Eagle

Dear Fellow Investor,

Dolly and I just returned from  a short holiday to Taiping and Cameron Highlands. The weather was great- cooling with  light rain in both places.  Being a triple holiday crowds were heavy in Cameron Highlands but light in Taiping.

The high point of our trip was our visit to the eagle sanctuary in Sepetang which is on the coast and about 20 km from Taiping.  There were lots of red eagles and we enjoyed watching them swoop down from the sky to catch small fish.   

The boatman used an eagle call which looked like a small trumpet to summon the eagles.

For 2016 we must invest like the eagle. We must look for undervalued companies off the radar screen. These would preferably be small/ mid caps .  When the opportunity emerges we must swoop like the eagle for the juicy  fish.

The eagle by the way is  a fearless bird with sharp vision and focus and is a master in capturing its prey.

Opportunities will emerge but patience and vigilance will be part of the game plan. Every day we filter for 18 day line changes and then we look at the financials. The 18 day line change is like the eagle call which summons us to dinner.

I read in the Edge today that Collier’s Global Investor Outlook 2016 places Singapore on the top of the Asian list for 2016 citing deep value at reasonable prices. This includes property as well as equities.

This Sunday I will write a more detailed report on investment opportunities in 2016.

Have a happy and prosperous 2016 New Year

Strategy for market 2016

20 December 2015

 

Dear Fellow Investor,

What is our strategy for the KLSE and stock markets in  2016 ?  Many have asked me and my bottom line view is to focus on selected small/ mid-caps. Make sure they have a niche and a highly focused business,  strong financials, low or no debt and a history of growing earnings.

 

Stay away from the mainstream shares: These are the big companies on the broker recommended lists.   They are the favourites of some unit trust companies/ asset managers/ foreign funds and the investment crowd.

 

With the slowing world economy it is difficult for these types of companies to grow. They are layered with large staffs, bureaucracy, competition, and in many cases large debts.

 

Should interest rates rise those companies with large debts will be in trouble.

The downside of small caps can be lack of liquidity. That means you must have the mind set of an investor.  These are usually not trading shares.

 

You must take the time to understand the business, meet with the management and understand their financials. For our clients this is what we do when we invest for them but you can do the same if you have time.

 

We have followed this strategy in 2015  with success and made profits for our clients and hopefully can perform in 2016.

 

Of course if the bull returns to the KLSE we will underperform.  No one except God knows for sure the answer to the KLSE performance in 2016.  My guess based on growth and economic fundamentals show a ranging 2016 market and the need to continue with our 2015 strategy.

 

Thank you for all who joined my Facebook page.  I am still learning about it and am trying to find a way to filter out those who are not investors/ traders.

 

I am getting visits from con men/ Ponzi operators/ Scams/ Call girls etc from all over the world !   Even Nigeria/ South Africa/ Russia/ Thailand  etc.

I do have technical support but any feedback on this topic is greatly appreciated. I know many of you are experts on facebook

 

My Facebook home page is :   

https://www.facebook.com/profile.php?id=100008445604416

if you wish to join our network.

I will be on holiday to Taiping and Cameron Highlands from 22 December to 30 December.  Hopefully there will not be too much rain but in any case should you have any questions do email/ Wats ap me and I will respond. 

 

One of our Phillip planners  told me there is an eagle sanctuary only 30 minutes from Taiping in Samasa . We will surely visit this and post an eagle on Facebook.  ( To be a successful investor you must hunt like the eagle)

Have a Merry Christmas, Bill