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04-06-2020, 04:16 PM
(This post was last modified: 04-06-2020, 04:20 PM by specuvestor.)
Agree 50% upside not worth the risk. Like Corgigator mention, you have this one stock that jackpot. Make it count. One good case study is Oei raid on Natsteel that is hugely profitable for him, not the long suffering shareholders.
With inadequate vested interest, it is normal to assume OPMI will be passive. And that's the nature of OPMI investing which I think most of us are. And also naturally we don't mind piggy-back on an activiist or indian chief who does most of the work. But the activist is also driven by his huge stake ie vested interest. I doubt he will care if he owns 1 lot
Realistically they are not champions of fairness or altruism end of day. It's their skin in the game.
Point is if we are OPMI then we invest like OPMI and not have illusion of grandeur being deep value / activist / distressed / vulture / hedge fund etc which has armies of accountants and lawyers. But I have no doubt that there are few like ghchua or others who able to have good returns with a portfolio and right mindset/ temperament / tenacity / patience to hold long term. I've seen such people made money and also traders make money. It's a case of whether it's worth the effort for the average OPMI. Personally I don't see many value investors who actually understand how deep value works and goes to buy 50cts to a dollar stock just to realise it is losing 25cts every year.
Yes there has to be a catalyst, internal OR external. Mr market will not suddenly realise the value for no apparent reasons. If we invert the argument, if Mr Market does suddenly out of the blue realise his folly, there will be no need for activist funds nor existence of value traps.
With inadequate vested interest, it is normal to assume OPMI will be passive. And that's the nature of OPMI investing which I think most of us are. And also naturally we don't mind piggy-back on an activiist or indian chief who does most of the work. But the activist is also driven by his huge stake ie vested interest. I doubt he will care if he owns 1 lot
Realistically they are not champions of fairness or altruism end of day. It's their skin in the game.Point is if we are OPMI then we invest like OPMI and not have illusion of grandeur being deep value / activist / distressed / vulture / hedge fund etc which has armies of accountants and lawyers. But I have no doubt that there are few like ghchua or others who able to have good returns with a portfolio and right mindset/ temperament / tenacity / patience to hold long term. I've seen such people made money and also traders make money. It's a case of whether it's worth the effort for the average OPMI. Personally I don't see many value investors who actually understand how deep value works and goes to buy 50cts to a dollar stock just to realise it is losing 25cts every year.
(03-06-2020, 09:55 AM)ghchua Wrote: As for the few case examples that I have cited, the problem is that the market is not as efficient in some of these deep value stocks. Re-rating can come without the management having to initiate anything. Like government having a future master plan in some areas that the company holds land in, noises from the market that the company is selling their investment properties etc. These are exit opportunities which minorities can take note of.
Yes there has to be a catalyst, internal OR external. Mr market will not suddenly realise the value for no apparent reasons. If we invert the argument, if Mr Market does suddenly out of the blue realise his folly, there will be no need for activist funds nor existence of value traps.
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)
Think Asset-Business-Structure (ABS)