Tuesday, February 10, 2015

Beautiful or Ugly? Be Careful!


One of the problems that I have an as investor is that I like really ugly, awful, shitty looking stuff. The worse something looks, the more excited I am about it.

Clearly, there is something wrong with my wiring. Am I a psychopath? Quite possibly.

However, I do understand the failings and short comings of my methods. The problem with looking at horrible looking companies and hoping for a turnaround is that.... a turnaround might never happen.

I am not foolishly unaware. "Dumpster diving" strategies have a much higher total and complete failure rate. Not diversifying is making a pretty confident bet about it's future outcome.

I suppose there are only 2 ways to deal with this. Firstly, purchase such said shitty securities at a bargain basement price that gives you plenty margin of safety. Secondly, diversify your bets.

Anyway, a lot of things have changed in the short span of 1 week that I was away. On the bright side, my bets into Noble and Frencken are already up more than 10%. However, I'm more surprised at what looks bad now instead.

I've looked through my charts and I've found a few interesting specimens that requires further scrutiny:

BBR, BRC Asia, Case, China Fishery, CSE Global, F&N, Food Empire, Global Logistics, HupSteel, Lum Chang, New Toyo, Second Chance, Semb Industries, SIA Engineering, Sin Heng Mech, SPH, Teckwah, World Precision

Just calling out what looks quite bad on the charts. Actually executing "buying low, selling high" is not easy to do, it really is counter-intuitive. If it was so easy to do, I guess everybody would be a millionaire.

1 comment:

  1. Purchasing good securities at shitty(very low) prices will be my favorite!!

    ReplyDelete

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