Value Investing: The Secret in Beating the Market 23 April 2014

Transcript

1. VALUE INVESTING
 
 The Secret in Beating the Market
2. Disclaimers This presentation is for educational purpose ONLY
3. 14.13%
4. 24.14%
5. Value Investing is … Price Value Price DIVERGENCE Time
6. Investment is an operation which requires 
 thorough analysis, promises a safety on principal and an adequate return. Operations not meeting these criteria are speculative.
7. INVEST SPECULATE TWO PATHS IN THE STOCK MARKET FIRSTLY…
8. Take a chance
9. On Sound Footing
10. Investing is about 
 Owning a Business FIRSTLY… WHAT IS INVESTING?
11. CAN BUY OR NOT?? FREQUENTLY ASKED QUESTION
12. CAPITAL 
 AT RISK CAN 
 BUY OR 
 NOT? Is it a 
 GOOD Stock? Is it the 
 RIGHT Time? TIMING
 RISK FAQ : “CAN BUY OR NOT”?
13. THE ULTIMATE GOAL MINIMIZE YOUR RISKS
14. 6 CATEGORIES OF STOCKS 1. Investment Grade Stocks 2. Emerging Grade Stocks 3. Cyclical Stocks 4. Turnaround Stocks 5. Sunset/Failing Stocks 6. Venture/Speculative Stocks LOW HIGH BUSINESS
15. Value Investing Criteria 1. Net Profit 2. Dividends • How Often in a Year? • And When? 3. Cash Flow
16. DIVIDENDS And When? How many 
 times a year?
 VALUE INVESTING:
 IMPORTANT CRITERIA NET PROFIT CASH FLOW
17. 
 Price Dividends Net Profit / Loss BUSINESS 
 PERFORMANCE VALUE INVESTING:
 FACTORS AFFECTING STOCK PRICE
18. Price Value
19. Price Time BUY SOME MORE BUY SOME SELL SELL SELL ONLY APPLIES TO 
 GOOD STOCKS VALUE INVESTING:
 STRATEGY TO REDUCE TIMING RISK
20. Some Differences
21. Contradiction # 1 Market is Efficient Market is inefficient
22. Contradiction # 2 Doing Your homework is useless Doing Your homework is important
23. No Proper Tools X Insufficient Knowledge X
24. Contradiction # 3 Investing is Easy
25. Gambling is Easy
26. Getting Con is Easy
27. “Successful Investing isn’t rocket science it’s harder” Michael J. Moore, portfolio manager
28. Contradiction # 4 Don’t Put All Your Eggs in one Basket
29. No Eggs Thank You, Only Tennis Balls
30. Contradiction # 5 Market Correction is terrible
31. Contradiction # 5 Market Correction is a beautiful thing
32. Which Stocks are Eggs? Which Stocks are Tennis Balls?
33. Buying Tennis ball At Cheap Prices
34. THANK YOU