There has been a lot of talk about a looming recession in Singapore, 3rd quarter GDP was down to 0.6% from previous quarter of 2.0%. Things are pretty uncertain at the moment, should GDP contracts further, it could possibly trigger panic reactions in the economy. So what does this mean for us as investors? Should […]
Strategic Investors A substantial investor that brings value and goes beyond investing financial resources by bringing wealth of experience, industry contacts and operational expertise.These investors may help to improve business operations or provide expertise in acquisitions. A strategic investor could be an individual who has led several businesses in similar industries Improved Margins Increasing margins […]
Understanding a company’s financial health is a key component in investment decisions, a business with strong balance sheet stands a higher chance of surviving economic crisis, changes in economic climate or business cycles. Here are some simple ratios for you to apply to avoid companies with excessive leverage. Quick Ratio Quick Ratio = (Current Assets- […]
When making investment decisions, most people I know consumes investment advice from financial advisers, brokers or the online forum ‘gurus’. They purchase stocks based on rumours, gut feel, reacting to corporate announcements, buying ‘flavour of the week’ stocks or blindly following over optimistic analyst recommendations. Don’t get me wrong, it is okay to keep track […]
Deep value investing is counter-intuitive and contrarian. Most are thought to buy “wonderful companies at wonderful prices” logically, that is common sense. Therefore, buying “poor companies at cheap prices” seems counter-intuitive. Contrary to popular belief, studies have shown that buying deep value stocks have proven to provide market beating returns in the long run.