The Top Ten Attributes of Great Fundamental Investors by Michael J. Mauboussin.
The following is an excerpt of the full report:
“Perhaps the single greatest error in the investment business is a failure to distinguish between the knowledge of a company’s fundamentals and the expectations implied by the market price.”
The world of investing and business has seen a great deal of change in the past 30 years.
This report shares thoughts on the ten attributes of great fundamental investors. Accounting is the language of business and you need to understand it to appreciate economic value and to assess competitive positioning. Investors face a slew of psychological challenges.
Perhaps the most difficult is updating beliefs when new information arrives. Position sizing and portfolio construction still do not get the attention they warrant. The substantial shift from active to passive management has profound implications for the investment industry.
A decade ago, the 2008 financial crisis wreaked havoc on global markets as well as the world. The financial crisis has sunk some banks and paralyzed markets, resulting in staggering losses for many people out there. It is also considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.
How did it all happen?
After 10 years, the causes and repercussions remain tricky to comprehend. What exactly set it into motion involves a whole series of complex questions with a number of interlocking answers.
Here is a quick infographic attempting to detail what caused the 2008 Financial Crisis:
It all began with the use of securitization. Securitization simply means the pooling of debt and then issuing assets based upon that debt.
We had the honour and privilege to do an investor starter workshop at Hwa Chong Institution last week!
In association with SIAS (Securities Investors Association Singapore), we conducted a 3 hour workshop for Hwa Chong Institution for junior college students to take the first look into their investment journey.
The famous clock tower inside Hwa Chong Institution.
The structure of the workshop included the following: …
REITs are collective property investment trusts that pool money to invest in properties. Investors can purchase units of a REIT through the stock exchange.
Structure of how a REITs function:
REITs achieve separation of powers and duties by segregating the roles of ownership and management of the REIT assets between the Trustee and REIT Manager.
The trustee is responsible for the ownership and safe custody of the REIT’s assets. In exchange for providing the services, the trustee is paid a fee.
The REIT manager is just like the chief executive officer(CEO) of any listed company. The REIT manager is a separate company set up to run the REIT. It is usually a wholly-owned or partly-owned subsidiary of a REIT’s sponsor.
The REIT manager has the authority to appoint Property Managers for each property managed by the REIT, whose role is to manage the day to day operations and maintenance of the property. Usually the property manager are often a subsidiary of the sponsor. …
This article, Time Weighted Returns Vs Money Weighted Returns was originally posted here. He is a veteran community member on InvestingNote, with username known as ThumbTack Investor.
TIME WEIGHTED RETURNS VS MONEY WEIGHTED RETURNS
I think probably 70% of the people here don’t really calculate their returns.
Certainly not the traders with multiple transactions, cos it is a mammoth task doing so.
The vast majority of the remaining 30% are probably calculating it wrongly (Wrongly, that is, if you are using your ROI and comparing it to active managers)
Everyone knows SGX stand for the Singapore Stock Exchange. But how much do you really know about SGX? For new investors, this is a crash-course on becoming an investor of Singapore stocks.
What is SGX?
Singapore Exchange (SGX) is a stock exchange for Singapore stocks. It is a place where stocks trading between investors takes place. SGX also provides different services related to equities, fixed income, derivatives, commodities and foreign currency exchange (FX). Headquartered in AAA-rated Singapore, SGX is also globally recognized for its risk management and clearing capabilities.