WB (1985): I have seen no trend toward value investing in the 35 years I've practiced. There seems to be some perverse human characteristic that likes to make easy things difficult.
We can see Lord Lee down -56% and CW8888 down -53% at the last GFC crisis.
May be it is quite common to see -40% to -60% drop in market crashes so we should prepare for it and don't come to the stock market with money that may be needed in the next few years since STI is quite high now.
Does this book give a detailed example of what his strategy is based on his 10 principles?
ReplyDeleteAdvance investors who do detailed company analysis like yourself may the book lacking in How?
DeleteHe just look at PER and Dividend Yield.
Can borrow from NLB. Don't buy. LOL!
The irony is that most people don't believe using simple valuation method.
ReplyDeleteAny view on John Lee's portfolio return?
DeleteWB (1985): I have seen no trend toward value investing in the 35 years I've practiced. There seems to be some perverse human characteristic that likes to make easy things difficult.
DeleteIt took Lord Lee 16 years to achieve $1m from initial capital of 126K.
ReplyDeletethat's eqial to 14% CAGR.
IMO, it is impressive but to shout about.
Beside selecting the undervalue stock (low cap in Lord Lee case), the critical success factor is able to ride the downturn (2007/08).
DeleteNot many people can do that.
CW888 had shown us he endure the pain in those years, but emerge a winner after the storm pass.
Good doses of panadols from the market as pain killer does help.
Delete:-)
For long only investors, it is a MUST to have the financial and emotional strength to ride the down market. It is unavoidable!
DeleteAll retail long ONLY investors must prepare themselves for this to happen. It WILL happen one day and last for X years!
We can see Lord Lee down -56% and CW8888 down -53% at the last GFC crisis.
DeleteMay be it is quite common to see -40% to -60% drop in market crashes so we should prepare for it and don't come to the stock market with money that may be needed in the next few years since STI is quite high now.