Buy-and-hold works - up to a point

[CityFarmer]

A few observations around the theme that context does matter.

o In the US, with capital gains tax, buy and hold does have an edge over buy and switch but the same does not apply in Singapore as we do not have capital gains tax. Similarly, share buybacks and capital gains has a tax edge in the US over dividend investing that is not found in Singapore.

o There is a difference in scale between the US and Singapore i.e. large caps in Singapore are only equivalent to small to mid caps in the US and small caps in Singapore are below pink sheets in the US. So a concentrated portfolio in Singapore small caps may have very different characteristics from a concentrated portfolio in US small caps (maybe more equivalent to micro caps).

o During Graham's era, nett nett stocks were still available, not so much during Buffet's era. Also Buffet has the advantage of insurance float which means slow growth pre leverage to him is equivalent to fast growth post leverage (as long as the growth is steady).

In the final analysis, you should read all the advise of the giants of value investing that have come before you, contextualise it to your own unique circumstances (Singapore market characteristics or personal situation) and think long and hard as to what makes sense and works for you. After all, in the end, it is your money that is at risk .

P.S.: For the record, I am mainly a practitioner of Joel Greenblatt's style of investing with an almost fully invested at all times orientation (80 to 100%).

It seems that only few of us here practice fully invested style, as far as i am aware

I am interested to know more on Joel Greenblatt style, is there a good book to start with?

[nsengkia]

CityFarmer,

Pls refer below for info on Joel Greenblatt's investing style:

1. The Book:

http://www.amazon.com/Little-Still-Marke...0470624159

The Website:

http://www.magicformulainvesting.com/

2. His latest Book:

http://www.amazon.com/The-Big-Secret-Sma...pd_sim_b_2

The Website:

http://valueweightedindex.com/

3. His older but more interesting book:

http://www.amazon.com/You-Can-Stock-Mark...pd_sim_b_2

4. Another website co-started by him that maybe of interest to you as well:

http://www.valueinvestorsclub.com/value2/

All books are available from NLB. And if you google his book with the keyword "pdf", you may be able to find a bootlegged softcopy on the internet

P.S.: His track record when he was running the hedge fund Gotham Capital (when it was open to external $) was better than Buffet's. Now that it is closed to outside money, his track record is no longer available in the public domain.

[CityFarmer]

Thanks nsengkia for the info. It should be able to keep me occupied for a while.