STE's Stocks Investing Journey

  What is Value Investing? Value investing is one of the key disciplines in the world of investing. It consists of quantifying what something is worth intrinsically, based primarily on its fundamental, cash flow-generating capabilities, and buying it if its price represents a meaningful discount from that value. Importantly, value investors recognize that the securities they buy are not just pieces of paper, but rather ownership stakes in (or, in the case of credit, claims on) actual businesses. Now, determining this value in practice is quite challenging, and the key to success lies not in the ability to perform a mathematical calculation, but rather in making superior judgments regarding the relevant inputs. Simply put, the DCF method is the main tool of all value investors in their effort to make investment decisions based on companies’ long-term fundamentals.   Value vs. Growth Over the last 80-90 years, two important developments occurred with regard to invest...

Value is a better measure for investors while price matters more to traders We, the so-called “value investors” often find ourselves trying to resolve the differences between a stock's value and its price. If you have spent any time investing in the stock market, you will know that value and price are two different measures arrived at by different means but most of the time we might confuse and mix up “price as value”.

Mean Reversion : image credit to asymmetryobservation.com Received inquiry from friends/readers about "plotting regression line " for major stock markets other than STI. Would like to reiterate here that the " regression line " is just a "statistical phenomena " same as other indicators in Technical Analysis where we are just using past price trend or movement to manipulate or so call " forecasting " the future price movement.

My Investing Mentor : We often seek our own “ Guru “ or mentors in our journey of investing and this person represents a role model, someone you look up to and wanted to emulate for all the right reasons. Some may pick international renowned and successful investment gurus like Warren Buffet, Peter Lynch, George Soros , Seth Klarman, Walter Schloss etc.