You would have read the news about incidents where regulators have to step in to investigate fishy business conducted by the managements. https://www.straitstimes.com/business/kimlys-top-executives-arrested-for-alleged-involvement-in-giving-false-or-misleading https://www.channelnewsasia.com/news/business/no-signboard-ceo-arrested-and-on-bail-amid-probe-into-share-11496908 https://www.businesstimes.com.sg/government-economy/allied-techs-missing-s33m-law-firm-says-partner-jeffrey-ong-may-have-ordered Now how are we able measure the quality of the people who manage the companies that we are putting our money in? Is there a way to spot the bad … Continue reading The Importance of Assessing Management Quality
With the trade war escalating, stock markets globally have taken a severe hit. Inability to answer all these questions related to market behaviour, policy and economics with conviction at this stage is reflective of the clouds of uncertainty hanging over markets, policies and the economy. One way to handle this is to question if it's a … Continue reading The Safe Bet Here is Continued Uncertainty
What are some of the qualities in a company that Warren Buffet is known to seek? Well, there is durable competitive advantange, positive free cash flow, high return on equity and of course, he like companies with high enough earnings yield that appear to be trading at a good price. Listed on SGX, we have … Continue reading Vicom (SGX:V01) – The Most Buffet-esque Company in SGX?
Analytical models are just a way to express your thoughts. Analysts spend so much time building highly complex models, complete with revenue builds and an absurd number of line-items to determine their price targets. Now, although these are absolutely useful in understanding a company's financial condition, margins, growth, etc, I feel that they are extremely … Continue reading Why You Should Take Analyst Recommendations With A Sentosa-Sized Grain of Salt
I’ve noticed a tendency, particularly among younger people, to think about “financial crisis” as being interchangeable with “recessions.” In the US, many people describe the 2008 recession as a “financial crisis” and have think that we needed to bail out the banks in order to save the economy. But in reality, the financial sector in … Continue reading Sweden Economic Outlook – Financial Crisis or Recession?
What a horrible week for the markets with all the US-China trade war, Brexit and the Huawei saga. To keep me from being depressed, I told myself to quit looking at the markets and news for the time being. And if I ever feel the need to bet, skup the market and have a go … Continue reading Powermatic Data (SGX:BCY) – Full Year Results 2019
One of the methods which I use to value to stock is the Benjamin Graham's formula from The Intelligent Investor. The original formula from Benjamin Graham's book, Security Analysis, is image from Wikipedia.com where V is the intrinsic value, EPS is the trailing 12 month EPS, 8.5 is the PE ratio of a stock with … Continue reading Graham’s PE Formula of Intrinsic Value