About this blog / Disclaimer

Disclaimer: 


This is NOT investment advice. Nothing on this blog is a solicitation for business nor a recommendation to buy or sell securities. We will NOT be responsible for any kind of damages or losses arising out of the use of any content or material published here.


About this blog: 


I am an individual investor looking to buy undervalued stocks for my portfolio. My goal is to minimize risk in terms of loss of capital. Some of the hunting grounds for investment opportunities are:

1. Out of favor stocks - Typically these stocks have some headline risk, but Mr Market ignores good stuff happening in other areas of the company.

2. Companies with hidden assets such as land or buildings, or items on balance sheet which are way below current market rates

3. Signs of future earning improvements - Mr Market is focused on current earnings, but there are some developments that hint towards future improvements. These don't screen well.
Examples:
a. Increased spend on Sales & Marketing but it hasn't show in revenue or profit yet, or
b.Low cost commodity producers further reducing cost but results don't show it yet due to commodity pricing environment

4. Forced sellers - examples are spinoffs, or when REIT cancel their dividend while they clean up their portfolio

These criteria mean that buying stocks mostly before they hit the bottom.  So short term paper loss is common and even welcome since it gives chance to buy more on the way down (i.e. catching a falling knife). Short term paper loss is fine as long as the valuation / thesis hasn't changed. The focus is on minimizing risk, but to be okay with uncertainty in terms of exact outcomes and time. I like good margin of safety when dealing with uncertainty both in terms of time and precise outcome.


1 comment:

Scheid Vineyards (SVIN) - substantial upside potential

I first found about Scheid in a  writeup  from Aaron Edelheit. Scheid is the 33rd largest winery in the United States when measured by num...