21 May 2016
Dear Fellow Investor,
Dolly and I just returned from a great holiday to Taiwan. We went with
Reliance Travel and with Reliance all you have to do is show up at the airport.
They do all the rest. The weather was cool with slight rain, the food was
tasty with much variety, the hotels were comfortable, the internet fast and the
service impeccable. The Taiwanese are very friendly and welcoming people.
Costs were very reasonable and not much more than Malaysian prices.
 |
|
Our group posing in front of the Grand Hotel in Taipei . The Grand Hotel has photos inside of distinguished guests such as Elizabeth Tailor, Charles Bronson, Margret Thatcher and even the first PM of Malaysia. It was built by Chang Kai Shek the first president of Taiwan. |
In the quiet trading of the last 10 days nothing much has happened. Every
night I checked our portfolios and there was minimal movement. We did
however collect some dividends so net were a positive result. It feels good to
make money while taking a holiday. A quality dividend share allows this.
A good friend who is a fund manager asked me for advice in selecting
shares and I will share with you what I told him.
Follow Mr Tong’s share column in the Sunday Edge. Tong is the owner of
the Edge Media Group, and business savvy.
His 2 year performance is 19 % outperforming the KLSE by over 24 %.
I am not asking you to jump in with the shares he recommends as his following
may be chasing the same shares. What you need to do is read between
the lines and get into Mr Tong’s head. Try to understand his strategy and
thought process and use this as a model to find your own shares. In this way
you are not joining the crowd.
As an example, Tong recently recommended Supermax in his column. It was
after Supermax and the other rubber glove companies had massive corrections.
I do not like Supermax as the CEO is an opposition supporter. Using
Tong’s recommendation my team researched the other glove companies and found
Kossan to be a better opportunity with stronger financials so I bought Kossan
for all our clients.
Tong’s focus is on value investing and buying shares off the radar screen
of the big funds. He likes dividends. Liquidity can be an issue so you must be
patient. He is also a Warren Buffet fan and applies Buffet principles to
his recommendations. He buys when there is blood in the streets so I suppose
most readers of his column are too afraid to buy.
My favourite book on Warren Buffet is How does Buffet Do It by James
Pardoe. It is only 148 pages and is sold in most bookshops. It is short and to
the point. I am sure Mr Tong would recommend it.
Expect our markets to be quiet next week as we wait for the US Fed to
make an interest rate decision in their upcoming June meeting. Our shares
should weather the storm no matter what the authorities do.
Invest well and grow your wealth,
Bill.
Alishan national forest in the mountains of Chiayi County in Taiwan with majestic Cedar trees planted in 1927. The elevation of the Alishan national forest is 2200 meters and you reach it by taking a narrow gauge railway to the edge of the cedar tree forest. The air is fresh, cooling, and has a unique smell. The tall trees as straight as bamboo trees and reach into the clouds. These trees remind me of solid high quality businesses that continue to grow and give prosperity to their shareholders. They are able to weather the storms, disasters, predators and still remain standing
No comments:
Post a Comment