“Invest in a business any fool can run, because someday a fool will.”
– Warren Buffett
Background
I am an ex-auditor. I tend to adopt a more skeptical view and downplay what Companies like to project themselves as.
To give credit, some Companies do have visionary management teams that will be able to spur a Company to greater heights in the near future. I will however, ignore these as I do not have the capabilities to imagine the Companies the same way these management teams do given that they are the ones on the ground directing the progress of the Company. I prefer using numbers which will tell a story on their own and adjust my assumptions within a smaller but reasonable range.
I acknowledge that technical analysis when done right, allows traders to earn more than an investor using fundamental analysis. This however requires more time and effort than my day job can afford. So I believe in relying more on fundamental analysis than technical analysis to make my decision.
Objective
This serves as a platform for me to share my ideas and also revisit my previous analysis. This will allow me to rethink whether some trains of thoughts are actually applicable and moving forward, will it serve as a benchmark for new ideas.
You will find that I do not cover stocks that trade on high Price-Earnings ratio which is very subjective. What is reasonable to me may not be reasonable to you. So instead of sharing with you about a highly undervalued stock which may (or may not) see significant price appreciation, I would be the one encouraging you to look for good dividend stocks that you can use to build a strong base. From there you can take any spare pocket change to trade stocks as you like.
Values
Rules that I like to remind myself of from Warren Buffet.
1) We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.
2) Price is what you pay. Value is what you get.
3) Risk comes from not knowing what you’re doing.
4) Chains of habit are too light to be felt until they are too heavy to be broken.
5) Our favorite holding period is forever.
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