Showing posts from December, 2018

Portfolio review 2018

Portfolio review 2018 Portfolio performance analysis   Overall shape of my portfolio performance chart mirrors the STI ETF. This is due to my incorporation of it into my portfolio via monthly Dollar cost averaging.   *Amended * Overall, my IRR curve is below the STI ETF.  On an absolute return basis (Holding period Yield including dividends) , my returns are negative (-6.96%) this year . I under performed the STI ETF last year (18.1% at recovery stage ) and outperformed in this  bear market (-10.3% at recessionary stage ).  Although a part of me is engaging in mental gymnastics to rationalize that the market have not  priced in my undervalued securities and I should have performed better, my other half is fearing that I am engaging in hubris and falling into choice supportive bias .  From a quantitative standpoint, if I under-perform the market in the concurring years , I need to acknowledge that serious money can only be put into low cost index funds, and active investin

Aswath Damodaran on Valuation

Valuation in modern times 1) Evolving face of valuation in contrast with outdated financial concepts Disruption in curriculum, nature of education and valuation There isn't enough stuff in valuation to teach a structured curriculum . But that doesn't mean it cannot be done. People make valuation unnecessary complex to prove they are sophisticated and complex.  Beware of outdated finance curriculum. Not keeping with the times and need to reconcile with modern realities. 2)  Relationship between accounting and finance Accounting Finance Backward looking - Record what happened. Future Looking - project what is going to happen. Profitable Intangible assets like branding and network effects not recognized Goodwill is a premium for acquisition rather than representative of cash flows. It is not inside the balance sheet until a company is acquired. It is a plug variable purely to justify and correct the difference to balance the books. Importance of projecting future ca