We usually invest in beaten down stocks which can be an uncomfortable endeavour for most investors.
We often hear remarks such as “there’s no volume, nobody buys them“, “earnings are bad, they lose money!“, “sunset business“, “good assets but never get unlock“, “bad management who do not give dividends” and “this is a value trap“.
It is normal that most investors do not get what we are doing. Each investor should have their own investment style and approach as long as it works for them – delivering desired returns. We talk about our strategy so that the audience can gain a workable investment approach, if it is suitable for them.
We have shared how our investment in TSH got unlocked previously. It was a rotten stock that most investors shunned. Earnings were bad and even worsening. Company was ‘diworsifying’ into too many loss making businesses. The shares were eventually priced below the value of their freehold building at Tai Seng and the amount of cash in the bank…