The Straits Times published an article written by Lim Chow Kiat, the group chief investment officer of GIC, on 21 Apr 15. This article was among others which perpetuates the long term view of capital deployment. The rest of the articles can be found here. I would like to talk about some of the points that Mr Lim mentioned in his article which are very similar to BigFatPurse’s perspectives.

1. “[O]pportunities in price-value divergence”

BigFatPurse strongly believes that there are inefficiencies in the pricing of businesses in the stock market, in some stocks but not all. Firstly, not all the listed companies get equal attention or coverage by the analysts and media. This is apparent in small cap stocks and information about changes and developments in these companies are not passed down uniformly to the market participants. This result in incorrect pricing of these stocks and a potential possibility that ......