Find Your Edge

Analysis, Circle of Competence, Contrarian, Independent thinking, Investment Process

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 […]

Bullish but Bearish

Contrarian, Decision Making, Investment Process, Psychology, Risk

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 […]

An Analysis on Lafarge

Analysis, Competition, Contrarian, Market, Risk

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 […]