Tuesday, October 17, 2006

value investing

i believe that everything in life happens for a reason why you meet people, have your heart broken(i hope it happens the other way around hehehe) , make mistakes etcetc i was introduced to the world of stocks by chance but i believe that there is a deeper purpose to it :) it was oct 2002 when i took the cpa board exam and failed tsktsk i wanted to take the exam again but my dad thought it would be better if i went back home and helped in the family business. i didnt have any interest in stocks at first..... but a friend of mine was investing or trading in stocks :) and at that time i was looking for a business :) my friend introduced me to his broker and to my surprise my broker was one of the most respected minds in the philippines when it comes to stocks :) but sad to say in my first year i just broke even :) hehehe coz i was just "feeling" my trades hehehehe it was after that that i realized that i should have a system and discipline in investing in companies. the first book that i got from national bookstore was william o'neil's book about technical analysis. i have to admit that i am a value investor at heart but i have all the respect for charts, trendlines, cup with handle etcetc :) i am a value investor with a little twist :) but in the end just do whatever works for you. i tried value investing also but it just didnt work for me coz i have a day job and that when long term value investing came to my rescue :) i researched hard coz i believe that winning half the battle is knowing your up against :) then i made my investment decisions with all the disciplne that i could muster based on the principles of value investing :) i like it coz i could made trades and leave the stocks there for months or even years :) i also liked it coz it can give my portfolio business like returns :) like around 15-20% per annum :) and value investing made sense for me like buying low and selling high just like any businessman would do. it was like a match made in heaven :) but dont get me wrong technical analysis is ok also. use the system that suits your personality and your lifestyle :) remember life is beautiful :) my broker who is one of the most respected in the philippines chaced upon this stock and asked me to evaluate it fundamentally :) the company looks good and it even looks so much better coz it is dirt cheap :) curret assets less all of its liablities would net P1.26 per share and as of today it closed at 0.69 what does that tell us? BUY! actually my broker and i have been sending out feelers to others about this "secret stock" for a week now. the company is solid group inc or sgi. it just broke out today! good luck :)

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