Uncertainty and fear are friends of the buyer

30 Oct 2016

Dear Fellow Investor,

On Thursday, November 3-6, I will be in Singapore  for a company visit for possible investment, an investment briefing with Charles Lee the Income portfolio manager with Phillip Securities and on Saturday I will attend the Motley Fool Investment Conference.

Motley Fool Singapore  is an independent market analyst which  is not affiliated with any stockbroker and has a good track record since founding 2 years ago. It is an exclusive membership organization with the goal of maximizing profits for its members.

When they launched their service , David Koo, the CEO dressed up as a court jester with a fool hat.

He shared with the audience the reason for the costume and the company name

He shared that In the middle ages many countries were ruled by kings who had absolute power of life and death. The court jester or fool whose job was to entertain the king  was the only person who could tell the truth without fear of having his head chopped off.  

  

Since joining them a two years ago , Motley has told the truth. They focus on high quality companies that pay dividends and are managed by honest and focused managers.

Their team  looks for value that may be overlooked by the investment crowd.

They feel that there are certain  shares in Singapore, Hong Kong  and Malaysia that are currently undervalued due to extreme pessimism and uncertainty.

 Uncertainty and fear are friends of the buyer.

They also as we do look for consumer companies, with low or no debt, recurring income, an investment moat, companies which can raise their prices with inflation and a proven track record of sales and earnings growth.  They like simple easy to understand businesses. They avoid speculative highly geared companies run by cowboys.

I am sure Warren Buffet would recommend this service.  

The last week has been very quiet- low volume- low participation as we wait for the US election results on 9 November.

For the shares we hold, I do not think we will be affected much. Once the results are final- Trump or Clinton - the uncertainty will be removed and we should have a rally going into year end. The reason is simple. 

Fund managers will in concert all over the world push the markets up to get their performance bonuses which are payable based on the results of calendar 2016. 

Invest well and grow your wealth
Bill