you can reasonably conclude that the market price is below intrinsic value, even if the range of possible DCFs is large.

The multiple at which a stock trades is nothing more than a shorthand proxy for its DCF.

In Buffett’s 1991 letter to shareholders, he concluded that, assuming a discount rate of 10%, a business earning $1 million of free-cash and with long-term growth prospects of 6% would be worth $25 million or 25 times earnings.

A no-growth business also earning $1 million would be worth about 10 times earnings.

Business 1: $1 million / (10%-6%) = $25 million

Business 2: $ 1 million / (10%) = $10 million

As a practical matter, what types of things should you be thinking about when deciding if you are dealing with a company that deserves a multiple of 25 times earnings versus one that only deserves a multiple of ten times earnings. There are many factors to consider.

Venture capitalist Bill Gurley has written an excellent list of characteristics to consider when evaluating a company and determining what multiple to use when valuing its earnings.

You should carefully think about each of these and add them to your checklists for evaluating a business.

I’ve put Gurley’s characteristics in the form of a question.

1. Does the business have a sustainable competitive advantage (Buffett’s moat)?

2. Does the business benefit from any network effects?

3. Are the business’s revenue and earnings visible and predictable?

4. Are customers locked in? Are there high switching costs?

5. Are gross margins high?

6. Is marginal profitability expected to increase or decline?

7. Is a material part of sales concentrated in a few powerful customers?

8. Is the business dependent on one or more major partners?

9. Is the business growing organically or is heavy marketing spending required for growth?

10. How fast and how much is the business expected to grow?
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 #116 on: July 03, 2011, 04:32:11 PM »
Assessing quality of the company is certainly a critical investment issue. 

You must decide whether the company is a ―good one or not.

You have presumably decided that the company‘s track record of growth and earnings has been sufficiently stable and strong to warrant your consideration or you would have already abandoned the study.

This is the place where you assess the management team‘s capability to sustain that growth. This is one of the most important judgments you will make.

Why? Because, if you‘re wrong, you may be ―seduced into thinking that the stock is a great value when, in reali-ty, the stock is selling at a low price for a very good reason.


I cannot stress this point enough: The worse a company per-forms, the better a value it will appear to be.


Low Price: Raises a caution flag if the current price appears to be too low compared with its price history.

Significant changes in yield should direct your attention to any trend in the low price or dividends per share.

The worse a company performs, the better a value it will appear to be.  Look at what happens to all these valuations listed below of a stock when its price falls.

P/E
P/BV
P/S
FCF/P
DY
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.

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Re: 3i Investing Whispers
« Reply #117 on: July 03, 2011, 05:12:09 PM »
Compare MNRB with LPI.



Monotonous earnings growth over many years = Good Quality Growth Company
PE is rather high at present.

So conclusion buy LPI at current price kah? Maybe the answer is really yes bcos LPI PE higher ma, make me wanna laff only :giggle: :giggle: :giggle:....................................... ...............WAKAKAKAKAKAKAKAKAKA

Offline leno

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Re: 3i Investing Whispers
« Reply #118 on: July 03, 2011, 05:17:01 PM »
Correct ... that's why we should choose over-valued stocks ...
for eg. between
1. stock A trading at 21 sen but have net cash of 28 sen and other assets of 20 sen
2. stock B trading at 21 sen but have net cash of MINUS 28 sen and other asset of 2 sen

we must invest in stock B ... because there is a reason why stock A trading at so low compare to its real value.

 :clap: :clap: :clap:

out of 10 stock type A, one or two could hav great potential to b great picks........and might go all the way, most often the rest will wither off slowly or remain constant n never achieve great heights. (though some might hav periodic spurts of excellence)

 ;)
ps.just me dua sen!!!!

Correct ... that's why i say must buy Stock B marr ....   :D :D :D  err ... out of 10 stock of type B ... 8 will sure FLY even higher ... because there is a reason why people willing to buy a stock with net cash Minus 28 sen with other asset of 2 sen  .. at the price of 21 sen ...

Offline leno

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Re: 3i Investing Whispers
« Reply #119 on: July 03, 2011, 05:21:44 PM »
So conclusion buy LPI at current price kah? Maybe the answer is really yes bcos LPI PE higher ma, make me wanna laff only :giggle: :giggle: :giggle:....................................... ...............WAKAKAKAKAKAKAKAKAKA

do u know ... if i to erase the LPI stock name ... and replace it with the name of Longan Insurance .. suddenly it will fail the quality criteria lor ... eventhough every other thing remain the same ...

if dont believe me ... u can try post the Public Bank chart, balance sheet, sales, profit .. but make sure u dont put up the stock name ... see can still pass the quality criteria or not ...

 :D :D :D

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Re: 3i Investing Whispers
« Reply #120 on: July 03, 2011, 05:28:32 PM »
do u know ... if i to erase the LPI stock name ... and replace it with the name of Longan Insurance .. suddenly it will fail the quality criteria lor ... eventhough every other thing remain the same ...

if dont believe me ... u can try post the Public Bank chart, balance sheet, sales, profit .. but make sure u dont put up the stock name ... see can still pass the quality criteria or not ...

 :D :D :D

U sangat jahat la, bb * * until that stage meh? :D :D :D................................WAKAKA KAKAKAKAKAKAKA

Offline leno

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Re: 3i Investing Whispers
« Reply #121 on: July 03, 2011, 05:40:18 PM »
Correct ... that's why i say must buy Stock B marr ....   :D :D :D  err ... out of 10 stock of type B ... 8 will sure FLY even higher ... because there is a reason why people willing to buy a stock with net cash Minus 28 sen with other asset of 2 sen  .. at the price of 21 sen ...

Stock B net cash Minus 28 sen with remaining other asset or 2 sen = > Net Asset = Minus 26 sen = BANCRUPT company
By any common sense ... we should not buy it even at 1 sen .. but still ppl say can buy at 21 sen ...
reason because still got ppl buy and sell at 21 sen ... aiyorr ... u think still can be taught or not ?

 :shake: :shake: :shake:

Online iiinvestsmart

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Re: 3i Investing Whispers
« Reply #122 on: July 03, 2011, 05:54:50 PM »
do u know ... if i to erase the LPI stock name ... and replace it with the name of Longan Insurance .. suddenly it will fail the quality criteria lor ... eventhough every other thing remain the same ...

if dont believe me ... u can try post the Public Bank chart, balance sheet, sales, profit .. but make sure u dont put up the stock name ... see can still pass the quality criteria or not ...

 :D :D :D





Look at the earnings (green line) of both these companies.
The earnings have been growing year on year, for many years.
These attest to the quality of its business and the efficiency of its management.
Stay focus on the business and not on the stock.

Having assessed the quality of the business and its earnings growth potential and sustainability, you will need to form a value judgement decision.  Are LPI and PBB good quality growth companies, based on your criterias?  This is the critical question to answer first.

If yes, then proceed to do its valuation.  After you have done the valuation, then only look at its market price.

If no, don't bother with doing its valuation.  There are so many other stocks to look at.

Do you understand the approach?  (Here is my QVM or QMV approach.)

1.  Once again, assess the quality of the business of these companies and the efficiency of the management
2.  Then do the valuation. 
3.  Only after this, see if you wish to buy (if you do not own the stock or wish to add more of the stock); or hold or sell (if you already own the 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 stockraider

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Re: 3i Investing Whispers
« Reply #123 on: July 03, 2011, 09:02:31 PM »




Look at the earnings (green line) of both these companies.
The earnings have been growing year on year, for many years.
These attest to the quality of its business and the efficiency of its management.
Stay focus on the business and not on the stock.

Having assessed the quality of the business and its earnings growth potential and sustainability, you will need to form a value judgement decision.  Are LPI and PBB good quality growth companies, based on your criterias?  This is the critical question to answer first.

If yes, then proceed to do its valuation.  After you have done the valuation, then only look at its market price.

If no, don't bother with doing its valuation.  There are so many other stocks to look at.

Do you understand the approach?  (Here is my QVM or QMV approach.)

1.  Once again, assess the quality of the business of these companies and the efficiency of the management
2.  Then do the valuation. 
3.  Only after this, see if you wish to buy (if you do not own the stock or wish to add more of the stock); or hold or sell (if you already own the stock)
I m surprise....if u can get any other bluechips more undervalue than Analabs....!
If there are many....please name one loh....let raider's senior analyst do the evaluation loh...!

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Re: 3i Investing Whispers
« Reply #124 on: July 03, 2011, 11:02:56 PM »
I m surprise....if u can get any other bluechips more undervalue than Analabs....!
If there are many....please name one loh....let raider's senior analyst do the evaluation loh...!

Businesses of Analabs:

1.  Formulation & Repackaging of Chemicals;
2.  Recovery & Sales of Recycled Products;
3.  Prawn Cultivation;
4.  Manufacturing & Sale of Resin-impregnated Papers; and
5.  Property letting.

 :shake:
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.

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Re: 3i Investing Whispers
« Reply #125 on: July 03, 2011, 11:25:12 PM »
Businesses of Analabs:

1.  Formulation & Repackaging of Chemicals;
2.  Recovery & Sales of Recycled Products;
3.  Prawn Cultivation;
4.  Manufacturing & Sale of Resin-impregnated Papers; and
5.  Property letting.

 :shake:

Analabs with diversify business already........taken a discount by having a huge lower PE of 5.5x compare to Nestle Pe 28X mah....!
The most important point is.....the business....of analabs.....earn its profit in cash mah....! With cashflow improving & the balance sheet cash position strengthen loh....! The business margin also looks good mah...!

Raider see PE 5.5 v 28.........unfairly punish analabs.....hence going fwd raider....share improvement....will come due to 2 major factors loh:

1) Rerating of analabs to say PE 10X
2) Growth of analabs

With such huge discount......rerating is most likely in the future loh...! If that happen & together with growth Analabs potential is Rm 2.50-4.00 in next 2 yrs mah..!

Offline Quisss Sing de Cat

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Re: 3i Investing Whispers
« Reply #126 on: July 03, 2011, 11:27:49 PM »
Analabs with diversify business already........taken a discount by having a huge lower PE of 5.5x compare to Nestle Pe 28X mah....!
The most important point is.....the business....of analabs.....earn its profit in cash mah....! With cashflow improving & the balance sheet cash position strengthen loh....! The business margin also looks good mah...!

Raider see PE 5.5 v 28.........unfairly punish analabs.....hence going fwd raider....share improvement....will come due to 2 major factors loh:

1) Rerating of analabs to say PE 10X
2) Growth of analabs

With such huge discount......rerating is most likely in the future loh...! If that happen & together with growth Analabs potential is Rm 2.50-4.00 in next 2 yrs mah..!
after beli analbs ... talk like professor ... kih kih kih

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Re: 3i Investing Whispers
« Reply #127 on: July 03, 2011, 11:35:15 PM »
Analabs with diversify business already........taken a discount by having a huge lower PE of 5.5x compare to Nestle Pe 28X mah....!
The most important point is.....the business....of analabs.....earn its profit in cash mah....! With cashflow improving & the balance sheet cash position strengthen loh....! The business margin also looks good mah...!

Raider see PE 5.5 v 28.........unfairly punish analabs.....hence going fwd raider....share improvement....will come due to 2 major factors loh:

1) Rerating of analabs to say PE 10X
2) Growth of analabs

With such huge discount......rerating is most likely in the future loh...! If that happen & together with growth Analabs potential is Rm 2.50-4.00 in next 2 yrs mah..!

If Grow company........if buy by paying too much....is a veri high risk preposition mah....!
Warren Buffet....once quoted that the Wall Streets..lose more money....by paying too much to purchase  optimistic growth companies.....than losing monies thru bankruptcy of performing companies loh....!

In other words....more monies are loss due to momentum voting machine......!

Despite of this scenario....alot of so-called fundamental investor remain chasing momentum overvalue investment unconsciously on the Pretext of growth loh...!

By adhering to B Graham....teaching....we avoid the mistake of this scenario loh...!

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Re: 3i Investing Whispers
« Reply #128 on: July 03, 2011, 11:36:27 PM »
after beli analbs ... talk like professor ... kih kih kih

Talk to BB ....must have some standard mah...!

Offline Cals

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Re: 3i Investing Whispers
« Reply #129 on: July 04, 2011, 03:17:28 AM »
thanks for the FA lessons  ;) took an hour off my reading time.

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #130 on: July 04, 2011, 05:54:38 AM »
Businesses of Analabs:

1.  Formulation & Repackaging of Chemicals;
2.  Recovery & Sales of Recycled Products;
3.  Prawn Cultivation;
4.  Manufacturing & Sale of Resin-impregnated Papers; and
5.  Property letting.

 :shake:

Raider,

which above is Analabs's core business? Is it doing well? what is your projected growth? is it sustainable? is it durable? what competitive advantages do they hav? are they focusing on their core?

the other non core businesses, how well do they know them? how do u value each business that they hav? will those businesses b sold off next year? will they add new ones?

.......does it fit 'quality growth stock' as describe in this thread?
 ;)
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

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Re: 3i Investing Whispers
« Reply #131 on: July 04, 2011, 07:50:01 AM »
:clap:
Well done.
Analabs is presently $1.63 and you have captured a return of 100% based on your cost of 80 sen.
So, how many years do you have to wait for the next doubling in the share price of Analabs, i.e. from $1.63 to $3.26?




ANALABS RESOURCES DISPOSES PROPERTY IN SHAH ALAM FOR RM7.5M
03 June 2011
ANALABS RESOURCES reported that 100%-owned INAGRO sb had on May 30, 2011 entered into an Agreement to dispose to LIGHTING EDITIONS sb a 1-1/2 storey factory on a 12,708 sq m plot of leasehold land i ...

ANALABS RESOURCES - PRINCIPAL OFFICER SHARE DISPOSAL
28 April 2011
ANALABS RESOURCES reported that Principal Officer WONG CHEW HAR had on Apr 26, 2011 disposed 600,000 shares in the Company at RM1.51 per share. ...

ANALABS RESOURCES - PRINCIPAL OFFICER SHARE DISPOSAL
17 August 2010
ANALABS RESOURCES reported that Principal Officer WONG CHEW HAR had on Aug 12, 2010 disposed 600,000 shares in the Company at RM1.62 per share. ...

ANALABS RESOURCES ACQUIRES SPECIAL PAPER MANUFACTURER
23 July 2009
ANALABS RESOURCES reported Jul 22, 2009 that the Company had entered into Agreement to acquire 100% equity in COVERIGHT SURFACES MALAYSIA sb from SURFACES HOLDINGS bv (vendor) for RM40m cash.

ANALABS RESOURCES REVALUES PROPERTIES
01 July 2009
ANALABS RESOURCES reported Jun 30, 2009 that a revaluation of the Company's properties had result in a Net Revaluation Surplus of RM4.8m or 8 sen per share increasing is Net Assets Value to RM1.94 ...

Businesses of Analabs:

1.  Formulation & Repackaging of Chemicals;
2.  Recovery & Sales of Recycled Products;
3.  Prawn Cultivation;
4.  Manufacturing & Sale of Resin-impregnated Papers; and
5.  Property letting.

 :shake:



Insightful article in the Edge, abeit old news of 2007.

The  company was generating lots of cash from its business as it was not reinvesting to grow.  However, instead of returning cash to shareholders in dividends (which were small), the company dabbled in buying and selling equities. 

I think they did reinvest their cash into another business recently.

Which of Analabs business do you like the most?
Which of Analabs business generates the most profit for the company?

There is always a reason why a company's PE is low.

Yes, when Analabs business profits grow, your investment will be rewarded too.  Same low PE x higher EPS = higher market price. 
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.

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Re: 3i Investing Whispers
« Reply #132 on: July 04, 2011, 09:24:56 AM »
Raider,

which above is Analabs's core business? Is it doing well? what is your projected growth? is it sustainable? is it durable? what competitive advantages do they hav? are they focusing on their core?

the other non core businesses, how well do they know them? how do u value each business that they hav? will those businesses b sold off next year? will they add new ones?

.......does it fit 'quality growth stock' as describe in this thread?
 ;)
Analabs business leadership,
1) Coveright.....impregnated melanine paper(acquired from soochai Qui Lou....bcos of corporate business restructuring)
2) Recycle of toxic Material & Spore Airport Cleaning services (about same size with another rival Texcycle loh)

Prawn....actually commodity food business....so so but high margin mah....! Thus good prospect mah...1

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #133 on: July 04, 2011, 10:07:31 AM »
analab **** :'( :'( :'( :'( :'( :'(

wah!!!!

u cari gaduh with No1 n No2 ah?

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

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Re: 3i Investing Whispers
« Reply #134 on: July 04, 2011, 10:42:24 AM »


Insightful article in the Edge, abeit old news of 2007.

The  company was generating lots of cash from its business as it was not reinvesting to grow.  However, instead of returning cash to shareholders in dividends (which were small), the company dabbled in buying and selling equities. 

I think they did reinvest their cash into another business recently.

Which of Analabs business do you like the most?
Which of Analabs business generates the most profit for the company?

There is always a reason why a company's PE is low.

Yes, when Analabs business profits grow, your investment will be rewarded too.  Same low PE x higher EPS = higher market price. 
He,,,,,,,,he.....he......! Thanks for bb small encouragement & compliment.......Analabs........up Rm 0.01.........breaking.......the Rm 1.70 barrier loh...! Go...go...go.....! :cash: :cash: :cash: :thumbsup: :thumbsup:

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Re: 3i Investing Whispers
« Reply #135 on: July 04, 2011, 12:23:19 PM »
He,,,,,,,,he.....he......! Thanks for bb small encouragement & compliment.......Analabs........up Rm 0.01.........breaking.......the Rm 1.70 barrier loh...! Go...go...go.....! :cash: :cash: :cash: :thumbsup: :thumbsup:

Coming coming more  :cash: :cash: :cash: Analabs Rm 1.73....!  :cash: :thumbsup: :thumbsup: now racing with kfima loh...!
Go Go Go Analabs....! :thumbsup: :thumbsup: :cash: :cash:

Offline leno

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Re: 3i Investing Whispers
« Reply #136 on: July 04, 2011, 12:34:06 PM »
Coming coming more  :cash: :cash: :cash: Analabs Rm 1.73....!  :cash: :thumbsup: :thumbsup: now racing with kfima loh...!
Go Go Go Analabs....! :thumbsup: :thumbsup: :cash: :cash:

 :party: :party: :party:

Offline soulsimple

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Re: 3i Investing Whispers
« Reply #137 on: July 04, 2011, 03:12:44 PM »
:party: :party: :party:

when u start to offload pls let us know the reason........ok!!!!
 ;)
There are no words to describe the beauty of a simple ordinary life.
That's why we just don't hear much about them.

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Re: Portfolio Management - Sell the losers, let the winners run.
« Reply #138 on: July 04, 2011, 04:26:46 PM »
Sell the losers, let the winners run.

Losers refer NOT to those stocks with the depressed prices but to those whose revenues and earnings aren't capable of growing adequately. Weed out these losers and reinvest the cash into other stocks with better revenues and earnings potential for higher returns.
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 Cals

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Re: 3i Investing Whispers
« Reply #139 on: July 04, 2011, 04:29:15 PM »
actually its already in a mini breakout, wouldnt it test its new resistance  :P

Offline money_builder

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Re: Portfolio Management - Sell the losers, let the winners run.
« Reply #140 on: July 04, 2011, 04:56:26 PM »
Sell the losers, let the winners run.

Losers refer NOT to those stocks with the depressed prices but to those whose revenues and earnings aren't capable of growing adequately. Weed out these losers and reinvest the cash into other stocks with better revenues and earnings potential for higher returns.


 :thumbsup: :thumbsup:

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Re: 3i Investing Whispers
« Reply #141 on: July 04, 2011, 09:53:56 PM »
actually its already in a mini breakout, wouldnt it test its new resistance  :P

Yes analabs....make a mini breakout....but can this be follow thru or sustain ?
Raider think.....the current valuation....& EPS growth should be able sustain the share  breakout price of Rm 1.72 mah...!

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Re: Portfolio Management - WHY KEEP CASH?
« Reply #142 on: July 05, 2011, 04:11:39 PM »
Different strategies for investing available cash. WHY KEEP CASH?

One significant difference between many investors is evident in the different strategies for investing available cash.

Some investors will typically choose to be fully invested at all times, since cash balances would likely cause them to lag behind a rising market. 

Other investors, by contrast, are willing to hold cash reserves (for the short term) when no bargains are available.  Among the reasons offered are:

1.  Cash is liquid and provides a modest, sometimes attractive nominal return, usually above the rate of inflation.
2.  The liquidity of cash affords flexibility, for it can quickly be channeled into other investment outlets with minimal transaction costs.
3.  Finally, unlike any other holding, cash does not involve any risk of incurring opportunity cost (losses from the inability to take advantage of future bargains) since it does not drop in value during market declines.
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.

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Re: 3i Investing Whispers
« Reply #143 on: July 06, 2011, 12:29:52 PM »




Look at the earnings (green line) of both these companies.
The earnings have been growing year on year, for many years.
These attest to the quality of its business and the efficiency of its management.
Stay focus on the business and not on the stock.

Having assessed the quality of the business and its earnings growth potential and sustainability, you will need to form a value judgement decision.  Are LPI and PBB good quality growth companies, based on your criterias?  This is the critical question to answer first.

If yes, then proceed to do its valuation.  After you have done the valuation, then only look at its market price.

If no, don't bother with doing its valuation.  There are so many other stocks to look at.

Do you understand the approach?  (Here is my QVM or QMV approach.)

1.  Once again, assess the quality of the business of these companies and the efficiency of the management
2.  Then do the valuation. 
3.  Only after this, see if you wish to buy (if you do not own the stock or wish to add more of the stock); or hold or sell (if you already own the stock)

How then do you assess management quality?

Those in management should have integrity, intelligence and also must be hardworking.  Most importantly, they should have integrity.  Search and look for integrity in the managers; without this, their intelligence and hardworking will work against the interest of the shareholders.

In present day perspective, the shareholders and the management interests are linked or in conflict mainly in two principal areas of:

(1)  competence of management and,
(2)  policies of management toward stockholders - notably in the matter of dividends.

What are your views of companies hoarding cash aplenty when perhaps, the better decision is to distribute the cash to the shareholders in dividends or share buy-backs?
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.

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Re: 3i Investing Whispers
« Reply #144 on: July 07, 2011, 07:53:34 PM »
May your investing be as rewarding as mine. :-[
 :clap: :hi: :cash: :giggle:


Portfolio value


Grahasmun did share his secrets.  Thanks.

When i was 18 & just started investment.
I approach my grandpa for advice.
Grandpa show me his list of stocks which he had been holding for more than 10 years.

1) Sime Darby
2) Public Bank
3) Shell
4) KLK
5) Oriental
6) PPB
7) Maybank
8) Genting
9) Guiness
10) Rothmans (BAT)

He never dispose this stocks & he is holding this stock for long term & for dividend .
He tell me that he is getting dividend of more than Rm 80000 a year, at that time the value of his portfolio is Rm 1.5 million.

At that time, i totally disagree with his investment philosophy as old fashion !
Stockmarket is here to help us to grow rich quick !!
If only i got the chance to manage Grandpa's assets which he refuses to let us touch !

25 years later Grandpa's portfolio had grown to amazing Rm 16 million & dividend a year is in the region Rm 600k p.a. And me, i still underperform against my Grandpa, eventhough i m more enterprising & industrious


U see how i wasted more than 20 yrs of my life, when i can easily adopt time tested Grandpa's investment philosophy.
only for past 5 yrs i begin to adopt my grandpa strategy with a slight modifications !

 
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.

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Re: 3i Investing Whispers
« Reply #145 on: July 07, 2011, 08:09:34 PM »
The Lure of Short-Term Gains


There are many strategies employed in the market.
During a given period, any strategy may give a negative return,
despite having delivered good positive returns in the past or over the long term.
The investor maybe tempted to change a proven strategy.

An investor changed from
   fundamental investing,
      to technical investing,
         to warrants investing,
            to options investing
               and to investing in U.S. equities.

These techniques spoke loudly the resourcefulness of the investor,
but the success must await an honest revelation of the total returns.
This was certainly bewildering to those who are less savy.
Yet, it was both interesting and intriguing to follow the investing adventure of this investor.

Sometimes, the lure of short-run gains, the attraction of a new paradigm,
and the relentless pressure to keep pace with hot sectors and hot stocks
caused some/many investors to abandon their long-term principles.
The long-term moderate rate of return is too slow for many who tasted the spectacular gains made in the bull market.

However, by accepting a modest return of 7 or 8% per year (doubling wealth every 10 years),
there are many stocks giving such a return with low or no risk.
Patience must be exercised by long-term investors.
Stocks remain the best investment for all those seeking steady, long-term gains.


... copy and paste from someone blogsite ...

Remisiers or brokers are usually gamblers.  :(
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 Dorky

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Re: 3i Investing Whispers
« Reply #146 on: July 07, 2011, 08:16:20 PM »
There ain't no such a thing as long-term.
Buy, sell, up, down, gain, gain.

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Re: 3i Investing Whispers
« Reply #147 on: July 07, 2011, 08:20:03 PM »
There ain't no such a thing as long-term.

Grahamsmun shared his story.
90% of "investors" in the stock market are traders.  :(

When i was 18 & just started investment.
I approach my grandpa for advice.
Grandpa show me his list of stocks which he had been holding for more than 10 years.

1) Sime Darby
2) Public Bank
3) Shell
4) KLK
5) Oriental
6) PPB
7) Maybank
8) Genting
9) Guiness
10) Rothmans (BAT)

He never dispose this stocks & he is holding this stock for long term & for dividend .
He tell me that he is getting dividend of more than Rm 80000 a year, at that time the value of his portfolio is Rm 1.5 million.

At that time, i totally disagree with his investment philosophy as old fashion !
Stockmarket is here to help us to grow rich quick !!
If only i got the chance to manage Grandpa's assets which he refuses to let us touch !

25 years later Grandpa's portfolio had grown to amazing Rm 16 million & dividend a year is in the region Rm 600k p.a. And me, i still underperform against my Grandpa, eventhough i m more enterprising & industrious


U see how i wasted more than 20 yrs of my life, when i can easily adopt time tested Grandpa's investment philosophy.
only for past 5 yrs i begin to adopt my grandpa strategy with a slight modifications !

 
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 K$ngK$ng

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Re: 3i Investing Whispers
« Reply #148 on: July 07, 2011, 08:31:27 PM »
Now i believe bluechips is the answer..........i cant chase the penny stok 5days a week.............iam so naive....buying penny...........after im set free....i will buy one good bluechips that give dividend bonus free warrants.......nomore playing penny

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Re: 3i Investing Whispers
« Reply #149 on: July 07, 2011, 08:39:19 PM »
Remisiers or brokers are usually gamblers.  :(

This is because when they see their clients making money from "good" tips, they cannot resist the temptation to follow. 

Emotions alone can determine the eventual success or failure in an investor's life.
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.