Reviewing Popular Holdings provides a useful discussion of the principles which are fundamental to our investment philosophy. One thing we believe in is investing in asymmetrical risk reward situations. This involves taking as little amount of risk as possible for the greatest return. The investment thesis in Popular Holdings as it was then fits this criterion (featured in the last post) – highly liquid assets which represented then the majority of the market capitalization, and significant earnings power that generated a significant stream of cash flow in a “old-business” with few new competitors. Insider Selling & Overriding Rules One of our long standing rules is to never invest an undervalued business if management is engaged in significant insider selling. This was the most troubling aspect of the investment thesis then. From the 2009 – 2012, Mr Chou Cheng Ngok engaged in significant insider selling of his shares throughout this time period ......