LHT Holdings

[ksir]

hi ksir,

Thanks for your views. Indeed, views from participants of the market are generally diverse. This is why we see that we have "sufficiently efficient market". And if everyone is generally tilted towards bullish or bearish, then we are going to get to the extremes and generally the extremes are where money is made/lost as the market gets more inefficient (than efficient).

We know that the odds of making money is governed by this equation --> odds of been right ("A") x how much you make when you are right ("B"). When certain companies get really cheap, "B" may get really high, especially if they are backed by real assets/functioning business. So the key is assessing "A". Just that sometimes for "certain companies", the odds would be akin to buying 4D. Sure, you may win after buying long enough (or waiting in our context). But my personal preference is that in the absence of a market crisis, i would put more emphasis on "A" than "B".

Finally, we can't control how other people think/act about such labels. Just because they misuse it, doesn't mean I m going to misuse it or those labels ain't useful for me.

P.S. In my earlier post, I left out my opinion on Tencent. In general, I haven't studied Tencent in detail but how the share price moved isn't a big consideration. It is definitely more attractive as an investment now compared to a few years back when its share price was higher - The company is now unlocking value by distributing its investments as dividend in specie and peak regulation has passed. On aggregate, I don't think it is any trap, previously or now.

Hi weijian,

Think we're just playing diff game.

To me, price is what you pay, value is what you get.

I assess the company value based on my understanding of the company business model, earning power, balance sheet, management, risk etc etc. 
When the price is significantly lower than my calculated value range and after comparing other available options (my other investments, risk free % etc etc), I then invest in the company. 
As simple as that. 
If my assessment of value turns out to be wrong, then so be it, learn the mistake and try to improve my assessment skill.

Value trap/ growth trap is the same as value or growth labels to me (the label even got value/growth with it).