17 March 2018
Dear Fellow Investors,
“Value investing requires looking beyond the headline numbers” is the title for Tong’s value investing column in this week’s Edge.
I might add look beyond the headline news and announcements and look at the business you might invest in.
The CNBC news parrot in the above illustration proclaims, “The bottom’s in… The bottom’s in, The bottom’s in, Buy, Buy, Buy !
What I do mean is by all means look at the numbers and ask if the financials are sound. Are sales, earnings and revenues rising ?
If your investment idea passes the financial filters, then examine the quality of the business. Quality is a subjective issue. It includes honesty of management. Does the management operate prudently for the benefit of the shareholders? Does the company have an investment moat to protect itself from competition ? Do they finance acquisitions via organic cash flow or via cash calls ? Do their acquisitions synergize with their existing business or are the managers trying to build an empire ?
Much of this information can be known by attending the AGM, reading the annual and quarterly reports as well as visiting the company. Every listed company has a website and that will give you a lot of information.
Isn’t this a better way than listening to the parrot ?
If you want to know more about Quality Value Investing:
On Friday 23 March, I will be conducting an in house Quality Value Investing Course at my office in Phillip Capital. It will be from 9 to 5 30 and carry 10 CPE points for licence renewal.
The focus will be on selecting Quality companies using qualitative analysis.
We will use the IVSA price and volume filter for timing buys and sells.
This is a great bargain of only RM 192. No one in town will give you this price for a CPE 10 point course with such take away value.
Others charge RM 1000 + for a similar syllabus.
We have only 9 seats left so if you wish to attend, please ask the administrator. Tan Tze Mee and she can send you a brochure.tzemee@poems.com.my
Invest well and grow your wealth
Bill
Today’s critter is a beautiful leopard from the Namib dessert. It is highly endangered and keeps a watchful eye for predators at the watering hole.
This comment has been removed by the author.
ReplyDeleteWill you accommodate break-time to allow Muslims attending your class, to run for Friday prayer on that day?
ReplyDeleteIs the course open to the public (those not seeking CPE points)?