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Agree.
I think the last page (pg 12) of his third lesson implied what you mean.
I had a chance to watch his first lesson when it just released and I'm very grate to see the rest of his lesson.
My take away:
1. Value vs Growth company
Many people think that it's either a value or growth company. However, we need to be mindful that value and growth are actually conjoined at the hip.
2. PB/PE vs Intrinsic value
Older VB might use PB/PE or something out of the AR to filter a value stock.
Younger VB might use the AR as raw materials to calculate Intrinsic value of a company.
Both are just trying to estimate the value of a company.
Both methods could be use to determine the MOS before buying starts.
However, I felt that these are just a rough gauge/gate.
I would rather to be roughly right than absolutely wrong.
What I meant is these MOS is just another indicator/signal to buy a undervalue company. Whether you spend a lot of time calculating or just spend minimum amount of time to do back of envelope calculation, both are acceptable practice.
In another word, it does not means that one who do complex and input more parameters to the calculation will turn out/up with more success.
Own view.
3. Area of competence
To me, this is actually the main gist of all value investor.
A lot of value investor (here in VB.com) works with/in IT.
Me too.
The awakening moment for me is when I read the AR of a particular listed IT company in Singapore, wow, it's like reading my own company AR.
I would immediately know why they revenue is increasing and whether this is sustainable. I would also know what are the area that they do well and what other area they could do better too.
That's mind-boggling experience.
For the record, I din't invest in the company because it's sub-par.
Being an insider helps and I could imagine that if I'm a banker and I'm reading those AR of Singapore Bank....
Anyway, I think having an area of competency would be the minimum requirement before anyone put in a serious amount of money in stock market.
Thanks W, appreciate your sharing.
Stay home and stay safe, everyone.
I think the last page (pg 12) of his third lesson implied what you mean.
I had a chance to watch his first lesson when it just released and I'm very grate to see the rest of his lesson.
My take away:
1. Value vs Growth company
Many people think that it's either a value or growth company. However, we need to be mindful that value and growth are actually conjoined at the hip.
2. PB/PE vs Intrinsic value
Older VB might use PB/PE or something out of the AR to filter a value stock.
Younger VB might use the AR as raw materials to calculate Intrinsic value of a company.
Both are just trying to estimate the value of a company.
Both methods could be use to determine the MOS before buying starts.
However, I felt that these are just a rough gauge/gate.
I would rather to be roughly right than absolutely wrong.
What I meant is these MOS is just another indicator/signal to buy a undervalue company. Whether you spend a lot of time calculating or just spend minimum amount of time to do back of envelope calculation, both are acceptable practice.
In another word, it does not means that one who do complex and input more parameters to the calculation will turn out/up with more success.
Own view.
3. Area of competence
To me, this is actually the main gist of all value investor.
A lot of value investor (here in VB.com) works with/in IT.
Me too.
The awakening moment for me is when I read the AR of a particular listed IT company in Singapore, wow, it's like reading my own company AR.
I would immediately know why they revenue is increasing and whether this is sustainable. I would also know what are the area that they do well and what other area they could do better too.
That's mind-boggling experience.
For the record, I din't invest in the company because it's sub-par.
Being an insider helps and I could imagine that if I'm a banker and I'm reading those AR of Singapore Bank....
Anyway, I think having an area of competency would be the minimum requirement before anyone put in a serious amount of money in stock market.
Thanks W, appreciate your sharing.
Stay home and stay safe, everyone.