Investing For Value

Investing tips 07:  I originally published this article on 27 Mac 2021 as a collection of my Quora responses. I have since revised it to also cover what is value investing, how and why it works, and the skill required.  Revision date: 23 Jul 2021. “Investment is most intelligent when it is most businesslike.”  Ben Graham

Fundamentals 15: This article explores the factors to consider when deciding how much to invest in the stock market. It is linked to portfolio issues like how much you should set aside for stocks and how many stocks to hold. "Don't look for the needle in the haystack. Just buy the haystack!"  John Bogle

Value Investing Case Study 16-2: I first covered Worthington Industries in Jun 2021 in Seeking Alpha based on relative fundamental analysis. This post continues the company analysis and valuation along the lines of my normal approach.  

Case Notes 11. This article looks at the interest element in the loan moratorium under the Pemulih plans. It disputes the message that there is no interest on interest

Value Investing Case Study 03-4: My last analysis and valuation of UOA Ltd were published about a year ago based on the financials till FYE 2019.  This is an update incorporating the FYE 2020 results.

Value Investing Case Study 16-1: I first covered Worthington Industries in Jun 2021 in Seeking Alpha based on relative fundamental analysis. This post analyses the company following my normal approach.

Fundamentals 14: There are several options to consider when you want to learn value investing. They include whether to self-study or join a class, whether to follow some system or a comprehensive course, and where to get the resources. This article explores all of them. "It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."  George Soros

Value Investing Case Study 15-2. In my Seeking Alpha article that was published in Feb 2021, I had valued Leggett & Platt at USD 50 per share. The current price has exceeded this. In this second part of my fundamental analysis of the Group, I will show that it is a growth trap.

Case Notes 10. This article shows how Malaysian property developers have performed over the past decade. It is intended to serve as the base rates for assessing property companies in Malaysia. 

Value Investing Case Study 02-3.  This is an updated fundamental analysis and valuation of Asia File based on the unaudited financial results till FYE Mac 2021.

Tips B  - Other Stock Exchanges. This is a quick guide to diversification concepts as well as case study companies listed in other countries (from a Malaysian perspective).  Look here if you want to see the infographics of Bursa Malaysia case study companies.  BTW I would like to clarify that the post is not about investment advice but rather teaching you how to invest. If you were enrolled in an educational institution to learn about investing, these would be your quick revision notes.  Revision date:  16 June 2021.

Tips A - Bursa Malaysia.  This post was first titled "How to cut down your investing time, look here".  It was then changed to "Are these outstanding Bursa stock tips - what to buy?".  I have now split the original post into 2 - one covering Bursa Malaysia companies and another new post for companies listed in other stock exchanges.  This post is a quick guide to all the investing concepts and Bursa Malaysian case study companies in the blog.  Look here if you want to refer to infographics of case study companies listed on other stock exchanges.  BTW the blog is not about investment advice but rather teaching you how to invest.  If you were enrolled in an educational institution to learn about investing, these would be your quick revision notes.   Revision date:  16 June 2021

Value Investing Case Study 15-1. I first covered Leggett & Platt in Feb 2021 in Seeking Alpha. At that juncture, the company had yet to release its 2020 results. This post is an updated analysis incorporating the 2020 financials.  

Fundamentals 13:  This article explores the concept of value investing and what it takes to be a successful value investor. It covers what value investors look for, how value investors make money, and the various value investing strategies. "I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful."  Warren Buffett

Value Investing Case Study 14-2.  This is Part 2 of the fundamental analysis and valuation of Kumpulan Fima.   

Fundamentals 12:  This an update on the risk management framework pulling together the threads from my various risk articles. However, instead of publishing it in my blog, I have guest posted it in a US value investing site ‘ Investing for Beginners .”   

Fundamentals 11:  This is a quantitative technique for comparing fundamentals. To illustrate how to use it, I have compared the performance of Tempur-Sealy with those of its peers. 

Fundamentals 10:  This is a beginners’ guide to investing in yours 20s. It covers how to invest money, the best way to invest and why to start to invest when in your 20s. This is general advice applicable irrespective of where you live.  "In investing, what is comfortable is rarely profitable."  Robert Arnott

Value Investing Case Study 13-2: This post covers the risk analysis and valuation of Tempur-Sealy, a US-listed group in the bedding sector.

Value Investing Case Study 14-1: The first part in the fundamental analysis of Kumpulan Fima. 

Value Investing Case Study 08-3: This is an updated analysis of Steel Dynamics incorporating the 2020 results. However, I have published it as a guest post in Value Investing Journey . Contents Background Is Steel Dynamics a growth trap? Value Investing Journey CSC Steel This blog is reader-supported. When you buy through links in the post, the blog will earn a small commission. The payment comes from the retailer and not from you.  Learn more .

Value Investing Case Study 13-1: I first covered Tempur-Sealy in my Seeking Alpha article “ Tempur-Sealy: Time To Exit ” in Feb 2021. The fundamental analysis then was based on the annual financials from 2010 till 2019. The company has since released its 2020 results which have been incorporated in this article.  

Fundamentals 09:  The article looks at various issues when investing in penny stocks - whether it is bad, illegal. It explores what differentiates penny stocks from others and how you can benefit from these. "Bottoms in the investment world don't end with four-year lows; they end with 10- or 15-year lows."  Jim Rogers

Value Investing Case Study 01-3: An updated fundamental analysis of Eksons based on the financial results till FYE Mac 2020.

Fundamentals 07:   This post looks at how long to hold onto stocks from various perspectives. Factors considered include capital gains, income tax, dividends, investment styles, winners, and losers. It explores whether there is a minimum holding period and what is considered a long time. “You need to know very well when to move away, or give up the loss, and not allow the anxiety to trick you into trying again.” Warren Buffett

Case Notes 09: If you have extra money, is it better to invest in the stock market or to reduce the housing loan? This is a very common question that many seemed to answer in a theoretical manner. This article looked at the Malaysian historical evidence to provide a different perspective.

Case Notes 08: The KLCI has recovered to the 2016 levels. Is the recovery reflective of the prospects and it is broad-based? This article explores these issues.

Value Investing Case Study 12-3: There are 3 listed companies within the PHB Group.  In Part 1 and 2, I have shown that the PHB Group is not a value trap.  In Part 3, I will address the question of which one to invest in if you were limited to investing in only one of them. I will also explore whether you should invest directly in the subsidiaries but with a different % shareholding than those held by PHB. 

Value Investing Case Study 12-2: In Part 1, the company analysis indicated that PHB Group is not a value trap. I will dig deeper in Part 2 to provide a more definitive answer to the question of whether PHB is a value trap or buying opportunity.  In Part 3, I will address the question that if you were limited to investing in only one of the 3 listed companies within the PHB Group, which would you select? 

Value Investing Case Study 12-1:  Parkson Holdings has 2 listed subsidiaries so that overall, we are looking at 3 listed stocks in 3 different countries.  Parts 1 and 2 will cover the analysis and valuation of the holding company.  In Part 3, I will address the question that if you were limited to investing in only one of the 3 listed companies, which would you select.

Investing tips 08:  This post is about the stock market  that has been collated from my Quora responses.  "It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong."  George Soros

Value Investing Case Study 11-2:   In my Seeking Alpha article   “Boise Cascade: Overpriced And A Potential Value Trap” ,  I used the Jan 2020 Damodaran data for my valuation.  Damodaran’s Jan 2021 data is now available and I have used them in this post. The valuation results are different from those in the Seeking Alpha article. Refer to the valuation section of this post to see how I have handled this.  

Investing tips 06:  This post about stock returns is part of a series of investing advice that has been collated from my Quora responses.  “Superior investors make more money in good times than they give back in bad times.”  Howard Marks

Investing tips 05:   This post covers my responses on constructing and managing a stock portfolio that has been  collated from my Quora responses.  “The single greatest edge an investor can have is a long-term orientation.”  Seth Klarman

Investing tips 04:  This post is about fundamental analysis covering company analysis and valuation. It  is part of a series of investing advice that has been collated from my Quora responses.  “No wise pilot, no matter how great his talent and experience, fails to use his checklist.”  Charlie Munger

Investing tips 03:  This post is about investment risk  has been collated from my Quora responses. It  is part of a series of investing advice for newbies. "Given a 10% chance of a 100 times payoff, you should take that bet every time."  Jeff Bezos

Value Investing Case Study 10-2:  This covers the valuation and risk assessment of investing in Wing Tai.

Investing tips 02:  This post is about learning how to invest. It  is part of a series of investing advice that has been collated from my Quora responses.   “The most important investment you can make is in yourself.”  Warren Buffett

Investing tips 01: This is part of a series of investing advice that has been collated from my Quora responses. I have grouped them into topics so that readers can zoom in on the relevant subject.  "An investment in knowledge pays the best interest."  Benjamin Franklin

Value Investing Case Study 11-1:  I first covered Boise Cascade Company (BCC or the Group) in Jan 2021 for my Seeking Alpha article “Boise Cascade: Overpriced And A Potential Value Trap” .  Since then, BCC has released its 2020 results. This post is an updated analysis and is based on looking at BCC post-listing financials.

Value Investing Case Study 10-1:  This post focuses on the company analysis of Wing Tai and illustrates the difference between what accountants look for and what investors look for in the company's financial statements.

Case Notes 07: Real estate is often seen as an alternative investment for many retail investors. But if you want to invest in real estate, you then have to view its risk as another financial risk. This post provides one way to undertake such an analysis.

Value Investing Case Study 09-2:  This post focus on whether there is a buying opportunity for New Toyo.  It considers not only valuation but also the risks. 

Value Investing Case Study 09-1:  This is a case study of a group with 2 listed entities whose operations are intertwined. Although the holding company is listed on SGX, this case study should be of interest to Malaysians as the subsidiary is listed on Bursa Malaysia.

Fundamentals 06-2: There are two aspects in managing any stock portfolio - construction and maintenance.  This post focuses on the maintenance of a stock portfolio while the construction issues are covered in " Baby steps in constructing a stock portfolio ." 

Fundamentals 06-1: There are two aspects in managing any stock portfolio - construction and maintenance.  This post focuses on the construction of a stock portfolio while maintenance issues are covered in " Baby steps in maintaining a stock portfolio ".

Value Investing Case Study 08-2:  I drafted my Seeking Alpha article  Steel Dynamics: Wait for the coming price decline  in Dec 2020 based on the information in Part 1 and 2 of this case study. The valuation was based on the 2020 data set from Damodaran that was updated on 8 Jan 2021.  However, to ensure consistency between this case study and the Seeking Alpha article, I have maintained the 2020 valuation data for this case study.  Since the publication of this post on 17 Jan 2021, the company has released its 2020 financial statements. An updated article incorporating this info has been published as Case Study 08-3.  Revision date: 12 May 2021.

Value Investing Case Study 08-1:  This is my first case study of a US-listed company.  It is intended to demonstrate that the approach is also applicable to companies listed in other parts of the world.  This fundamental analysis was based on the financial statements from 2010 to 2019.  Since then the company has released its 2020 financial statements. An updated analysis is now available as Case Study 08-3.  Revision date: 12 May 2021