Dear Fellow Investors,
Jack Bogle, founder of the Vanguard Group advised investors to stay focused on buying good businesses for the long haul.
Value is created not by market prices but by intrinsic values and by businesses who put their money to work to earn a steady return in a competitive world.
Bogle cited earnings growth as his main filter.
Jack Bogel, master value investor and multi- millionaire
This value investing method requires patience and sometimes under performance compared to the momentum style. Momentum profits are wonderful until the market falls over the cliff. Value stands the test of time. Warren Buffet the greatest value investor of all time has under performed the last 2 years but I would still bet on him
Case for buying quality/ value shares:
The only alternatives to shares presently are property, bonds and money market funds
With inflation greater than bond and money rates bonds and FD are guaranteed losers. Property is an alternative to shares but there are problems with liquidity and the cyclical nature of the property market.
I do however like Singapore and Hong Kong REITS as they offer liquidity, dividends and steady growth.
Singapore/ Japan/ Thailand equities/ property are recovering while Hong Kong goes from strength to strength.
The KLSE continues to lag but there are selected values for us to accumulate.
Monthly chart of Kepple Corp.
For the last 2 years, Kepple has been consolidating with an upside bias. Although they are diversified into China property they are also into oil rig building and the slightly positive .trend in crude oil supports them for now.
Kepple has a strong balance sheet and has survived the oil price collapse.
We currently hold Gas Malaysia which has the Malaysian cooking gas monopoly. It is a simple, well managed quality company with low debt .
We have avoided for the last 3 years the highly leveraged up stream oil companies . High debt has killed many of them.
I am very happy to inform you that we have hired for our team a share analyst. She has a masters degree in engineering but prefers to work in the investment industry. Many prominent fund managers/ analysts have engineering degrees.
She will help in our search for quality companies .as well as monitor the shares in our portfolios
Invest well and grow your wealth
Bill
A taper at the Negara Zoo. Compared to other countries, the Negara Zoo provides a lot of room for their animals to roam and enjoy themselves
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