|
Post by oldman on Nov 4, 2013 5:47:42 GMT 7
|
|
|
Post by me200 on Nov 13, 2013 15:54:26 GMT 7
Read about Walter Schloss investing philosophy in Ronald Chan book "The Value Investors - Lessons from the World's top fund managers"
|
|
|
Post by oldman on Nov 13, 2013 16:00:51 GMT 7
It's a good book to read. Here are my favourite paragraphs about Walter Schloss. For those keen to read the book, I think you can borrow it from our National Library: pertama.freeforums.net/thread/201/free-access-thousands-magazines-newspapers------------------------ Unlike many fund managers who like to talk to management and understand a company’s business, Schloss’s sole interest was in looking at the statistical side of a stock. Doing so meant “focusing on the downside and not losing money,” he explained. “When a stock trades below its working capital, the investor begins to get protection.” Schloss elaborated: “I always like to find companies with no to low debt because debt complicates things. I also like to see whether management owns enough of the company’s stock to serve in its best interests. But you often have to keep track of management’s actions, digging into the footnotes of financial statements to see if they are honest people. ------------------------ When it comes to investing,” Schloss advised, “my suggestion is to first understand your strengths and weaknesses, and then devise a simple strategy so that you can sleep at night! Remember that a share of stock represents a part of a business, and so you need to understand its financials before making a judgment. When you have made a sound decision, make sure you have the courage to stay true to your convictions and not let the market affect your emotions. After all, investing should be fun and challenging, not stressful and worrying".
|
|
|
Post by me200 on Nov 13, 2013 16:40:09 GMT 7
Funny strategy ..... page 39. Schloss decided to close down his business in 2001 because it was too difficult to find cheap stock. ... However, it was not too long before even this new book value strategy and Grahams's way of investing simply became inapplicable in the modern world. for Schloss, it was difficult to judge whether the world had beome smarter or riskier. Either way, retiremet beckoned, and Schloss decided to close down the business in 2001 after more than 45 years of managing money.
He explained: "I had turned 85, and one day my son said to me, "Dad, I can't find cheap stock anymore". So I said, "let's go out of business!". We liquidated the partnership and gave back the money to investors."
One thing Schloss learing in his long life was the important of avoiding stress: "Finding cheap stocks became too stressful, and so it was time o stop looking."
|
|
|
Post by oldman on Nov 13, 2013 17:08:46 GMT 7
I guess it was easier to find the gems when information was not that readily available. So the availability of the internet is both good and bad for fundamental investors like us. Guess, we just have to work that extra bit harder and not limit ourselves to just Singapore listed companies.
|
|
|
Post by me200 on Nov 13, 2013 18:03:45 GMT 7
I thinks the "net-net" strategy can be only apply during market crash. During this market crash period, we may able to find Price/Cash per share < 1.
|
|
|
Post by candy188 on Nov 13, 2013 18:07:28 GMT 7
It's a good book to read. Here are my favourite paragraphs about Walter Schloss. For those keen to read the book, I think you can borrow it from our National Library: pertama.freeforums.net/thread/201/free-access-thousands-magazines-newspapers------------------------ Unlike many fund managers who like to talk to management and understand a company’s business, Schloss’s sole interest was in looking at the statistical side of a stock. Doing so meant “ focusing on the DOWNSIDE and NOT Losing money,” he explained. “When a stock trades below its working capital, the investor begins to get protection.”
Schloss elaborated: “I always like to find companies with NO to low debt because debt complicates things.
I also like to see whether management owns enough of the company’s stock to serve in its best interests. But you often have to keep track of management’s actions, digging into the footnotes of financial statements to see if they are honest people.
------------------------ When it comes to investing,” Schloss advised, “my suggestion is to ~~first understand your strengths and weaknesses,
~~~ and then devise a simple strategy so that you can sleep at night! Remember that a share of stock represents a part of a Business, and so you need to understand its financials before making a judgment. - When you have made a Sound Decision, - make sure you have the Courage to stay true to your Convictions - and NOT let the market affect your Emotions.
After all, investing should be Fun and Challenging, not stressful and worrying".Hi oldman, Could I check what you mean "view their past transactions"? I am beginning to experience investing as a hobby, generating passive income while I sleep soundly at night. 15 Companies with Zero DebtFastenal, C.H. Robinson Worldwide, Citrix, Red Hat, LSI Corp, T Rowe Price Group, Autodesk, Bed Bath and Beyond, Intuitive Surgical, Forest Labs, Cognizant Tech, Mastercard, Amazon.com, Apple. This Company Sells at a Huge Discount and Has No DebtTop-rated cash-rich, debt-free companiesSingapore’s Cash-Rich Blue ChipsOCBC, UOB, Genting Singapore, SIA, Sembcorp Marine, ST Engineering, SIA Engineering
|
|
|
Post by candy188 on Nov 13, 2013 18:18:01 GMT 7
Funny strategy ..... page 39. Schloss decided to close down his business in 2001 because it was too difficult to find cheap stock. ... However, it was not too long before even this new book value strategy and Grahams's way of investing simply became inapplicable in the modern world. for Schloss, it was difficult to judge whether the world had beome smarter or riskier. Either way, retiremet beckoned, and Schloss decided to close down the business in 2001 after more than 45 years of managing money.
He explained: "I had turned 85, and one day my son said to me, "Dad, I can't find cheap stock anymore". So I said, "let's go out of business!". We liquidated the partnership and gave back the money to investors."
One thing Schloss learing in his long life was the important of avoiding stress: "Finding cheap stocks became too stressful, and so it was time o stop looking."
Perhaps it may be a rational strategy to "close down the business temporarily" when one has no confidence of finding cheap stocks or market valuation has stretched beyond valuation. Business could resume in bear market.
|
|
|
Post by oldman on Nov 13, 2013 18:58:43 GMT 7
Viewing their past transactions means looking through the past annual reports and SGX announcements to see what management did and then comparing it to what they said they will do. Looking at the past transactions also mean to look at the deals that the management did previously and see if those deals benefited themselves more than it benefited shareholders.
|
|
|
Post by candy188 on Dec 6, 2013 15:33:34 GMT 7
Viewing their past transactions means (1)looking through the Past Annual Reports and SGX announcements to see what management DID and then comparing it to what they SAID they will do.
Looking at the past transactions also mean (2) to look at the Deals that the management did previously and see if those deals BENEFITED themselves more than it benefited shareholders. Meaning whether Management operate the business entity with shareholders interest in mind.
Seems that one will be more likely to find management that take care of shareholder interest in business with strong underlying fundamental.
|
|
|
Post by candy188 on Dec 6, 2013 16:57:55 GMT 7
Read about Walter Schloss investing philosophy in Ronald Chan book "The Value Investors - Lessons from the World's top fund managers" Found a value buy price at Amazon.com at US$20 that is equivalent to S$25.20 utilising exchange rate of 1.26. However, need to consolidate the order to US$125 to enjoy free shipping. Other online bookstores are selling from S$30.28 to $31.32. Amazon Book Depository Fishpond
|
|
|
Post by me200 on Dec 6, 2013 17:02:07 GMT 7
Candy188,
You can borrow it from library; hard copy or e-pub.
Save money ma.
|
|