A journey of thousand miles begins with a single step 千里之行，始于足下。

[¯|_(ツ)_/¯]

Good evening, valuebuddies.
A calm and relaxing weekend.
Wish all healthy and keep a happy heart.
Enjoy: Rod Steward "Have I told you lately that I Love you?"


My heart was filled with Love as I write this post.

Gratitude - to all valuebuddies who had helped me in my investment journey.  I'm still learning and I'm really happy that everyone's sharing exceeded my expectations.

Thank you, once again.

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Among many investment advice or wisdom, I think that invest based on our own area of competence make perfect sense.

I mean, it's quite easy, for those company/industry/sector that's fall within your area of competence, not only you're familiar with these companies performance, you would also had better guesstimate when there are major/structural changes, how would these changes impact the company future.

Exactly opposite.
When investing outside our competency, then a lot of time, we will need to rely on PE/PB/FCF etc guesstimates.  At best they served as a rough beacon, at worst, all these ratio was outdated due to some recent changes.

I recalled once, I got a stock idea from valuebuddy BK.
When I first time, download and read the annual report.
Holy! Is this my company annual report?

Everything described in the AR is so familiar. Everything is literally what I meant.

Immediately, I can tell what are some of their matrix below par and which are still consider ok to me.

Of course, I did not buy the stock or follow up because this company is sub-par.   

That's the first time, I fully appreciate why Warren stressed the important of investing in your area of competence.

There is nothing to loss actually.   



Gratitude.