What is a value investor.

[felixleong]

haha this is a just a simple story ba, roughly get the idea can already, think no need to make it so complex haha
but of course when it comes to investing there's a lot more factors to consider

blue chips as a whole are definitely worth investing
the sti index has been giving investors an average return of close to 10%, one can get pretty decent results just passively buying the sti etf ^^

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details at http://www.spdrs.com.sg/etf/fund/fund_detail_STTF.html#

[felixleong]

Anyone knows what happened to shanghai? its index when down 5% today...

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http://www.marketwatch.com/story/japan-s...genumber=1

Shanghai stocks plunge 5.3%, weigh down Asia
Shanghai index ends below 2,000 after worst drop in nearly 4 years

[BlueKelah]

China is facing the credit crunch lah, interest rate amongst banks up to 30% overnight last week and gamen there dun care. So high gearing companies will quite jialat.

The new leaders are trying to get rid of china's excessive liquidity now rather than later. Maybe trying to kill the "shadow banking"

I guess they dun care about a recession or crash happening. They dun want to end up like Japan or USA, heavily in debt with excessive spending.

Hey communist government what do you expect.

BTW. should probably post this in the "are you ready for a crash" thread.

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Just wondering, are there any bluechip/big name companies that are considered a value investment?

Most bluechips seem to have high debt-equity ratios, high p/e, and is trading a few times above book value (high p/b).
They are also usually net debt and have negative FCF.

Does that mean we should stay away from bluechips? And they are only worth buying during a recession or a significant correction?

On my watchlist so far, SIA Engg, SembMarine and SATs all net cash. SIA is super net cash almost 35% of market cap, but I guess they have to save up for expensive shiny new planes

[MINX]

Hi everyone,

I was just wondering what your definition of a value investor is and would you consider yourself one by your own definition.

Thank you!

Cheers

David.

To buy into something because you think it is much cheaper that its value.

To NOT buy into something because the graph shows an upward momentum or because your friend, hairstylist, parents, taxi driver recommended it

So value investing is as simple as that? If a stock's fair value is $1, I buy it at 99c, I can also be considered a value investor, maybe not a Sh** hot value investor correct? Which leads to my other question, what are the other x-factors which make me a sophistictaed value investor?

[brattzz]

Value Investor?

Same as in life, which itself is valuable, eg, a good wife, a good family, a good education, a good commonsense, a good sense of integity, dose of compassion..etc. => a GOOD LIFE!

Value Investor = Ability/knowledge/mindset to invest in biz/stocks/bonds/assets that is/are of good value/undervalue and become HUAT har!

[Wildreamz]

So value investing is as simple as that? If a stock's fair value is $1, I buy it at 99c, I can also be considered a value investor, maybe not a Sh** hot value investor correct? Which leads to my other question, what are the other x-factors which make me a sophistictaed value investor?

Off the top of my head, characteristics of a good value investor:

1) Has the valuation skill to gauge the intrinsic value of the security he is buying into. This includes the understanding of the concept of Discounted Cash Flow, what constitutes business with strong economic characteristics etc.

2) Understands that "intrinsic value" is hard to quantify, hence he will always buy with a sensible "margin of safety" (depends on individual risk appetite, usually more than 30% discount) from the estimated "true value", to protect himself from permanent loss of capital.

3) Resourceful and always on the look out of the best bargain in the market.