{"id":86,"date":"2023-08-22T07:48:07","date_gmt":"2023-08-22T07:48:07","guid":{"rendered":"https:\/\/yibodomus.com\/?p=86"},"modified":"2023-09-06T01:58:39","modified_gmt":"2023-09-06T01:58:39","slug":"q-a","status":"publish","type":"post","link":"https:\/\/yibodomus.com\/index.php\/2023\/08\/22\/q-a\/","title":{"rendered":"Q &#038; A"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"86\" class=\"elementor elementor-86\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-62c5568c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"62c5568c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-56f315d6\" data-id=\"56f315d6\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-54007e69 elementor-widget elementor-widget-text-editor\" data-id=\"54007e69\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 09-08-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<!-- wp:paragraph {\"fontSize\":\"medium\"} -->\n<h4 class=\"has-medium-font-size\"><strong>What is this website about\uff1f<\/strong><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p>This website is about my personal thoughts and insights on value investing. On the website, I will post my recent research write-ups, general thoughts on the philosophy and practice of value investing, as well as some investment principles. I sincerely hope that the content on this website will provide the viewers with value at the very least.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"medium\"} -->\n<h4 class=\"has-medium-font-size\"><strong>What drove me to create such a website?<\/strong><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p>My plan is to conduct investment research on a great number of companies (mainly retailing and banking) by myself in my free time, and then develop my investment thesis on some of the opportunities that is deemed to have a substantial upside and a minimal downside. At first I would like to publish the write-ups on<em> Seeking Alpha<\/em> or <em>Value Investor Club<\/em>, but later I realised that since I consider investment research to be something that I am willing to do even at the age of 90, it would be much better to write everything on yibodomus.com in order to preserve a more comprehensive overview about my investment thinking. In this way, I can keep a record of my ideas at any given time period, and interact, if possible, with other value investors.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"medium\"} -->\n<h4 class=\"has-medium-font-size\"><strong>What kinds of research write-ups will I post on this website?<\/strong><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p>I tend to be very flexible about investment that I will cover. I always use <strong>bottom-up<\/strong> methods to conduct my research. Concerning the scope, I am personally economy agnostic, country agnostic and market cap agnostic.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p><strong>Countries: <\/strong>I started with US and some other English-speaking countries. Generally speaking, those countries have 1) a long-existed financial market 2) better protection for property rights 3) better information disclosure and corporate governance. Then I enlarged my circle of competence to include more and more countries in my scope.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p><strong>Types: <\/strong>I am especially interested in <strong>GARP<\/strong> (growth at a reasonable price; 15-25% growth), <strong>undervalued stalwarts<\/strong> (~10% growth; waiting for multiple expansion or else), <strong>spin-offs<\/strong> (maybe even other special situations in the future), and <strong>cyclicals<\/strong> (a close examination on the industries and companies is needed). I will also cover some other types of investment for the sake of learning and practice.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p><strong>Economy: <\/strong>I have a degree in economics. As a result, I tend to minimise any kinds of assumption based on economic predictions, unless the company\/industry is directly impacted by some clear economic dynamics. After all, I am not equipped with a crystal ball to tell fortune or predict economic conditions, nor does the economy function precisely according to the models and formulae I learned.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p><strong>Style: <\/strong>I tend to make it more personal. My ultimate goal is to better illustrate my point, not to sell my idea.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"medium\"} -->\n<h4 class=\"has-medium-font-size\"><strong>What preparations did I make upfront for value investing?<\/strong><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p><strong>a) Books:<\/strong> I read about 90 books on investing over the last year, most of which are on value investing. The book that has the hugest influence on me is <em>One Up On Wall Street<\/em>. Many books concerning the commercial world, mostly biographies and professional books, also contribute to my understanding of business dynamics and how to recognise a great entrepreneur.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p><strong>b) Annual reports:<\/strong> I read hundreds of annual reports since 2022. I also check the proxy statements and shareholder letters. What caught my interest is the company that demonstrates features of deep moats, unique assets\/business models, solid financial positions, incentive plans that align the interest of employees and management with shareholders, long-termist operation philosophy, etc.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p><strong>c) Value Investor Insight:<\/strong> I read all the issues of <em>Value Investor Insight<\/em> since 2017. I always try to evaluate the authors&#8217; investment theses and line of thinking by myself. (an observation: when the author uses some exaggerated or even extreme languages to describe a business, chances are high that things will never )<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p><strong>d) Value Investor Club:<\/strong> Sometimes I source my idea from the write-ups in Value Investor Club. It is very handy to know about some great businesses that draw value investors&#8217; attention.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p><strong>e) 13F of other value investors:<\/strong> It is always a good thing to learn from great value investors, including but not restricted to examining their holdings.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p><strong>f) Letters to investors or memo by some value investors<\/strong><\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p><strong>g) Interviews and public lectures: <\/strong>for example, I watched every single video on the YouTube channel <em>We Study Billionaires<\/em>, which is in essence a channel on interviews with value investors.<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"medium\"} -->\n<h4 class=\"has-medium-font-size\"><strong>How do I source my ideas on investment research?<\/strong><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p>I use various methods to find potential investment. 1) my own screening by screening tools 2) 52-week lows and <em>52-week highs<\/em> 3) news and idiosyncratic events 4) going through annual reports 5) 13F 6) VIC and VII 7) real life experience from myself and others (mostly to-C business; Internet creates opportunities) 8) temporarily unloved and under-appreciated business and industries 9) insider trading (low price combined with substantial insider buying) 10) spin-offs<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph {\"fontSize\":\"medium\"} -->\n<h4 class=\"has-medium-font-size\"><strong>The value investors I admire most?<\/strong><\/h4>\n<!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p>Peter Lynch, Joel Tillinghast, Ben Gratham, Nick Sleep, Terry Smith, John Templeton, Joel Greenblatt, Seth Klarman, Fran\u00e7ois Rochon, Mohnish Pabrai, Mark Mobius. Did I forget to mention Charlie Munger and Warren Buffet?<\/p>\n<!-- \/wp:paragraph --><!-- wp:paragraph --><!-- \/wp:paragraph --><!-- wp:paragraph -->\n<p>\u00a0<\/p>\n<!-- \/wp:paragraph -->\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>What is this website about\uff1f This website is about my personal thoughts and insights on value investing. On the website, I will post my recent research write-ups, general thoughts on the philosophy and practice of value investing, as well as some investment principles. I sincerely hope that the content on this website will provide the&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/yibodomus.com\/index.php\/2023\/08\/22\/q-a\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;Q &#038; A&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/yibodomus.com\/index.php\/wp-json\/wp\/v2\/posts\/86"}],"collection":[{"href":"https:\/\/yibodomus.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/yibodomus.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/yibodomus.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/yibodomus.com\/index.php\/wp-json\/wp\/v2\/comments?post=86"}],"version-history":[{"count":6,"href":"https:\/\/yibodomus.com\/index.php\/wp-json\/wp\/v2\/posts\/86\/revisions"}],"predecessor-version":[{"id":240,"href":"https:\/\/yibodomus.com\/index.php\/wp-json\/wp\/v2\/posts\/86\/revisions\/240"}],"wp:attachment":[{"href":"https:\/\/yibodomus.com\/index.php\/wp-json\/wp\/v2\/media?parent=86"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/yibodomus.com\/index.php\/wp-json\/wp\/v2\/categories?post=86"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/yibodomus.com\/index.php\/wp-json\/wp\/v2\/tags?post=86"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}