Caveat Emptor

The intelligent investor is one of the first books I have read on investing theory, outside of conventional EMH finance academia. This book is just as captivating the last time I revisited this book as compared to the first time. The ideas behind it are timeless and relevant regardless of bear markets and bull markets. The Net Net approach is one of the first screens I adopted for SG market (only chews made the cut). After reading Ben Graham biography and quotes at the later part of his life and cross referencing with other sources, I realized the limitations of net net approach to investing, like the existence of accounting fraud and need for wide diversification, value traps and need for active efforts in liquidation especially for cash burning companies. The improvement of technology in screening and retrieval tools as well as more widespread investing knowledge made the opportunities of strict formula based value investing increasingly exhausted. Peter Lynch, Joel Greenblatt a...

SGX had fell to an unprecedented low after the announcement of HKEX collaboration with the MSCI index providers. SGX clearing and settlement segment has been largely stagnent and is largely banking on its derivative businesses for future growth. The proposed entry of HKEX into the China futures index derivatives business hammered down SGX to attractive PE ratios. Although I do not utilise derivatives in my portfolio, to my knowledge professional fund managers use derivatives as price insurance, whereby they will cover their downside risks through combination of call put options or other exotic instruments. Treasury departments and cross nation organisations utilize forwards and swaps to hedge against FX risk, the adventerous utilise them as short term betting tools to reflect their views on the market, and some simply take a risk neutral view by utilising certain combinations to reflect the underlying performance of an asset / index . I intiated a mid conviction position as my initi...

This is an update on my recent sale of apple stock. I had a recent buy on apple stock into the price decline of Apple stock at USD 169, I have sold it off following the hitting of my price target at USD 176.78. Despite maintaining a general stance of buy and hold for the long term, there were several red flags that prompted me that Apple best days might be over. Original thesis : Stalwart stock.  Buy apple as market sentiment unruly battered down apple stock due to hearsay and speculation of poor earnings report.  There is significant margin of safety from buying a cheap stock that has a strong brand, impressive cash hoard, and ability to maintain its profit margin due to its incredibly sticky ecosystem and users.  There is potential new innovative products that Apple can develop and sell at a premium due to strong branding. Revised thesis : No growth stock.  Looking at its numbers, Handset sales have declined steadily and Apple is mainly mi...

Berkshire B - AAA rated stock or un-analyzable Conglomerate Berkshire Hathaway probably needs no further elaboration. Known as the world's most expensive stock, it is a physical manifestation of what happens to a company which can fully reinvest its high rate of return (almost without dividend payout) and let compounding run its full effect. A company that was rejected by the efficient market hypothesis as a six sigma event, sticks out as a sore thumb to academics and a wonder to capitalists around the world. Throes of shareholders make their yearly pilgrimage to Berkshire Hathaway (including notable professional fund managers) to get some nuggets of wisdom from the oracle of Omaha.  To be frank, I was only recently made aware of Berkshire B stock while poring through the essays of Warren buffet, a book on the profound knowledge on investing, which is not easily communicated through speeches or third party authors alone. The depth of insight surpass third party Buffettlogy a...