Happy New Year 2018

31 December 2017

 

Dear Fellow Investors,

 

It looks like 2018 will be a good year for us just like 2017.

 

If we focus on companies with strong underlying fundamentals that trade below intrinsic value as we did in 2017 we should enjoy above average returns.

 

While in Langkawi last week, while watching the ocean waves I read a short but very powerful book by Ben Stein.

 

 

Ben is a value investor and a personal friend of Warren Buffet. He has built a fortune over the years by accumulating quality dividend paying companies with solid fundamentals.  

 

Ben is also a financial planner who advises his clients on how  to build wealth. His message is simple and he shows how to leverage on the expertise of great business managers by buying shares of their companies. It is how to leverage on capitalism without the headaches of running a business. 

 

With Trump in power we are seeing a major shift in the US from socialism to capitalism. 

 

With lower taxes across  the board, infrastructure spending, Obama care phase out, welfare and social spending cuts, a 37 % cut in corporate taxes and foreign aid cuts, the average citizen is seeing more money in their pocket. This is money that will stimulate business and boost the world economy.

 

With continued low inflation and low interest rates in most of the world how can you not be an investor ?  

 

Gary Dorsch, of Global Money Trends sums it up:

 

“In 2017, the biggest drawdown for the Dow Industrials was -2.4%. As a result of the nearly $2-trillion of liquidity injected into the world’s money markets by central banks this past year, virtually all of minor market “shocks,” such as North Korea’s detonation of a hydrogen bomb, proved to be fleeting and an invitation for the Buy the Dippers to jump right in, and fill the gap within days if not hours. The typical SPX trajectory around domestic political and geopolitical shocks since World War II has historically been of sharp, short-lived selloffs with relatively quick subsequent rebounds. Here is the average pathway for a Pullback: Down a median -5.7%; Then 3 weeks to find a bottom; Another 3 to recover prior levels; And significantly higher out 3-months (6.5%) and 12 months (13%)”

 

Please have a happy, healthy and prosperous  year of the dog

Bill

 

There has been progress on our puppy adoption drive. 4 have now found homes. There are 8 adorable ones left.

 

From the owner:

 

“They are starting to get active and their Mum finds it hard to feed esp the bigger white ones push the others away. We are supplementing the smaller ones with puppy formula but Mother’s milk is best. She sleeps outside their main box as they are getting larger and active when they see her.”

 

If interested to adopt, please whats ap/ call me 012 685 1207 and I will reply with the name of the   owner and contact number.  The owner lives near the Securities Commission in Damansara.