Undervalued Trading

15  August  2020

Dear Fellow Investor,

Yesterday, on the KLSE  there was a shift from high growth, high PE  speculative shares including small and mid cap counters into Maybank, Public Bank and Genting. Maybank, Public Bank and Genting are high quality dividend paying blue chips which are unloved by the crowd.

They are trading at undervalued levels and effected by the Covid . Casino traffic has dropped while net interest margins have been under pressure effecting all the banks.     It is difficult to find any positive analyst reports on these shares. News flow is extreme pessimism.  

Opportunity ?

The opportunity is Non-Consensus Investing or being right when everyone else is wrong by Rupal Bhansali

I was attracted to this book because Bhansali worked with George Soros for 10 years as an analyst. Her job was to select shares for his hedge fund.

Her book reveals insights into how to select quality companies trading at discounts to their intrinsic value. A metaphor of hers that makes the point , “a non-consensus investor treats markets as a shopping mall where things go on sale as opposed to an auction house where you must bid the highest price to get what you want.“ 

George Soros trained her to consider first before investing what can go wrong. Soros  focus was on risk. Most investors focus on reward.  His coaching led her to become a successful fund manager handling a multi billion dollar value fund for Arial Investments.

Tomorrow morning at 11 AM will be holding a zoom meeting.  I will review Rupal Bansali’s book and some of the important takeaways which apply now in our local markets.

Below are the details. Please have your questions ready,

Invest well

Bill

This bald eagle brought down a US Government's drone in Michigan. The eagle is a lone hunter just like a non consensus investor.