Author: 8% Value Investhink

Market Trading Tactics – Part 1

I bought this book titled Market Trading Tactics for ten years ago and left it on the shelf. It stood there ever since, collecting dust. At the back of my mind, I didn’t want to read it. I couldn’t figure out why I bought it in the first place. I am an investor and as an investor, there was no need for trading tactics. In my mind, traders and investors were enemies. We were the Allied Powers and them, the Axis Powers. The markets were our fighting ground. So how can I read a strategy book devised by the...

Read More

Chart of the Week #2: Bitcoin Bubble vs Today’s Markets

Bitcoin has been touted as the new currency. Since government legal tender notes may not mean much if they are all bankrupted and we really don’t want to go back to using gold to barter trade, one revolutionary solution might be bitcoin which is based on the newest, baddest blockchain technology that ensures safe encryption, traceability and eliminating the need for intermediaries like banks, credit card companies that had creamed more than their fair share of transaction since time immemorial.       Bitcoin had done crazily well over the last four years. It is said that someone who...

Read More

Chart of the Week #1

Investment is pretty much about ideas and insights. Ideas about innovation, trends, moats help investing think through their stocks and find out those that could ride the trend while keeping competition at bay. Insights help us see what others are not seeing yet. A lot of ideas and insights come from charts and hence this series is to highlight charts, tables that bring across these clearly. In this inauguration issue, we look at the demographics of Asia. The chart above shows that Asia is seeing peak working population in the next decade. With the exception of India, most Asian...

Read More

Singapore’s Conundrum: MOE’s Compounding Mutation

Spoiler alert! If you intend to watch Akira (1988). Once in a while, on this infosite, we discuss Singapore’s education system, which, in my opinion, is mutating uncontrollably into something that is ready to implode any time. While researching for this post, it reminded me of this Japanese cult anime called Akira that depicted an apocalypse future where kids with psychic ability (like 100 times more powerful than Star Wars’ Jedis) wreaked havoc and destroyed cities. In the scenes below, the kid with psychic ability was not able to control his power and mutated into a huge monster that ended...

Read More

SGX’s Biggest and Smallest

Once in a while, it’s worth doing some interesting stock taking to see rankings, compare charts and tables just to take note where things stand. Today, we want to look at SGX’s biggest and smallest, just for the fun of it. We did a partial exercise like this a long, long time ago. Back then there were 700+ stocks listed on SGX. Today, as things stand, we still have 700+ and as per previously, most stocks are not investable for various reasons. We shall look at them later. Singapore’s biggest listed names The first table looks at the best...

Read More

2017 First Half Review – Part 2

This is a continuation of the previous post. The last post we talked about the revival of tech brought about by multiple rounds of quantitative easing (QE). QE flooded the world with cheap money which ultimately went into investments in these tech startups (well, at least some part of it). There is a Cambrian explosion of new ideas and business models. We saw the rise of Grab and Uber, upending taxis. We have AirBnb for room-sharing, then office sharing, then now home sharing for people who don’t want to buy properties ever. We have food delivery making waves and...

Read More

2017 First Half Review – Part 1

This year started with a lot of renewed hope after the disastrous 2016 where we saw markets whipsawing investors. Brexit was supposed to crash the market, but it didn’t and Trump wasn’t supposed to become President and he did! The markets then reacted by going up 15%, when everyone thought it should go down if Trump ever won. In retrospect, the Trump rally continued into 2017 and we saw the S&P500 hitting all time highs and most markets, following US footsteps, are up for the year. We have passed the first half of 2017 and hence it might be...

Read More

Return on Investment for 38 Oxley Road

With the whole Singapore intrigued with the 38 Oxley Road saga, it is hard to avoid the discussion, be it during lunch, on Facebook and Instagram and worst of all with international friends. This saga could be a watershed moment, marking the downfall of a little red dot, if it is not resolved amicably asap. But since this is an investment knowledge infosite, let’s leave the politics to others to comment. Today we shall focus on the investment aspect.   The investment story of 38 Oxley Road is also quite intriguing for those who would be interested in investment...

Read More

Lessons from Omaha – Part 3

This is a continuation of Part 1 and Part 2. In the last post, we discussed that ETFs should be part of every astute investor’s portfolio and since tech is becoming so important, maybe tech ETFs might also make sense. Also, if 90% or more of all investors never ever beat the index, then wouldn’t be buying the index i.e. buying ETFs (equity index funds) be the best option? So that’s coming from the Oracle of Omaha, Warren Buffett himself. In this post, we go back to the centuries old business of insurance. As most students of value investing...

Read More

Lessons from Omaha – Part 2

This is a continuation of the previous post. Okay, as promised, here’s the investing lessons that we can learn from this year’s Berkshire Hathaway’s AGM (Annual General Meeting for Shareholders). The first lesson came as a big surprise for many. It came about when Warren Buffett was asked why did he advise his heiress (second wife) to buy S&P500 rather than continuing to put her money in Berkshire Hathaway after he is no longer around. He was dumbfounded for about a second which afterwards he recovered and gave a succinct answer: The S&P500 represents the best of the best...

Read More

Lessons from Omaha – Part 1

A trip to Omaha, Nebraska, USA is like a pilgrimage. Muslims hope to visit Mecca once in a lifetime. In the olden days, Christians went to Jerusalem on crusades. As value investors, well, we should pay homage to the world’s greatest investor – Warren Buffett aka the Oracle of Omaha, by going to Berkshire Hathaway’s Annual General Meeting (AGM) for shareholders, maybe as many times as possible before things change. For the uninitiated – Berkshire Hathaway is Warren Buffett’s investment vehicle which was a textile company that he bought 52 years ago. It went bankrupt but he used it...

Read More

More on Sustainability

This is a continuation of the last post. In the last post, we discussed how we should focus on the big picture and pull the big levers to move things. In diet, it’s about cutting meals and cutting meat and putting in the hours in the gym or hit the road running 20 km per week. In investing it’s about understanding business models and putting in the hours reading annual reports. Needless to say, investing is also about margin of safety – the biggest lever, the most important concept. We are really fortunately to be living in the 21st...

Read More

Think Big and Think Sustainability

There are a few tough things in life, one of which is losing weight. It is said that 95% of diets ultimately fail and losing weight successfully is one of the hardest things to do, along with quitting tobacco, kicking off addictions and investing successfully. As such, having some mild success with both (diet and investing), I would like to share lessons which we could draw from one to the other.   I think there are two big concepts: 1. Think Big: Don’t sweat the small stuff, pull the big levers! 2. Think Sustainable: If it cannot be sustained,...

Read More

Buying Singapore Savings Bonds

Investing is a fascinating game in a sense that no formula ever works all the time. There is no “Bao Jia” or sure wins. There are no programmable solutions, no absolutes and we must always break the rules to win. There is also no such thing as never. Warren Buffett himself broke his own rules so many times, in order to win. He said he would never buy tech stocks, yet he bought IBM and Apple.  He concluded airlines won’t make their cost of capital, yet he bought airlines!   Airlines, the one industry that was guaranteed to lose...

Read More

2017 High Dividend List – 1H version!

The annual high dividend list is here! This will be the first list for 2017 with a second list coming out closer to the end of the year so as to shorten the waiting time for these highly popular lists. Over the years (this is the 8th year), these lists had become an attraction of its own, drawing lots of traffic for the site. Although the rest of the stuff is actually pretty good! :) Final Fantasy, one of the most popular game series in the 1990s and 2000s might be an analogy that some readers could relate to....

Read More

Like us on Facebook

Follow us on Twitter