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Hi fellow buddies,
just interested to find out how value investing has "invaded" your life.
Besides equities, does the value investing mantra affect your other buying habits or living habits as well?
Like houses, cars, food etc?
It seems to me that it Warren Buffet lived a simple life, probably guided by his value mind set.
I find myself affected somehow and being more "cheapo" now. 
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Ever since I came across value investing, being cheapo might have been the local lingo for it.
I find myself looking for real value in everything that I can, the best deals for food and other needs/wants. It has been a common mainstay since, things are what we bought and value is what we get.
Always looking for that intrinsic value of things but darn, sometimes we need to pamper ourselves abit and get some geez out of life.
P.S. love and romance is too irrational to use concept of value investing for it.
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For me, if i have set aside a certain amount of money for stocks investment, even if i have made good profits, i wont withdraw any money to spend, i will attempt to compound it further.
If i need to go on a holiday or buy a new handphone or whatsoever, i will have to go save it through my ongoing salary. Money that is channelled into investments will never be taken out. i intend to keep it this way until i am in my forties where i believe my dividends alone can be used to support my simple lifestyle
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22-01-2014, 11:39 AM
(This post was last modified: 22-01-2014, 12:47 PM by felixleong.)
yup, value investing has changed my life a lot.
even small purchases I would consider if its value for not.
example when hanging out in shopping mall, I tend to go for food court or fast food (try to spend less than $10) instead of spending more in a fancy restaurant.
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> yup, value investing has changed my life a lot.
> even small purchases I would consider if its value for not.
> example when hanging out in shopping mall, I tend to go for food court or fast food (try to spend less than $10) instead of spending
> more in a fancy restaurant.
It has certainly.
1. Ah Kun or Toastbox kopi - $1.50 - $2. I drink Kim Guan Guan kopi and make at home. $0.15 per packet. Very good taste.
2. Never go Crystal Jade or Sakae Sushi. Super $$$. I go Chinatown market makan zi car. 2 pax can eat $20 or less 3 dishes. The kopi there 80cts. And the xifu there very good, wok hei good good.
3. Food court??? I go market hawker centre.
4. Butter - Does SCS deserve a 65% premium? My mum use cowhead for the pineapple tarts 30 years.
5. Toiletries - Instead of Guardian or Watsons, I go People Park market or discount shops. The gilette blades is 40% cheaper.
When I go restaurants, I go to www.jubao.com.sg The food is excellent and good value. It is in sembawang though.
The good deals are there... if one accepts no aircon and less convenience. and some making at home.
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22-01-2014, 02:53 PM
(This post was last modified: 22-01-2014, 02:54 PM by specuvestor.)
Just to clarify that I dont think value=cheap though thats what the media been promoting
A $100 shoe that last 3 years is better than one that cost $50 that last a year. The tricky part is of course guesstimating the useful life of the assets. If life was that easy.
Though MOS is mainly a function of price, but the other caveat is to buy a good company at fair price rather than a bad company at good price. The latter may be cheap but lots of skeletons and issues which OPMI may not have the ability realise the value.
Value is useless if you cannot realise it. No point getting the cheapest widget in the world and keeping it in the storeroom. Or an extremely high tech gear at cheapest price only to realise you only know how to use 1 or 2 functions.
Value investing thought me to look at things based on what they are worth, rather than what they are priced. What makes sense and what doesn't
Before you speak, listen. Before you write, think. Before you spend, earn. Before you invest, investigate. Before you criticize, wait. Before you pray, forgive. Before you quit, try. Before you retire, save. Before you die, give. –William A. Ward
Think Asset-Business-Structure (ABS)
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> A $100 shoe that last 3 years is better than one that cost $50 that last a year.
Er... many ladies tell me they like to change the design. 3 years? 6 mths too long... no thanks to the shoe makers!!!
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(22-01-2014, 03:16 PM)Contrarian Wrote: > A $100 shoe that last 3 years is better than one that cost $50 that last a year.
Er... many ladies tell me they like to change the design. 3 years? 6 mths too long... no thanks to the shoe makers!!!
That shows that value(not only beauty)is also in the eyes of the beholder. This reminds people me collecting all sort of things have their own value system.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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22-01-2014, 04:14 PM
(This post was last modified: 22-01-2014, 04:34 PM by zf87.)
About spending habits:
I am not sure if it is due to value investing, but it is not hard for me to live within my means. So that I can save enough for investing.
As specuvestor mentioned, its not about price alone. Its quality/price ratio matters.
When investing, I am looking for low debt, low risk tickers. Good-Looking blue chips are not preferred due to their high valuation.
Having a shopaholic wife, over the year I have been learning how to identify/distinguish the lasting household materials, such as medical grade stainless steel, genuine leather, nylon, solid wood are much more durable than normal steel, coated leather/polyurethane, particle board. And I only buy when the absolute price is low enough, regardless what the percentage off. For food, I will think about balanced nutrient/price ratio, and I find my taste preference actually shifted by the knowledge of nutrient of particular food.
Having said that, when the quality of life goes well, one may also consider comfort/appearance/taste/texture as well. Currently, quality/price ratio is my primary concern, while comfort/appearance/taste should just be acceptable.
--------------------
About self-improving
I strongly agree with "latticework" concept of Charlie Munger. Investing is about predicting the future. Its multi-disciplinary. The more knowledge you acquire, the more models you understand, the more accurate the prediction of the future. I was only interested in math and natural science, with almost no interest in humanity or social science. After paying a handsome tuition fee to the stock market during the financial crisis, I began to read books on finance, accounting, economics, management, psychology, etc and I began to see the connections between all these. I would say (value) investing have changed the way I am looking the world.
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lol, I have a shopaholic wife too.... over the years, I am glad that some of my thinking has rubbed off her.
It is not entirely just looking at cheap things though.
Quality matters to me too.
Men's shoes especially. Nowadays, my shoes last me at most 1-2 years, and cost me about $100+.
I remember buying a pair of Gucci when I was younger, cost me about Euro140, lasted me 5 years.
And I walk everyday with them.
Cannot imagine shoes now can last that long.
And since it won't last me long, I decided to buy $70 shoes now.
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