Author: The Asia Report

How should you invest when the world is going to hell?

A few people commented to me that the market looks “volatile” & “dangerous” in the next few months and that we should wait and see before things get better. Well, I understand how it might seem. The unrest in the Middle East, Libya, the Tsunami in Japan, the end of QE2 etc. The list goes on and on. However, I would like to point out three problems with trying to predict the future. Firstly, why didn’t you tell me this 3 months ago? Secondly, considering that you couldn’t predict the market 3 months ago, why would you be right...

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Free Report – 7 Highly Profitable Habits of Warren Buffett

Hi Guys, As promised, I just did up a free report on the 7 Highly Profitable Habits of Warren Buffett. Most of you might be familiar with his investing style already – buying great companies on the cheap. However, I realized that many people did not fully comprehend the “mental game” aspect of his investing style. This is extremely dangerous. If your going to adapt his investing style, please be sure that you know the full picture! There are two aspects of it – the technical and the mental aspect of it. This report covers the essentials  of his investing mindset....

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Updates Galore Ahead!

Hi Guys, Just to keep you updated, I am currently working on a new project which will be released in due time. First off, I am sorry to say that Buffett Investing will be shut down soon as it is draining too much of my time to work on two websites at once (This is further worsened by my programing skills.. or lack of it!) However,  I will be setting up a newsletter dedicated to Warren Buffett. Some of things I will include are updates on his portfolio changes, notable news & even research reports like the one you...

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Fundamental Analysis Report – Microsoft, Sleeping Giant?

Microsoft is one of my favorite companies. It has a solid track free cash flow generation, decent growth and almost no debt on its balance on its sheets. And best of all, its trading at a ridiculously low valuation over fears that its lagging behind in the technology industry. Look here if you want a great presentation by Whitney Tilson on Microsoft: Whitney Tilson Presentation on Microsoft While I agree that some of the criticism of Microsoft is valid, people seem to be forgetting that Microsoft has an incredible franchise with Offices and Windows. I won’t go into the...

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Fundamental Analysis Report – Johnson & Johnson

I just updated my main webpage to include a financial report of Johnson & Johnson so do check it out. Johnson & Johnson Report Also, its come to my attention that I didn’t update the Lubrizol Corporation link properly on the right hand side of the page. I have since corrected it. Before investing in pharmaceutical companies, its important to know the pros and cons of the industry. Big pharmaceutical companies typically have wide moats and attractive financial strength. Most of the global pharmaceutical  companies post Returns on Invested Capital of > 20%. They also have little debt on their balance...

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Valuation Methods – Discounted Cash Flow Discussion

The entire idea of valuing companies using a discounted cash flow method is based on the premise that the value of a company is the value of its future cash flows, discounted by an appropriate rate to the present. Now, DCF models provide a very elegant solution to the valuation problem. Simply plug in your implied growth rate, your starting cash flow and tadah! You have the intrinsic value of a company. However, what most people do not realise is that DCF faces several challenges that can potentially overvalue or undervalue a company. The first challenge is that DCF...

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Fundamental Analysis Report – VICOM

There’s an active discussion regarding VICOM at one of the local investing forums – Value Buddies. Let’s go through the qualitative aspects of the company first. I think VICOM has a narrow economic moat at the very least for its vehicle testing services. The good thing about their business is that their profits are recurring. You have to get your car certified with them at some point in your lives. Lets look at the fundamentals of the company. Revenue & Earnings VICOM has been growing its bottom line really well over the past few years. Its average annual growth...

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Fundamental Analysis of Challenger Technologies

As promised, I did up a financial report of Challenger Technologies. Let’s go through the qualitative aspects of the company first If your living in Singapore, you pretty much know everything there is to know about Challenger. Its a simple business model – selling a wide array of electronic goods throughout the island. Loo Leong Thye has done an impressive job of growing Challenger from its store in Funan to recognizable brand around Singapore. I really like businesses that have great franchise models (think McDonalds, Starbucks, KFC). A proven success formula is always preferable to a business model that...

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Updates – Challenger Technologies, Warren Buffett, optionsXpress

Hi guys, sorry for the lack of updates. I been busy with my other projects. I will be updating my site more regularly over the coming weeks so keep a look out! I will be hoping to cover the valuation of more Singapore companies (if you have any requests do let me know) that I find attractive. I plan to do fundamental analysis on Challenger Technologies next. Interestingly, something that has struck my attention is the valuation of quality companies in the US. By quality, I am talking about the great brands like Johnson & Johnson, Intel, Microsoft etc....

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Company Analysis of ComfortDelgro – Hit or Miss?

Famous for their blue & yellow Hyundai Taxis, ComfortDelGro (C52) is a household name to most Singaporeans. However, many will be surprised to learn that it is in fact one of the largest transport companies in the world. It has operations all around the globe – most notably in the United Kingdom, China & Australia. 2005 2006 2007 2008 2009 Revenue (S$’ Mil) 2497 2786 3013 3120 3052 Operating Expenses (S$’ Mil) 2192 2479 2676 2842 2702 Profit attributable to Shareholders               (S$’ Mil) 202 245 223 200 220 Return on Equity (ROE) 15.4% 17.6% 15.3% 13.2% 13.5%   The...

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