Deep Value Investing Workshop by Former Fund Manager

[opmi]

Just got this in my inbox.

Value investors will buy Apple in 2003 meh???

"Tipping points' - I thot it is called catalysts.

Taught by an internationally-featured value investor & former fund manager - Mr KB Kee

How Warren Buffett and Other Sophisticated Value-Investors Identify "Tipping Point" events?
How to distinguish between "catalysts" with unsustainable short-term effects and "tipping point" with long-term value relevance?
Waiting is the main drawback in value investing. Investors often lose patience with their stocks when they don't perform in the short-term to produce a feel-good comfort that we are right in our stock calls.

When iPod was introduced on November 10, 2001, Apple's share price was US$9.40 per share and had jumped to US$12 by year end. Those who had loaded up on the "iPod effect" or "new product" catalyst suffered for the next year-and-a-half as the shares plunged to US$6.70 in April 2003.

Disappointed, momentum traders cloaked under the label of fund managers sell the stock. Then a "tipping point" moment happened in April 2003 to bring about the extraordinary 60-fold returns in the next decade to US$428 per share, or US$400 billion in market cap.

What was this "tipping point" event? One such "tipping point" event is the launch of the iTunes Store on April 28, 2003.

Serious institutional investors spend most of their time not in looking at stock price screens or gaining "insider" knowledge of "catalysts" to generate alpha or excess returns, but in analyzing the interaction of business model dynamics with "tipping point" events so that they literally hear and see the "clicking" sound when they occur to produce a resilient compounder.

There is a systematic framework to understand and identify "tipping point" events when they occur and here are the
Key Learning Outlines:

UNDERSTAND the stock market reactions to a wide-range of "catalysts"
GAIN the surprising insight to why certain positive catalyst signals can be "negative"

DEVELOP the ability to distinguish "tipping point" events with long-term value relevance.

LEARN where M&A pays and where it strays and the pitfalls.
INSIGHTS into a wide range of real-world cases of Asian and Global companies' tipping point in their business models.

[specuvestor]

Apple was never value, not even when Jobs came back because the PC ecosystem don't need Mac OS. It's like saying Blackberry keypad is critical to smartphones.

Apple was about the business positioning and the vision of the man. iPod and iTunes are inseparable strategy rather than one or the other. Buying Apple was for the future, not the present discount or MoS.

The term "value" been misused or usually meaning many different things to different people. Value actually doesn't talk about the future that much. So when you hear someone talk about new business prospects, that likely means it is not about value. Listen to Buffett talk more about how the companies are doing CURRENTLY and this current business is likely to be sustainable and stay similar biz say 25 years from now. IT stocks do not have that kind of characteristics which is why Buffett shunned them until recently when the big IT stocks are matured and predictable.

Problem with value is that usually it needs a catalyst from the management or major shareholders, unless you can be the catalyst by acquiring big stake or form shareholders' activism. OPMI can only ride the trend, not create catalyst. Many value investors IMHO has an identity crisis.

Apple should be more a GARP rather than value classification back in the 03.

[ikur1]

so where is this workshop??

[weijian]

Here is some more information if one is interested.

http://www.beyondproxy.com/

In general, i still believe that a true master never reveals his/her secret and his/her time will be better spent, either with his loved ones or go deep-value fishing.

To understanding tipping points, i thought 'The Tipping Point' by Malcom Gladwell is an excellent read.

[sgd]

workshop over already aug 31 just google can find

[gautam]

[quote='weijian' pid='67621' dateline='1385110501']
Here is some more information if one is interested.

http://www.beyondproxy.com/

In general, i still believe that a true master never reveals his/her secret and his/her time will be better spent, either with his loved ones or go deep-value fishing.

hi weijian,
I agree. It might be that few share his views so he might feel that its a waste of time talking abt it n he wld be better off spending his time on his other interests.
If many pple genuinely share those views of the masters, there wld be many more masters today.
One can read all he can abt investing n attend as many seminars as he can find available, alas the chance of success i would place as 5% or less.
Most would even lose money. Imo.

[weijian]

hi weijian,
I agree. It might be that few share his views so he might feel that its a waste of time talking abt it n he wld be better off spending his time on his other interests.
If many pple genuinely share those views of the masters, there wld be many more masters today.
One can read all he can abt investing n attend as many seminars as he can find available, alas the chance of success i would place as 5% or less.
Most would even lose money. Imo.

hi Gautam,
Thanks for your reply.
I thought there is absolutely no issue with paying to go for seminars, if one feel that he/she can get value for the price to be paid. For example, i am an engineer by training and i may be glad to pay for a course on Accounting 101.

Most of such seminars/courses are earnest in nature. I thought the the problem comes when the receipient treats it as the 'one-stop-solution' or 'sure way to get rich method' through their ignorance/laziness/naivety.

[NTL]

Many things can be taught. But how many can actually practice what is preached?

[CityFarmer]

hi weijian,
I agree. It might be that few share his views so he might feel that its a waste of time talking abt it n he wld be better off spending his time on his other interests.
If many pple genuinely share those views of the masters, there wld be many more masters today.
One can read all he can abt investing n attend as many seminars as he can find available, alas the chance of success i would place as 5% or less.
Most would even lose money. Imo.

hi Gautam,
Thanks for your reply.
I thought there is absolutely no issue with paying to go for seminars, if one feel that he/she can get value for the price to be paid. For example, i am an engineer by training and i may be glad to pay for a course on Accounting 101.

Most of such seminars/courses are earnest in nature. I thought the the problem comes when the receipient treats it as the 'one-stop-solution' or 'sure way to get rich method' through their ignorance/laziness/naivety.

I agree that paying for courses/seminars are OK, as long as there are value-for-money.

Anyone attended courses organized by SGX Academy, both FOC and paid? It might be a valuable source of knowledge, especially on specific investment topic. I am exploring the courses now...

Ref: http://www.sgxacademy.com/

[kagemusha]

Here is some more information if one is interested.

http://www.beyondproxy.com/

In general, i still believe that a true master never reveals his/her secret and his/her time will be better spent, either with his loved ones or go deep-value fishing.

To understanding tipping points, i thought 'The Tipping Point' by Malcom Gladwell is an excellent read.

Malcolm Gladwell's Tipping Point is a very interesting read. Makes alot of sense too. Not to be missed.