Author: Business Investor

Business Valuation

What is Business Valuation and How do i value the business that i am holding? The fluctuation of my portfolio value from one month to the other has been forcing me to think hard and thoroughly about my valuation method in valuing businesses. Sunningdale’s share price had reached its peak of about $2.40 per share a few months ago and has dropped down to $1.40 per share as per current price (my paper profit has also dropped down by $60k). AEM’share price had reached its peak of about $1.90 per share a few months ago and has dropped down...

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My Investment System Reflection – 2

What kind of Selling Strategy should i implement in my BSPA? Before buying into a company, i should do my homework to read the company’s quarterly & Annual reports to derive my Intrinsic Value of the company for 4 years ahead. How do i do that? (1) I am buying this company for it falls into which category of my Investing? 1. Value Growth? 2. Deep Value? 3. Dividend? (2) Which industry does this company falls into? 1. Food & Beverages? 2. Consumer Products? 3. Manufacturing? 4. Semi-conductor? 5. Information Technology? 6. etc (3) What is the industrial PE...

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My Investment System Reflection – 1

My portfolio value had reached its peak at about $530k mid of April and fell all the way down to about $380k mid of June. It was just 2 months away, my portfolio value had been up and down for 30% in variation. This tells that investing in stock market will never be easy. It involves human emotion: greed, fearful, daring, worry, eagerness, willing and unwilling, and all macro issues around us. As for me, i am doing my best to create a System for my Investment – will call it BSPA. A system that is able to work...

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My Sytem Modification 1

1. Investing is a PROCESS, a Journey and it is NOT a destination. 2. NEVER add/average UP a company with ROE lower than 15% (low ROE)! 3. Do NOT let GREED taking over our calculation based on data. Buying a Company: The 1st thesis of investment: (1) Value Growth? – good balance sheet, good business model, good management, ROE > 15% (2) Deep Value? – good balance sheet, good management, stability of business/revenue, ROE < 10%. (3) Asset Value? – good balance sheet with undervalued price to asset value. (4) Dividend? – good balance sheet, good business model, good...

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Portfolio Value as per July 2018

No. Counters No of Shares Market Price per Share (SGD) Total Value (SGD) 1 AEM 48,000 $1.100 $52,800.00 2 Avi-Tech 100,000 $0.380 $38,000.00 3 Best World 50,000 $1.310 $65,500.00 4 Chasen 300,000 $0.076 $22,800.00 5 Innotek 190,000 $0.400 $76,000.00 6 Sunningdale 60,000 $1.360 $81,600.00 7 Tat Seng Packaging 50,000 $0.690 $34,500.00 8 Cash $24,556.80 TOTAL: $395,756.80 (1) Bought back Chasen after some considerations. (2) I have been doing some self reflection for these past few weeks to restructure my strategy again. My buying – selling – buying Chasen acts have not been really pleasing to my Investment Strategy. – Reading “Rich Dad’s Prophecy...

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Warren Buffett’s Gems

Some of Buffett’s gems which i wish to keep reminding myself: “If you buy things you do not need, soon you will have to sell things you need.” “Do not save what is left after spending, but spend what is left after saving.” “If you don’t find a way to make money while you sleep, you will work until you die.” “You only have to do a very few things right in your life, so long as you don’t do too many things wrong.” “I don’t look to jump over 7-foot bars; I look around for 1-foot bars that...

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Portfolio Value as per June 2018

No. Counters No of Shares Market Price per Share (SGD) Total Value (SGD) 1 AEM 48,000 $1.150 $55,200.00 2 Avi-Tech 100,000 $0.390 $39,000.00 3 Best World 50,000 $1.320 $66,000.00 4 Innotek 190,000 $0.355 $67,450.00 5 Sunningdale 60,000 $1.330 $79,800.00 6 Tat Seng Packaging 50,000 $0.725 $36,250.00 7 Cash $46,656.80 TOTAL: $390,356.80 (1) I have divested Chasen. (2) Total dividend collected for HY2018: $8,580. (3) Accumulating my war chest...

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Portfolio Value as per May 2018

No. Counters No of Shares Market Price per Share (SGD) Total Value (SGD) 1 AEM 12,000 $1.480 $17,760.00 2 Avi-Tech 100,000 $0.405 $40,500.00 3 Best World 50,000 $1.240 $62,000.00 4 Chasen 400,000 $0.690 $27,600.00 5 Innotek 190,000 $0.365 $69,350.00 6 Sunningdale 60,000 $1.270 $76,200.00 7 Tat Seng Packaging 50,000 $0.800 $40,000.00 8 Cash $16,042.75 TOTAL: $349,452.75 (1) I have divested all my 800 Super with a profit of about 15% including of dividend. I think 800 Super business is still good, but the ratio between cash and debts is really too low, so i have decided to divest it....

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My Portfolio Management – Building & Sitting On CASH!

Investing for me: owning a business Holding period: infinite (or longer time horizon) Monetary gains: working towards achieving my 1st million of profit thru investing as soon as possible Strategy: 1. To search for brilliant business with good economic moats, being managed under good management team, and is offering at bargain price. 2. To continue building and sitting on cash so at any moment an opportunity arises, i can act fast! (I need to really work harder on this!) “It takes character to sit with all that cash and to do nothing. I didn’t get top where I am...

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What will i do with my Sunningdale shares?

Sunningdale share price has been dropping sharply for these past few days from the average price of $1.90 on the 2nd April to $1.27 as per yesterday closing price (about 33% drop). When the share price of a counter i am holding has been moving drastically up or down in a short period of time, i will have to reassess my thesis in the company (my based will only be on the fundamental of the company for long term hold): (1) The sustainable business model attracts me to own this company for longer term, (2) Solid balance sheet, consistently...

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Turning cents into dollars (small change book 2)

I just finished reading “Turning cents into dollars (small change book 2) by Goh Eng Yeow. This is a compilation of articles written by Mr Goh Eng Yeow into a book. Below are some of the contents from the book – to remind myself: (1) Doing good brings goodness Compassion is a two-way street. Those touched by compassion will reach out to help others. Indeed, many go beyond donating money or goods to adopting charitable causes, giving generously of their time to teach poor children or help out at an old folks’ home. Our lives would be assessed, not...

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Portfolio Value as per April 2018

No. Counters No of Shares Market Price per Share (SGD) Total Value (SGD) 1 800 Super 20,000 $1.140 $22,800.00 2 AEM 12,000 $6.960 $83,520.00 3 Avi-Tech 100,000 $0.485 $48,500.00 4 Best World 50,000 $1.720 $86,000.00 5 Chasen 400,000 $0.071 $28,400.00 6 Innotek 190,000 $0.440 $83,600.00 7 Sunningdale 60,000 $1.830 $109,800.00 8 Tat Seng Packaging 30,000 $0.800 $24,000.00 9 Cash $5,084.60 TOTAL: $491,704.60 (1) I have divested all my Trek 2000 shares at the price of about $0.24 per share. Taking a loss of about $3,500 excluding the broker fees. Trek 2000 is still a good company which has potential...

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Some notes for my investment journey…

The company with the highest profit margin is by definition the lowest cost operator, as the lowest cost operator has a better chance of survival if business conditions deteriorate. When investing, we are looking for a relatively High Profit Margin for a Long Term Holding stock and a relatively Low Profit Margin for a Turn Around stock. How inflation will effect the share price? Inflation will lead to low earning or profit to a company. Inflation means too much money is in the market that leads to money’s value become lower, material cost become higher. With higher overhead, profit...

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Portfolio Value as per March 2018

No. Counters No of Shares    Market Price        per Share             (SGD) Total Value (SGD) 1 800 Super 20,000 $1.100 $22,000.00 2 AEM 12,000 $7.150 $85,800.00 3 Avi-Tech 100,000 $0.505 $50,500.00 4 Best World 50,000 $1.640 $82,000.00 5 Chasen 400,000 $0.069 $27,600.00 6 Innotek 130,000 $0.420 $54,600.00 7 Sunningdale 60,000 $1.830 $109,800.00 8 Tat Seng Packaging 30,000 $0.795 $23,850.00 9 Trek 2000 Intl 100,000 $0.265 $26,500.00 10 Cash $3,753.98 TOTAL: $486,403.98 The reporting season for financial report ending December 2017 has just ended last week. As usual, i have screened through...

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