Value Investor?

[yeokiwi]

You wouldn't feel as confident investing 2mil in a single stock which you have no control at all.

I suppose your context of "2mil" needs to be defined.
Is it 2 mil out of 100mil net asset?
or
2 mil out of 2 mil net asset?

for 2 mil out of 2mil case, one good property will eat up all the capital and even if the investor wants to diversify in properties, he can't really do much. Given a choice, I suppose he prefer to have 5 properties in Singapore for 2mil?
If the investment is in equity, there are many choices and the difference between choices is small. Buying Singtel, Starhub or M1 individually or in equal portions are both viable. Naturally, most investors will allocate investment in portions.

For net assets of 100mil or more, 2 mil investment in a single stock is normal. Look at Peter Lim.

And, confidence should be built on the future prospect of the investment, not the past experiences.

[ValueMushroom]

I'm coming from the perspective of a small time investor with a sum of 2million to invest.

I personally would prefer spending 2 million on a single good property rather than spending 2 million on a good stock.

The reason is when you buy a property you have full control; when you buy stocks of a company, the SSH have full control of the company and you have no say in anything of importance.

My personal 1cent view : )

[Drizzt]

2 mil landed places yields 2.2% probably now. thats a rather value investment.

[Dividend Warrior]

End of day like Buffett say, the key is employees must act like business owners rather than self-serving.

Yes. I agree.

That's why all the core teachers at my tuition centre have a share in the company too. They are the 'business drivers'.

[Temperament]

End of day like Buffett say, the key is employees must act like business owners rather than self-serving.

Yes. I agree.

That's why all the core teachers at my tuition centre have a share in the company too. They are the 'business drivers'.

That's why it's Hobson's choice for traditional Chinese company where base salaries may be very low but year end bonuses (profits sharing) can 6 months or more.

[vesfreq]

Is a high beta stock means it's has high volatility in price from it's mean? So is it true a low beta stock is safer then a high beta stock?

I think the rest of the VBs have given their piece. Beta is a function of price movements. Its more important to understand what stock are you buying in. That beats reading only the beta.

Interestingly though, if you are gunning for stocks which are sensitive to market movement, then this is a useful indicator.

You can't really say that low beta is for sure safer. Betas vary for many sorts of reasons. News also play a part and the irrational investors too have a job to play in this.

[vesfreq]

I'm coming from the perspective of a small time investor with a sum of 2million to invest.

I personally would prefer spending 2 million on a single good property rather than spending 2 million on a good stock.

The reason is when you buy a property you have full control; when you buy stocks of a company, the SSH have full control of the company and you have no say in anything of importance.

My personal 1cent view : )

Hi,

There are many ways to play the game. I agree with you regarding the control aspect. With share investment, the constant concern is whether the agents are serving the principal or otherwise. There is little we (as equity investors) can do to influence decision making and it depends much on share holding too.

The alternative to this is I could adopt your point of view and use my own money and start a business (or purchase a property). Both would give me absolute control.

However, there is a slight problem. As a business owner, I am my own worst constraint because however hard I work it would take me years to achieve the competitive advantages of bread talk and raffles medical group. I would have to polish my skills as a sales man, accountant, strategist, admin clerk, mr handy man and etc etc. By then, I may have broke my back trying to rely on myself building up the shop and hoping for some good people to recruit and back me up.

As a shareholder of a listed company, I delegate all these to the "pros" and the risk to me is my "yen guang" (judgement) of people may not be as perfect as I would like. While I cannot be the guy to steer the ship alone, I know I have a stake in a listed company with greater economies of scale than if i were to do it alone. For this to work, its rewarding and challenging ball game.

Having a property can't give one the rewards of testing one's judgement in the quality of management. A good competent management beats having to "do it myself".

You are not wrong about investing in property. Its a different game. Its a choice you made to invest in properties instead. As a shareholder of a listed co, i have a stake in the success of many sales men and experienced management, some good and some not so good. But, thats a choice of how I like to play the game, to allocate resources to the guys who can do my money justice.

Just my view. I'm not trying to convince you to invest in equity, just sharing my views. Have fun shopping.

PS: I do own a business and the views are expressed from both views of an equity investor and also a business owner. Business is tough.... with the crazy rentals.