Brandes Investment Partners founder's investment
approach adheres to the principles laid down by the father of value
investing, Benjamin Graham
By
genevieve cua
INVESTMENT management is frequently taken up with the "new new
thing" but for Charles Brandes, founder of US-based Brandes Investment
Partners, value investing is the way to go - and it is by no means an
easy way.
Speaking at the recent annual conference of the Investment Management Association of Singapore (Imas), Mr Brandes says two principles are key to successful long-term performance.
"You must follow sound principles in the selection of securities. They cannot be related to the stock market action. They have to be related to the fundamentals of the economic development of those assets."
The second is to have a method of operation that differs from the majority of investors. "If you're not different in the way you think from the majority, you're not going to be better than they are. Group thinking and short-term thinking and stock market action are things a lot of us do, and you can't be successful that way."
Speaking at the recent annual conference of the Investment Management Association of Singapore (Imas), Mr Brandes says two principles are key to successful long-term performance.
"You must follow sound principles in the selection of securities. They cannot be related to the stock market action. They have to be related to the fundamentals of the economic development of those assets."
The second is to have a method of operation that differs from the majority of investors. "If you're not different in the way you think from the majority, you're not going to be better than they are. Group thinking and short-term thinking and stock market action are things a lot of us do, and you can't be successful that way."
ReplyDeleteTalk about passive income. Think REITs!
Is this Group thinking since many retail investors are doing it without any difficulty?
Come Monday many can still do it.
Yes everyone can do it until the proverbial visit of the "Black Swan" or vey high borrowing interest rates, then Reits' DPU. will be affected. It's still O. K. for some people but then when Reits ask you to top up (Right Issues) which is quite often in a bear markets, what are you ging to do ? Do you have the money? Even you have the money, do you dare to top up in a severe Bear Market? These to me is REITS investment. Unlike other companies like SIA ENGG, SAT SVS, etc... They may behave in a different manners.
DeleteBut i will still invest in some REITS. Right now i am zero on REITS but starting to pay attention again.
This is only IMHO.
Shalom.