Value Investing: Philosophy, Process & Objective

[Bubbachuck]

Feeling greedy too but no bullets. Caught off guard. Deym! Rookie mistake. This opportunity doesn't come too often.

[Bibi]

Feeling greedy too but no bullets. Caught off guard. Deym! Rookie mistake. This opportunity doesn't come too often.

Err, STI haven touch 2500 better dont be too greedy. I have been thru STI <1000.

[Musicwhiz]

This doesn't look too bad actually. During a correction or extended bear market, just make sure you have enough cash to keep buying shares in solid companies; the toughest part is actually the psychology - good to read up more on behavioural finance to understand how one should react in market downturns.

[BlueKelah]

Usa went down 3% last night. Possible repeat of correction when sti went down around august 2011. Have already started nibbling into market.

Still have almost 50% portfolio in cash so early days. sti unlikely 1000, maybe possible back to gfc levels only. But dun wait for bottom, things can rebound suddenly. Fed can change their mind on rate rise and china can do more stimulus.

Usually during this type of sustain selling it will slowdown after about a month.

sent from my Galaxy Tab S

[greengiraffe]

Usa went down 3% last night. Possible repeat of correction when sti went down around august 2011. Have already started nibbling into market.

Still have almost 50% portfolio in cash so early days. sti unlikely 1000, maybe possible back to gfc levels only. But dun wait for bottom, things can rebound suddenly. Fed can change their mind on rate rise and china can do more stimulus.

Usually during this type of sustain selling it will slowdown after about a month.

sent from my Galaxy Tab S

funny,

I thought you never trusted the Chings? Frankly, can the Yanks be trusted let alone the Nazis?

Confused
GG

[BlueKelah]

Usa went down 3% last night. Possible repeat of correction when sti went down around august 2011. Have already started nibbling into market.

Still have almost 50% portfolio in cash so early days. sti unlikely 1000, maybe possible back to gfc levels only. But dun wait for bottom, things can rebound suddenly. Fed can change their mind on rate rise and china can do more stimulus.

Usually during this type of sustain selling it will slowdown after about a month.

sent from my Galaxy Tab S

funny,

I thought you never trusted the Chings? Frankly, can the Yanks be trusted let alone the Nazis?

Confused
GG

not trusting them at all, just saying that we can't predict a rebound when markets are falling fast. Merely pointing out some possible actions from FED or China that might cause a rebound.

This could be just the beginning of a crash or just a correction like in late 2011. So long there is superb value that emerges, IMHO investors with cash should start put some money in the market.

[BlueKelah]

Usa went down 3% last night. Possible repeat of correction when sti went down around august 2011. Have already started nibbling into market.

Still have almost 50% portfolio in cash so early days. sti unlikely 1000, maybe possible back to gfc levels only. But dun wait for bottom, things can rebound suddenly. Fed can change their mind on rate rise and china can do more stimulus.

Usually during this type of sustain selling it will slowdown after about a month.

sent from my Galaxy Tab S

funny,

I thought you never trusted the Chings? Frankly, can the Yanks be trusted let alone the Nazis?

Confused
GG

not trusting them at all, just saying that we can't predict a rebound when markets are falling fast. Merely pointing out some possible actions from FED or China that might cause a rebound.

This could be just the beginning of a crash or just a correction like in late 2011. So long there is superb value that emerges, IMHO investors with cash should start put some money in the market. For me the wait is finally over to deply, STI is now 10% down from 3500 peak. next level <2800 would be drop 20% liao can deploy more. Have enough cash to deploy all the way down to 1700, whereby will be using saved up dividends to become fully vested.

[Dosser]

Usa went down 3% last night. Possible repeat of correction when sti went down around august 2011. Have already started nibbling into market.

Still have almost 50% portfolio in cash so early days. sti unlikely 1000, maybe possible back to gfc levels only. But dun wait for bottom, things can rebound suddenly. Fed can change their mind on rate rise and china can do more stimulus.

Usually during this type of sustain selling it will slowdown after about a month.

sent from my Galaxy Tab S

Interesting. I am also now about 50% cash, and had a (very small) nibble this week. Always difficult to know when to play a severely falling market - the down movements are typically fast and over a limited time-frame, but how long and how far? At the moment, property and O & G are being particularly hammered, but the medium term outlook for those sectors is not attractive. Small cap manufacturing, particularly many of the value stocks highlighted in this forum, have tended to be more resilient so far, but often with very limited trading volume/wide quoted spreads. I am wondering if we will see a real panic, with the good being dumped with the bad - the value investor's dream. I agree we are unlikely to see  STI 1000, or anywhere near. I have found that nibbling on the way down and going in harder soon after the initial rebound has been reasonably profitable in the past  - on the basis that one is unlikely to call the bottom, but if, as usual, markets go down fast but up slowly (except the initial rebound), even going in a little late still yields a decent return over the long term. The only difficulty is overcoming the human temptation to wait for prices to drop back to the level at the bottom, rather than paying a slightly higher price, and accepting that one missed the bottom of the market....At least value investing gives a framework for decision making in relation to buying on the way down and on the way back up, and ignoring the noise of momentum.

[Temperament]

Almost all financial authors recommend the many advantages of average up on a stock regardless of market conditions. Wonder how many VBs can or have done that consistently. i suppose most of us are afraid to miss the boat in a Bear market if we wait to average up. That's why we usually average down on a stock especially in a Bear market.

i very rarely average up. i yet have to overcome my investment psychology of averaging down.
Actually (for argument sake) if you can do it "perfectly symmetrically" buying by 1,2,3,4,5 lots compare to 5,4,3,2,1 lots, isn't you pay the same price? But you are afraid to miss the market; don't you?
But which method will make you feel more secure?
Must try pyramid up at least once in my life in a Bear market.
Ya?

[BlueDogMeow]

interesting forum. the problem with tobias work is that it requires reliable data. the proliferation of s-chips and whatnot in less matured markets like Singapore threatens that.