Long Term Value Investing

5 March 2017

Dear Fellow Investor,

We are focused on long term value investing.  In the last 2 months we have recovered from a challenging 2016 and our overall average performance in 2017  is  a positive return of 13.6 % . This has more than covered our small losses of 2015/2016.

In 2016, we took several small losses- why?  Conditions changed.

Some were management and tax issues,  one a rights issue which diluted the share holder equity and most had heavy insider selling. Surprise excise tax rises on tobacco hit BAT so we sold . BAT has continued to plunge so if we did not sell we would have lost more. 

Insiders know their companies better than us and they act first to dump their shares on the unsuspecting public. We held on to our winners and that has made 2017 a profitable year.

Investing is like going to a movie theater. When ever we attend a movie or any public event with a large crowd the first thing to do is look for the exit door. Chances are nothing will happen but what should we do if there is a riot or fire ?  If we mentally pre plan, that could save our life.   We know exactly where to exit.

Investing or trading is also a  probability game. We are dealing with unpredictable human beings with hidden agendas so we must always be on guard to avoid becoming a victim of their scams.

To put the odds in our favor we focus  on companies with low PEs, rising earnings, low debt and increasing cash flow.  We prefer low profile  mid cap off the radar screen companies run by ethical management.

Our scanners are picking some of these companies up in Singapore, Hong Kong and Malaysia.

Do give me a call if you wish to join us or add to your existing EPF/ PGWA account .

Invest well and grow your wealth

Bill

This smart cat, just like an investor takes the opportunity, a juicy fish. I have a dog named Rover who is a super Dalmatian mixed with pit bull and he is an expert in catching rats, snakes and other pests.  He silently lies in wait to ambush his prey- just like a good investor. We live in a terrace house and behind is a jungle  -like the stock market-with a lot of juicy prey to keep Rover happy.