Saturday, August 26, 2017

Review of Value / Growth Investing Workshop

I was invited to attend this 1st value and growth investing workshop between the collaboration of Terence and John which happened this morning.

The workshop lasted for slightly more than 3 hours and I went with an open mind because I knew both speakers are great investors and they had their methods which they are willing to share.

I met with my good buddies, Richard from Investopenly and Chris from Tree of Prosperity and we went down together.

Unfortunately, I need to go before they reveal their scorecard to the public which is the main highlight of the event.

Terence (tubinvesting.blogspot.sg/)

Terence is someone whom I liase quite regularly on private chat.


You can see from his returns over the years that the method works well for him and he has been improvising the scorecard over time into something better each time.

He is also a contrarian by nature so in the session he tried to explain how he values things and how he frames his mind when selecting stocks to invest.

There were times when things during the session are rather dry in nature, but that's the way to go about it. I think if you are really interested to become better, it takes a lot more than just attending these sorts of workshops. You need to go one ahead and find out some of the terms and such yourself.

Terence mentioned he has about 13 to 14 criterias to meet in his scorecard. He only revealed a few during the session. Ratios such as Current Asset less Total Liabilities, Price to Free Cash Flow, Dividend Yield to Price to Book and Price to book to Return on Equity all came out as one of those important ones in his ultimate scorecard.

I overheard conversations behind me saying that how in the world do they have time to find all these ratios and were too lazy to do such screening. This is why such demand for a ready database is there. They are meant to help these people find things in an instant. In return, you got to pay for the service. 

I think that's a fair trade assuming the strategy works well for you.

John (http://www.simpleinvestorsg.com/)

I knew Simpleinvestor but it's my first time meeting John.

Even though he claimed to be a very technical guy, he is someone who struck to me as confident and knows what he is doing.



John style is somewhat similar to mine in the sense that we have very concentrated portfolio. So when he says that he believes diversification will not reduce systematic risk, it struck a chord with me. When a black swan like world war event happens, I think all stocks will go down. Unless your portfolio is diversified with other hedging assets like gold, it's unlikely that the diversification among stocks will bear fruits.

His track record has been very good too and he has shown that his past companies like Tat Seng, Nordic, 800 Super are all returning crazy returns when he sold them. There were also some discussions over why he sold Dutech and his differed opinions with another popular investor, Thumbthack Investor.

John focuses on growth companies. He simplified the understanding by likening it to a money printing machine that are able to churn out decent and boring profits year after year and dividends get rewarded through dividends and a corresponding higher share price (capital gain).

He also focuses much on the strength of the balance sheet such as gearing and how much cashflow the company is able to churn out.

Summary

Both speakers have done well in explaining how their methods are able to provide them superior returns so far.

They were also clear in the disclaimer that this is not a fool proof strategy but something which they found to be useful and hence sharing with the larger crowd. As always, due diligence needs to be considered in all aspects and we need to take care of our own decision in case things does not work out.

If you are interested in their scorecard, they are having a promotion and collaboration with one another. This information should be available in their website. Do ask them questions with follow-up if you have any.

*All opinions are purely mine and I receive no compensation benefit whatsoever other than the invitation to attend the session.

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