Author: InvestingNook

10 Things You Need To Know Before Investing

Very often, I find investors are more excited about the act of investing than the acquisition of the wisdom. Investors are more fixated on short-term gratification than to focus on generating long-term sustainable returns. However, we are very fortunate to be made aware of a fool-proof philosophy by Seth Klarman, that will guide us through our investing journey – if we remain disciplined in what we learn. In this article, we will be sharing with you the 10 important things that you must know before investing like Seth Klarman. These nuggets of advice are taken from his famous book...

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Key Attitudes Required For Investing

After reading numerous books and articles about value investing, you probably have realised that value investors love to reiterate the importance of having the right psychology and philosophy. It dictates our attitude towards learning and investing. Bearing in mind about how fickle-minded and manic the market is, we are a lot more conscious about how the market is feeling and what we should be doing. However, value investors should take a step further beyond having a good grasp of the market psychology. Just because the market is overreacting, it does not mean that the securities affected are now undervalued....

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TheEdge Investment Forum 2018: Q&A

Having presented at TheEdge Investment Forum 2018, I thought I share some of the questions asked at the end of the presentation with the public. While these may not be all the questions being asked, I thought I share the top 3 questions here for everyone’s discussion and learning. Is deep value truly passive or do I have to constantly hunt for new positions? Comparing to Growth At Reasonable Price (GARP) investing, buying into and holding a good business and management.  Firstly, unless you are leaving your money in an ETF, actively picking stocks to purchase can never be...

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TheEdge Investment Forum 2018: Q&A

Having presented at TheEdge Investment Forum 2018, I thought I share some of the questions asked at the end of the presentation with the public. While these may not be all the questions being asked, I thought I share the top 3 questions here for everyone’s discussion and learning. Is deep value truly passive or do I have to constantly hunt for new positions? Comparing to Growth At Reasonable Price (GARP) investing, buying into and holding a good business and management.  Firstly, unless you are leaving your money in an ETF, actively picking stocks to purchase can never be...

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HOW TO DEAL WITH MARKET PEAKS AND EXUBERANCE

The trading bells ring and yet another record high has been made. Now, being the disciplined value investor you are, you remember the countless words of caution about how you should be extremely wary when markets valuations are high. Several self-proclaimed oracles are beginning to forecast about the impending doom the financial markets are heading towards. Valuations are back to pre-crisis levels. The media chanting daily about how we are in the longest bull run ever. You could almost feel the big market correction heading your way and yet what your gut is inclined to do is probably not...

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ARE YOU PREPARED FOR THE NEXT FINANCIAL CRISIS

Value investing is an intellectually and emotionally demanding discipline where the latter may be arguably more important than the former. Hundreds of hedge funds helmed by the leaders of the industry fall prey to the inefficient market when the financial crisis hit. Cycles after cycles, we possess the wishful thinking that “this time it will be different, Company ABC is far greater than its peers and it would continue growing, justifying its high P/E ratio”. However, time and time again, only with the onset of a financial crisis, do we see that value prevails. In this article, we will...

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HOW SHOULD VALUE INVESTORS VIEW INVESTMENT RISK

Returns, returns and more returns. If you have been following the financial media and analyst reports very closely and blindly, it is likely that your stock research might have been influenced to be upside-biased. The finance industry places a disproportionate emphasis on investment returns rather than investment risk. However, we have greater control over the risks we take than the returns we chase. Hence, our first concern should always be risk management and not investment returns. If we can take care of our downside, the upside will naturally take care of itself. Now let us explore how experts and...

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WHEN SHOULD YOU BE SELLING A STOCK

As deep value investors, we invest a lot of time and brainpower into deriving the fair value of a company. We first figure out our preferred investment strategy and find companies that fit the criteria. However, buying has always been the easy bit. When should we actually be selling a stock? Selling a stock is made especially difficult if you have big unrealized losses on the stock. Imagine your stock being down 50%, one’s mindset would be to just hold it and wait for it to recover. Before we dive into when a value investor should be selling, we...

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Thoughts on BBR Holdings

Recently, I attended BBR Holdings 2017 Annual General Meeting and below are some of my thoughts. Decline in Revenue Despite a challenging FY2017 where we see a decline in revenue figures for BBR Holdings, margins have improved significantly from 5.05% to 15.1%. This is due to a better project mix of construction projects in FY2017 and better profit margin for a number of specialised engineering projects in Malaysia that were completed. Decline in Order Book One major concern was the lack of any new order book wins. The Company’s order book would be completed this year and this is...

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Singapore’s Tower Crane Leasing Industry

Following our previous post on our thoughts on the privatisation offer of Tat Hong Holdings, we thought we share some of our findings on the Tower Crane Leasing Industry within Singapore. Within Singapore there are 3 main listed players – Tat Hong Holdings, Sin Heng Heavy Machinery and Tiong Woon Corporation. While all 3 players are in tower crane leasing there are slight differences in terms of the industries that they supply their cranes. For example, Tat Hong only supplies to the construction industry whereas for Sin Heng and Tiong Woon, they service the Oil & Gas and Offshore Marine...

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Thoughts on Tat Hong Holdings Privatisation Offer

This article is our thoughts with regards to the SGX announcement here with regards to the pre-conditional voluntary conditional cash offer by Tat Hong Holdings. Tat Hong Holdings was a company that we once looked before given how we believe that after the property cycle it would lead on to the construction cycle. I have attached Tat Hong’s historical price to book ratio chart below. As seen in the figure below, it shows the average price to book ratio along with the +/- 1 standard deviation for Tat Hong Holdings. Overview Tat Hong Holdings is a crane owning company engaged in...

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TwinPeak Capital’s 2Q17 NAV Results (Excerpts)

Below are excerpts from the quarterly report of TwinPeak Capital, a private family office we manage. (Excerpt) December 31, 2016 TwinPeak Capital NAV (the “TWIN”) increased 2.97% versus a 1.27% loss for the iShares Core MSCI Pacific ETF (the “MSCI Pacific”) for the quarter ending December 31, 2016. The following table compares the TWIN’s unaudited performance (after fees) with that of the MSCI Pacific for various periods ending December 31, 2016. For the quarter ended December 31, 2016, the Company outperformed the iShares Core MSCI Pacific ETF (the “MSCI Pacific”) by 4.24 percentage points. From inception, the Company outperformed the MSCI Pacific by 15.82 percentage points...

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Catching up with Petra Capital Management

On January 20, 2017, we had the chance to catch up with Chan H. Lee, who happened to be in Singapore for business, over lunch. We had previously interviewed Albert H. Yong and Chan H. Lee in Hong Kong during the Asia Value Investor Conference 2015, which can be found here. Albert and Chan are the managing partners of Petra Capital Management (“Petra”) – a long-term deep value-oriented firm based in Korea. Since its inception in September 2009, the Petra portfolio has yielded an annualised return of 14.9% net of all fees. The KOSPI Index, on the other hand,...

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Review, Reflections and Randomness

As the curtain closes to what has been an eventful year, the time has come for many for their end of year portfolio review. Reviews and reflections are handy – in these turbulent times, it is imperative that we remain steadfast in our convictions and beliefs. We also need to learn; for in investments, it is the fastest learner that wins. Here are some questions that you can consider for your reflection/review: What was your investment return for this year? How have you organized your portfolio and why is it in this order? What is your best stock in...

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Pavlov’s Bulls – Are We in Bubble Territory?

With the S&P 500, Nasdaq and Dow reaching record highs this week, I am minded to share this 2011 letter by Jeremy Grantham – titled Pavlov’s Bulls – on asset cycles and bubbles. As a value investor, he raises a couple of points that Grahamites will find interesting. We shouldn’t ignore bubbles “I’ve also been pretty irritated by Graham-and-Doddites because they have managed to deduce from a great book of 75 years ago, Security Analysis, that somehow bubbles and busts can be ignored. You don’t have to deal with that kind of thing, they argue, you just keep your...

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