(26-07-2014, 10:17 PM)FA+TA Wrote: Today is Dennis Ng one year death anniversary. If his SIFU is Mossie, I have compiled some Mossie's contribution in SharesInvestor.com and I want to share with all Valuebuddies.
Mossie's MY STORY was very interesting and inspiring to many Valuebuddies. His other sharing is HOW TO BECOME SUCCESSFUL INVESTOR. I hope these 2 articles can be useful to all Valuebuddies and boost the members to 3000.
Note: Can moderator ensure only members can download the file?
Interesting article. I had been in forums on & off since the days of FISH. Did Dennis go by any moniker?
Allow me to add my 2cts:
1) Mistaking bull markets for brains. This is so very true that in a bull market everyone thinks they are God's gift to investment
From analysing companies to fund managers to seeking advices, see how they do over one cycle, BOTH bill and bear markets. That is the REAL ALPHA, not some statistical number
2) The old adage of kicking the tyres are not foolproof: in my early days i invested into a Taiwanese motherboard makers that has been doing high end boards and organising gaming events. U can see their products in SLS everywhere. Turn out that business was sound but the chairman was siphoning money out which is why they are always cash tight. Those who invest in emerging markets including our neighbours will know visiting plants or factories on a planned tour is not exactly representative. Learn how to read and INTERPRET financial cash flows and how management historically operated their business including corporate actions is the only way to avoid this pitfall.
3) IMHO and definition, Smart money are NOT the syndicates. I classify them as evil money
Think Blumont. If u want to follow evil money, make sure u know the source well. Hot money are trend followers. Dumb money are those who dont know what they are doing ie follow tips etc. Smart money are those business owners and fundamental guys... LISTEN to what they DO
4) Catalysts are very important, including technical indicators, and once u recognise that u will know why i also say timing is important (not trading). There is a reason why underdogs are underdogs, in a world where the winner takes all. In order for underdogs to become Alpha there needs to be a catalyst, including new products or initiatives, their competitor missteps, reorg, etc. Otherwise u are just trying to buy underdogs for beta and hope it works.
5) recognise there are at least 3 layers to analysing the company: asset, business and structure. Just focusing on one is not going to help. Many arguments arise because they are essentially talking about different layers, and not a complete picture
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)
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