Dear Fellow Investors
How do we maintain our objectivity during market turmoil and volatility ?
Do we do what the amateur investor does and sell high quality companies during a market panic?
Above is a chart of CVS Health Corp, a high quality share traded on the NYSE.
Notice the extreme volatility in the price as contrasted to the slow upward progress of the earnings line.
Earnings growth which is the true measure of a quality company continues to steadily grow while price swings all over the place.
Many uninformed investors would sell at panic lows although earnings growth did not suffer such as in 2001 and 2009.
These same investors would buy when prices stretched beyond value as is presently the case.
Wouldn’t it be better to wait patiently for mean reversion before accumulating? In this way risk is reduced and potential profit is increased.
Market prices as Warren Buffet would say move by emotion while earnings growth move via fundamentals. In the end fundamentals converge with price.
This chart is from Invest Like a Guru by Dr Charlie Tan, a value investor.
Our managed portfolios continue to be resilient despite the uncertainties, negative sentiment , and lack of commitment . Our dividends continue to roll in. Singapore is turning around and Hong Kong continues to run.
Donald Trump won an important victory in his budget battle and tax reform bill with congress on Thursday.
This victory paves the way for tax reform where more money goes to the people for spending and wealth creation/ and less to government.
Trump recently made a statement that enraged the atheists, liberals and Obama/ Clinton socialist big government supporters. Trump said I worship God and not government.
The US markets reacted favorably to Trump’s victory and moved to new highs.
This should spill over to Asia next week. .
Moving forward our focus should be on sectors benefiting from fin tech, automation, robotics, and disruption.
The focus of this presentation on Saturday 29 Oct 9-5 PM is on these topics. As clients you are invited . You may call the number on the flier for info or contact me.
Invest well and grow your wealth
Bill
Here is our critter of the day, a bomb sniffing labrador.
Bomb-sniffing dog fired from CIA after she loses interest in finding explosives
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