james grant tried a similar strategy in japan but shut it down after a decade because it didn't work. such a strategy requires not only reliable data, but strong corporate governance law, which sadly in lacking in singapore
^^ MOS to Valuation. Absolute valuation better than relative valuation. Though most assets are relatively valued except cash.
Good article indeed. Use disposable income for value stock investing in a few years horizon. Can reduce one's psychology towards panic selling due to market fear.
Been a roller coaster ride the past week.
From the looks of it. You guys must be quite happy the last couple of days picking up some bargain?
Opportunities are plenty for those who missed it. Sound investment is akin to baseball as the saying goes. Don't be dragged into momentum.
Cheers and TGIF,
Hsq.Cap
Twitter: @hsquare_capital
https://hsquarecapblog.wordpress.com
Got some bullets now. Preparing for the next wave of this roller coaster ride. Fasten your seat belts everybody. [emoji1]
Hi guys, just wanna follow up on the posting on LSV, 1994 research on value investing strategies.
We have received several queries as to the efficacy of the LSV, 1994 straegy in current markets. We remember also that on of our Value Budds suggested that this might not work in Singapore due to its poor corporate governance.
Our response is that such strategy, while extensively demonstrated in the U.S., picks up large portion of small cap stocks. These small cap stocks are generally subjected to poorer corporate governance. In this regard, we do not view that corporate governance is a major factor as to why this cannot be applied to Singapore market. Conversely, poor corporate governance may present value opportunities -- Micro-Mechanics is one such example.
Today, we came across a blog post that might answer the above queries. Read it here:
http://tinyurl.com/nta69fl
Cheers and TGIF,
Hsq.Cap
Twitter: @hsquare_capital
https://hsquarecapblog.wordpress.com