Janet Yellen's testimony

17 July 2017

Dear Fellow Investor,

The whole investing world was focused on Janet Yellen’s testimony before the US congress last week. Will she raise rates and by how much? Will she start quantitative tightening ?  Gold, stocks, interest rate futures, currencies, bonds were subdued looking for guidance and direction.  No one really knows  what her policy might be. It appeared to be a wait and see response by the investment crowd.

Personally the only thing that matters to me is what can I do to protect those who trust me to manage their assets.

I do not know the future and anyone who claims to know is a charlatan. 

As a value investor we do not need to know the future. Value investing is like choosing the boat you wish to take a trip in. We have a choice. We need to choose our assets carefullhy. We need to choose boats that are seaworthy for our investing journey.

Many shares are like this leaky boat. They keep dropping with no chance of recovery.

Why not choose shares like this solid ocean liner ? These are proven, well managed companies that reward their shareholders. They deliver the goods.

In my experience, if an asset can’t be valued with any certainty, and the price doesn’t justify the expected returns, then it is an unworthy vessel.

This Wednesday, we will be visiting a company in Ipoh for a possible investment  The financials are solid – net cash- and they have recurring revenue in several currencies with a diversified and large customer base.  .

Our analysts will be speaking with the management to find out their catalyst and plans for future growth  This share is off the radar screen of the main stream analysts and not well covered. If by our analysis the odds favour a purchase we will purchase for our loyal clients. 

Visiting a company and reviewing their financials are in our control Nothing is sure but it puts the odds in our favour. This is why I don’t waste time listening to Bloomberg/ CNBC commentators or what Janet Yellen is pontificating on. As they represent the insiders and smart money what they say is likely to mislead and cause you loses. Their agenda is not to benefit  you but to benefit themselves.

Invest well and grow your wealth

Bill

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