In 2012, I wrote an article [on my first site QuantitativeValue.org] detailing my investment thesis for Popular Holdings. With the recent management buyout offer, I’ve included the initial article written in April 2012. I will conduct a post-investment review in my next post.
Popular Holdings is a common enough household name in Singapore and in this post, I will bring you through my thought process when I examine a business. I have attached the operations and financial review from their latest annual report, and for the sake of brevity, I will only be providing some financial ratios.
My own view is that you should never look at the price of a business before deciding whether to invest in it. The price action (or market capitalization) reveals very little about a business, and that should be your last port of call. Price is what you pay, value is what you ......
