buy on certainty is another method that enlighten my view.
although i have spent so long to understand this and just apply it recently on suncity.
he has deep knowledge in investment. http://2ndbrother2.blogspot.com/2009/09/blog-post_11.html
maybe u have read this before,
http://tan81.com/?p=168
It was the 1st time i have a thought on invest with qualitative analysis and not just based on the financial numbers.
then, i started to implement it.
till today, i only put this action in two company,nestle and vitrox.
nestle, i share enough already. and i still think nestle is in my 能力圈。
Vitrox is totally not.
i visited them long ago, before i am thinking to buy share by qualitative analysis.
but this visiting experience has gave me such an big impact in my investment.
in order to reduce my risk, i buy them with 分批买进
not just because of price, it is to take time to evaluate their quality.
in that visiting, director yeoh has told me the darkness of mesdaq.
they planned to upgrade themselves to main board asap.
in 2009 nov, they transfered to main board. so, i buy more that time.
they said the company growth will depend on AOI in future.
but in year 2008 and 2009, the sales has not turn up. so, i am not buying on this,
as they lost the quality in products growth.
but 2009, they able to earn Agilent AOI contract after Agilent quit the AOI biz.
Agilent client lists are about 2000. i made my buy again as they able to achieve another milestone.
the directors did mention, not using company cash to buy new cars.i check their directors fees every year. i set a line. for executive director, earning average 10K to 20K per month, is reasonable. as long as they maintain, i think the board intregrity can remain.
cash portion. from 2008 till 2010, electronics company has face a bad challenge and recover fast. this gives me a baseline to evaluate the quality of management. they able to maintain cashflow / cash portion for the company which impressed me a lots. compare to others players in the same industry, the diffrence in cash management, it is huge.
annual reports also give me a compare. i do not like the annual report that hard to understand, especially just give a simple explanation on company or simple statement from MD. they management should know that annual report only printed out a year, and it is only chance for most of the shareholders to understand how is the company doing in last year.vitrox can be a case study. i see improvement in its annual report year by year. of coz, do not take all the points in the report. has to wait and prove the points.
reading news or research reports can be helpful too. watch the management comments and their planning. check it when time comes. do they carried out the plan and make it happens? or they keep on changing their plan?
last thing to clarify here, i am sorry if somebody found that i am hard sell vitrox here.
vitrox also has a lots of problem that i dun understand yet. u may read the 股票专区，if u wan to know more.
3。 八年兄说的对，屋租回酬需以 ROI 来看，计算 ROI 需以房产价格为准。当你向银行贷款买屋投资，就是利用财务杠杆。因此，ROI 必须比借贷成本高，才会有利可图。目前，你的房屋 ROI 稍微高于 借贷成本，主要是因为今天的低 BLR 环境。只要BLR 稍微上升 1%，你的这项投资的收入会低于借贷成本。我觉得，margin of safety 太低。
