Value investing for long-term

Why is value investing good for the long-term? The main reason is due to the theory of "reversion back to the norm". Something that is undervalued won't stay as such for the long-term. As the market catches up, the undervalued stocks will catch up as "investors" (or traders in this instance) look for new stocks … Continue reading Value investing for long-term →

Putting net profit margins into perspective

The profit margin tells you how much profit a company makes for every $1 it generates in revenue. For example, if the net profit margin is 30%, company makes $0.30 for every dollar generated in revenue. It is calculated by using: (Net income ÷ Revenue) * 100% Personally, I look for net profit margins to be … Continue reading Putting net profit margins into perspective →

Putting P/E ratio into perspective

A low P/E ratio doesn't necessarily mean that the company is undervalued and is a prospective buy. On the other hand, a high P/E ratio also doesn't mean that the company is overvalued and we should chuck it aside. A company with low P/E ratio may not mean that it is attractive (or undervalued) due … Continue reading Putting P/E ratio into perspective →

Singapore’s future growth sectors

2010 is coming to an end in less than a month's time. What are some of the future growth growth sectors for Singapore going forward into 2011? The sectors I'm bullish on are: Tourism - hotels, gaming, medical tourism, shopping centres MICE Transport - Land and air Construction Financial Property Luxury goods Offshore marine Commodities … Continue reading Singapore’s future growth sectors →

Macro Investing vs Micro Investing

There are basically two ways an investor can research into which stocks to buy. One is looking at the macro picture (macro economy) and zooming into a particular industry and stock. The other is looking at the stocks itself and then panning out to the industry and the economy as a whole.The former is called … Continue reading Macro Investing vs Micro Investing →