In my previous post, I wrote that to achieve outperformance or above-average returns, your investment process has to be ‘unconventional’ compared to the majority. And that can only be achieved through originality, independent or contrarian thinking, and making connections from disparate information. Bill Miller, the former Legg Mason portfolio manager, emphasizes the importance of making […]
The stock market is like a pari-mutuel system of horse racing. Everybody goes there to make a bet and the odds change based on what’s being bet. Everyone can tell a quality company has better profitability, higher return on capital than a company with a terrible record. But when you look at the odds, the […]
I got a car from a nearby dealership the other day. As part of the sales routine, the sales manager offered me a 5 years warranty against any unexpected repair for $2,000. Should I take it? If the car doesn’t require any substantial repair within that time frame, that’s money down the drain. But what […]
Background Malaysia’s cement industry is getting hit hard over the past few years. Lafarge, the biggest cement player in Malaysia is down close to 50% from its peak $10 in 2015. The 4 key factors currently affecting the cement industry are: Industry headwinds Higher cost Overcapacity Soft property market Slow rollout of infrastructure projects Higher […]
When there are lots of uncertainty (has the market ever been certain?), the common advice is to stay on the sideline until things clear up. There is value in this wisdom but sometimes it can do more harm than good to your return. In stocks, uncertainty can arise from macroeconomic, industry or stock specific, and […]