Wow! What a way to end the year :) to be honest with you i had my doubts last week if there would be a rally at the end of the year with the foreign exchange controls that was imposed in thailand. Thats the hard part of being a long term investor. You might know how to evaluate a company with good fundamentals and but it at a good price but the question is can you hold on to it when things don't go your way? :) as they say do you have the balls of steel? Hehehe i believe that is the hardest part of being a value investor. . . holding on to stocks. I remember what the great warren buffett said “i made a lot of money doing nothing”. He said this because of his buy and hold strategy. Even when things don't look good or even if the dow jones will drop 100points in a day he really doesnt mind because what really matters for him is the fundamentals of the company. :) this is what i also mentioned in my earlier article. When youre investing you don't buy stocks but you buy parts of companies. :) like i recall just the other day i was with my trader friend rafael and he was kidding me that i shouldnt have bought sgi because it is not a good company cause it has too much cash. Of course i recommended it to him around 2 months ago and he didnt buy it and i did because i see so much value in the company. I didnt even care to explain to him my reasons for having shares in the company :) the net net value of the company or its current assets less all its liabilities is P1.26 and it has been in the 0.60-0.85 range! If you cant see value in that then something must be wrong with you. That means that if the company closes down tomorrow and it has to liquidate all its assets you will still get 1.26 per share after paying all liabilities and that is just from its current assets! We havnt even talked about its long term assets like land, building equipment etc. i would rather buy a company with excess cash than buy a company with excess long term assets because as they say in business cash is king :)you give P1M and i bring it to aparri, sulu or batanes it will still be worth p1M. If there's a piece of land and you have 10 people look at it i'm sure everyone will come up with a different price.besides it is hard to sell real estate and when you quickly want to dispose of long term assets you will most of the time sell it at a discount. My portfolio this year performed 44.76% before dividends while the psei did 42.29% :) im happy i was able to outperform the psei this year by a few points :) i really hope that i will be able to do that again next year :) i hope theres a good soul/s out there who would be willing to give some financial help to my friend. Please let me know if you want to help. The spirit of christmas is in giving and in sharing. :) merry christmas and a happy new year to all. :) god bless :)
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