Read some article from investment Guru "Cold Eyes" agreed with its point of view.
Investing must used the simplest method. Growth of a company is important , but as a investor we should focus on the return of the co , for the price we pay to buy it.
Simple example he quoted. If we are planting a fruit tree, what we focus is how much fruits the trees can give us. But not how tall it grow or how big , or how many tree leaves it had.
I strongly agreed. If the company achieve very good roe every year, but all the money it used is used for CAPEX purposed, it doesnt benefit retail investor at all. Its just like watching a tree with a lot of leaves but never bear frutis.Defeat the prupose of investing.
If a company acheive moderate earning, with simple business model (which we understand) and give reasonable dividen. It is a good fruit tree which bear fruit. Our effort pay in this kind of company.
He recomended NCB, it was a good co. But he also mentioned that should buy in the stock with reasonable price. Yes i agree, no matter how goood a stocks is, if we want to eat the sweetest fruit, we must plant the correct tree( cash rich and willing to pay dividen, patienly wait (buy the tree and sell it at right price)
I was thinking,it was not at attractive price right now. Havent really go thru its financial report. but in my monitor list. Another undervalue stocks he mentioned. Eupe alot of undervalue assest. Both in monitor list.
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