Caveat Emptor

  Betting on Alphabet I reinstated a mid conviction position into Alphabet C stock on 21/09 as the Nasdaq corrected from its previous lofty valuations. Key Thesis of Alphabet is that it will be a continual compounder and continue to generate sufficient advertising revenue from its proprietary search engine and Youtube ads, and generate future lumpy returns from its Alpha-bets. My revised understanding is that the long term compounding thesis is not affected and it is able to continually develop its innovative product catalogue. The slight margin of safety compensates for the risky nature of the company. Because the company is so difficult to value due to its <Call Option> nature, the best way to invest in Alphabet is to treat it as a charitable contribution and not be emotionally affected by its hits and misses , and let the geniuses in google run the company uninterrupted. A key reminder to myself as I mature as an investor, is to not view Tech companies as a blob and use s...

Grabbing a bite of the Fast Food market I initiated a mid conviction position into the secondary offering of Yum China on 10/09/20 at the price of HKD 395.80. I believe there is a strong growth story and recovery in consumer spending in the Chinese market. CEO Joey Wat has already proved to be capable in turning around the aging KFC franchise in China and introduce a culture of innovation, technology integration, and operational efficiencies to grow the franchises. What I like Simple understandable free cash flow generative business. From an operational cash flow perspective,  YumCn has powerful food products and franchises that already have a good track record of success like KFC, Pizza Hut, Taco bell. Unlike most food companies that employ a globalisation strategy and failed to enter target markets (Dunkin in India, Starbucks in Australia), YumCn is focused on glocalisation to adapt its products to local tastes. This is important as Northern Chinese and Southern Chinese had diffe...