Sunday, September 27, 2009

Value investing not an exact science!

Value investing was meant to be simple and basically built around common sense and logical thinking. On the surface, it is easy to understand and anyone who has read any books on value investing or Warren Buffett would agree with me. However, is it really that easy to put to practice. I have to be honest, there were times when my patience was tested. Stocks that have been picked on the merit of having value underperformed those of absolutely no value, tempted me to go with the herd and invest in the "hottest stocks". To be able to overcome this temptation takes great conviction and belief. So for those aspiring to adopt value investing as your investment strategy, you need to first build some confidence in yourself and your stock picking skills.

Investing was never meant to be rocket science or confined to people who have CFAs or financial backgrounds. You do not need to be able to calculate complicated ratios or do advanced financial modeling to invest. Over time you will realise that investment research is often a laggard and by the time the research has been released to the retail market, the stock has already lost most of it's upside potential.

I am not going to write a whole page on how to invest in value stocks, all I am going to do will be to give you ideas and maybe breakdown the rationale for you. I am no Warren Buffett or Franklin Templeton, I am just a Simple Value Investor who is trying to give small retail investors like you and me, a level playing field as institutional, high net worth and corporate investors.

So stay tuned for more ideas and tips from SVI.

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