tag:blogger.com,1999:blog-28021668.post5087164792503508009..comments2023-10-12T21:12:41.408+08:00Comments on Value Investment - Musicwhiz's Journey: Musicwhizhttp://www.blogger.com/profile/10950754156386935254noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-28021668.post-9975650194497852112008-02-06T19:11:00.000+08:002008-02-06T19:11:00.000+08:00Hello BC,Thanks for visiting and leaving your comm...Hello BC,<BR/><BR/>Thanks for visiting and leaving your comments.<BR/><BR/>You are right in a way to say that at one stage, my entire portfolio was up over 100%. That was actually during the days of the bull run when a lot of companies were over-valued. I was actually not expecting my portfolio to stay at above 100% returns for long (not in the near-term at least) as I knew it was over-valued. What I preferred was for the companies to grow over time and give me steady returns. It would have been interesting to note that Graham would have sold if he felt a company was over-valued; but my view is that growth will eventually catch up with price, thus I was willing to wait for the company's growth to be realized. That said, I believe there is latent potential which is over and above the financial numbers (i.e. intangible factors).<BR/><BR/>Another point to note is that my returns have been "diluted" as a result of adding a yield counter (FSL Trust) to my portfolio. Removing this from the equation, my portfolio is actually up about 53-55%, which I deem decent.<BR/><BR/>Your description of valuation is accurate, and value is what we get while price is what we pay for. A better price would mean a lower price, which increases the chances of a better return as well.<BR/><BR/>Haha, I think we are all learning on how to tackle the "stumbling blocks" you mention. Hopefully they are one-foot hurdles and not 7-foot ones which I cannot hope to jump across !<BR/><BR/>Yep, everyday is a learning experience and I am continually surprised that I can add value to myself by doing reading up here and there to enrich and enhance my knowledge.<BR/><BR/>Happy CNY !<BR/><BR/>Regards,<BR/>MusicwhizMusicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-80624624173185068432008-02-06T18:47:00.000+08:002008-02-06T18:47:00.000+08:00Hi Musicwhiz,I've been on and off sort of followin...Hi Musicwhiz,<BR/><BR/>I've been on and off sort of following your bi-monthly update of your stock portfolio. Actually, before the market went on a downward spiral, your portfolio can be said to be one can only be dreamt of. Correct me if I am wrong, I think your gain then was over 100%? <BR/><BR/>I think an investor should focus more on the value rather than on the price - within a short term, price can go from at value to very overvalue, or from cheap to at value, or from overvalue to at value or under. On further examination, most of it I would think (my personal valuation though) is that a number of it went from at value (the price that was paid) to over value. Again, the only way to gain if the intention is to hold is to know the difference between price and value. Ultimately, whatever price we pay for a business, we are only paying for the future cash flows for whatever period the business will be in existence from now to eternity, that must be discounted at an appropriate interest rate. <BR/><BR/>On hindsight, it is very easy for me to say so and frankly, it takes experience and lots of observation on what others are doing and in identifying the stumbling blocks and move it aside. <BR/><BR/>That is the beauty of investing for it is a long walk where every day we can become a little more knowledgeable. <BR/><BR/>Regards<BR/>BCAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-28021668.post-85406778294436425512008-02-06T01:46:00.000+08:002008-02-06T01:46:00.000+08:00Hi Anonymous,Yes, true you have a point. Sadly, my...Hi Anonymous,<BR/><BR/>Yes, true you have a point. Sadly, my realized gains have not been high due to the offsetting effect of previous losses before I started value investing. These mistakes are detailed under my section on "Investment Mistakes". However, I still count my lucky stars that I have realized gains as a lot of my friends are sitting on realized (and also unrealized) losses !<BR/><BR/>Thus, it is a process of continuous improvement, and we are all on the perpetual learning journey to better ourselves.<BR/><BR/>Regards,<BR/>MusicwhizMusicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-14797427300617597462008-02-06T01:44:00.000+08:002008-02-06T01:44:00.000+08:00Hi Anonymous,I have been following the Wallstraits...Hi Anonymous,<BR/><BR/>I have been following the Wallstraits thread on FSL Trust (incidentally, it was started by me) and d.o.g. has been explaining a lot on the structure and possible future of FSL Trust. Perhaps you can check it out there ? Presently, I am still compiling information and analyzing FSL Trust from various aspects, so I will need time to do a detailed posting on the trust.<BR/><BR/>Thanks,<BR/>MusicwhizMusicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-18473944803460906092008-02-06T01:42:00.000+08:002008-02-06T01:42:00.000+08:00Hello HH,Good to learn from you and your mentor. P...Hello HH,<BR/><BR/>Good to learn from you and your mentor. Please keep your ideas and comments coming ! It will indeed be an inspiration if I can achieve the kind of wealth which your mentor has generated.<BR/><BR/>Regards,<BR/>MusicwhizMusicwhizhttps://www.blogger.com/profile/10950754156386935254noreply@blogger.comtag:blogger.com,1999:blog-28021668.post-84732499164622204872008-02-05T13:19:00.000+08:002008-02-05T13:19:00.000+08:00I observed that your realised gain is relatively s...I observed that your realised gain is relatively small, guess you're not long in the market and also your allocation focus more on growth. In time of volatility, one can take solace if your gain is already sustantial and can ride the wave more confidently. Gong Xi Fa Cai.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-28021668.post-69941028121032510512008-02-02T12:49:00.000+08:002008-02-02T12:49:00.000+08:00Hi Musicwhiz,Your stock portfolio is very similar ...Hi Musicwhiz,<BR/><BR/>Your stock portfolio is very similar to mine, or at least all your stocks are under my radar screen. One particular one is FSL, which is in my top priority buy list soon.<BR/><BR/>It is interesting to see your comments on "more than meets the eye" on FSL, I am wondering, you care to share?<BR/><BR/>tks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-28021668.post-67224877114697528702008-02-01T13:44:00.000+08:002008-02-01T13:44:00.000+08:00Hi MW,Always have to thank you for updating your p...Hi MW,<BR/><BR/>Always have to thank you for updating your portfolio -- never fail to prompt me to do mine. :)<BR/><BR/>I am done! not as bad as I thought. My 3rd largest holding dropped from 12 to 8, I thought my portfolio must be horrendous but commodities save the day, thankfully. still it is a - 6.45% <BR/><BR/>Mentor's NAV was up because of his Yen (which he liquidated), commodities and Bonds. <BR/><BR/>With more money, one can do portfolio rebalancing. How nice .<BR/><BR/>BlessingsAnonymousnoreply@blogger.com