Tag Archives: gathering

Why Event Driven Investing Is Gathering Greater Importance

I used to use computer software (Microsoft Money and Quicken) but am doing things by hand now. I redid everything by hand and am still tweaking the layout, and working backwards on prior years. In the past I used the Dow Jones Wilshire Global Total Return index, which is the broadest global index and covered around 98% of stocks by market cap (do note that developed countries still constitute most of the market cap). I have historically measured myself against 3 indexes: S We Will Do Well? However, with a little more discipline and a simple but solid long term plan or strategy, it should be possible to neutralise some of these effects. Just a reminder that the Year End Fair Value number is based on the long term secular growth of the earning power of productive capacity of the US economy not the near term cyclical influences. In this post, I shall attempt to calculate the intrinsic value of some stock using PER and EPS. It was only after reading the book, Value Investing: Tools and Technique for Intelligent Investment by James Moniter, in 2011 that I8 realise the need for a more consistent value-focus strategy. Investment experts do portfolio risk analysis and investing decisions based on a multitude of factors.

Rather I apply it to each stock in my Portfolio and when a stock reaches its Sell Half Range (overvalued), I reduce the size of that holding. Also the market seemed overvalued and didn’t find anything attractive so no long-term investments were made. Since I started seriously investing after a few years of absence, here is how my portfolio performed in 2016. I didn’t make any long-term investments and didn’t have any from before so it is sort of an unusual portfolio. I had managed to keep my portfolio at 16 companies – just 1 additional company from my last portfolio update. My portfolio returned around 5.8% in 2016. The return isn’t very good and I underperformed the indexes. I was mostly in cash the last few years so likely underperformed the market (hope to post historical figures in the future). I was exclusively involved in risk arbitrage and liquidations last year.

Investors differ in location, profession, age, risk tolerance, consumption preferences and many other aspects. When a real estate owner does not pay their property taxes, 27 states and 1,152 cities and counties sell tax lien certificates to investors. That leaves investors in the difficult position of determing what level of faith should be placed in financial companies that were so easily duped by their Wall Street counterparts. If you are measuring yourself, don’t forget to use total return index, as opposed to price-only index (which leaves out dividends). It took way too long and the annualized return was just adequate and less than what I was estimating. When I read the hub you wrote about games, I was impressed with the way you sometimes use games to teach your students concepts. If you and your loved ones actually use the company’s products, you’ll feel more confident that it will rebound.

I think these latest incidents, particular the mouse one, will probably take at least 6 months to a year for sales to recover to even post e.coli levels. I ended the year with around 79% in cash, which was probably down to 25% cash at some point in the year. When you buy a property, you usually put down a deposit of around 5% to 25% of the purchase price. This means that any shock to the market will cause the price to rise. The beauty of compounding will only happen near the tail end and then it will make the Average looks attractive. Then you will feel pressured to sell and cut your losses. Do note that this is a weighted towards large-cap stocks so if you invest in smaller companies then you may want to pick another index. It is not possible for everyone to purchase one and even if they can, it may not be possible to cover the entire house with the appliance as it pinches the pockets of the buyer.