How to apply the value investing model to today's high-growth Asian companies
This revised edition of Value Investing in Growth Companies serves as a step-by-step guide that lets investors combine the value investing and growth investing models to find excellent investment opportunities in emerging Asian companies. Though these two investing styles are very different, the authors' proprietary "jigsaw puzzle" model integrates them into a holistic investing approach that will help readers enjoy the kind of extraordinary results that investors like Warren Buffett or Peter Lynch built their fortunes on. This model focuses on four vital criteria that, when combined, pinpoint excellent companies in which to invest. Those criteria are: simple business models, quality management, healthy financial numbers, and accurate valuation. This book shows investors how to find growth companies in Asia that combine these four criteria for nearly surefire profits.
* Offers a sensible and stress-free investing strategy that is ideal for anyone looking for investment opportunities in fast-growing Asian countries
* This revised edition includes new case studies focused specifically on Asian companies and their unique characteristics
* Perfect for investors who want to focus on high-growth, small-cap companies that offer excellent potential returns
Autorentext
Rusmin Ang and Victor Chng are the Chief
Investment Analysts at 8 Investment Pte Ltd. Together they
specialize in unearthing high-growth, small-cap companies. 8
Investment was founded in 2008 with the founders' intention of
inspiring investors through the sharing of successful learning
experiences in business and investing. Driven by the values of
integrity, responsibility, mastery and growth, the company has
achieved excellent financial results with an average 139% growth in
revenue annually over the last three years. Subscribing to its FASS
business model (Feasibility, Adaptability, Sustainability and
Scalability), 8 Investment has built one of the largest networks of
value investors in Asia and developed a comprehensive range of
investing books, CDs and digital learning programmes to cater to
this growing audience. Their seminars and courses have been
attended by over 70,000 people throughout Asia in the last six
years.
Inhalt
Foreword xi
Preface xiii
Rusmin Ang's Journey xiv
Victor Chng's Journey xvi
How We Met xvii
Overview of the Contents xix
Acknowledgments xxi
Chapter 1 The Making of a Value-Growth Investor 1
The Common Journey of New Investors 1
Short-Term Trading to Long-Term Investing 2
Growth Investors 4
Value Investors 6
Value Investors versus Growth Investors 7
Value-Growth Investors 9
Warren Buffett's Journey 10
Value-Growth Investors 12
Definition of Growth Companies 13
Common Misconceptions about Growth Companies 14
Myth 1: The Higher the Growth Rate, the Better the Company 15
Myth 2: Fast Growers Are Companies in Fast-Growing Industries 16
Myth 3: You Cannot Buy Growth Companies at Bargain Prices 16
Myth 4: Fast Growers Are Companies That Have Small Market Capitalization 17
Myth 5: Small and Fast-Growing Companies Are Not Covered by Analysts and Institutions 18
Myth 6: Growth Companies Pay Very Little Dividend 18
Why Value-Growth Investing? 19
Capital Appreciation or Intrinsic Value Appreciation 20
Dividend Growth and Passive Incomes 23
Summary 26
Chapter 2 The Secrets of Successful Value-Growth Investors 29
Healthy Thoughts Lead to Sustainable Results 29
Mindset 1: Understand the Power of Compound Interest 29
Mindset 2: Start Young! 33
Mindset 3: Be a Long-Term Investor! 35
Mindset 4: Never Leverage to Invest in the Long Run! 36
Mindset 5: Exercise Independent Thinking 38
Mindset 6: Be Emotionally Stable 39
Mindset 7: Think Contrarian When Investing 41
Mindset 8: Understand Mr. Market (Effi cient Market Theory versus Mr. Market) 43
Summary 46
Chapter 3 The Jigzaw PuzzleFour Pieces to Value-Growth Investing 47
The Jigsaw Puzzle Model 47
The Art and Science of Investing 49
Looking for the Right Information 53
Information Released by the Company 53
Information from Outsiders 57
Summary 58
Chapter 4 BusinessThe First Piece of the Puzzle 61
Understand a Company's Business Model 61
Simple Business 63
Circle of Competence 65
Going Beyond the Limit 67
Competitive Advantage 70
Knowing the Competitors 73
Think Like a Customer through the Scuttle-Butting Process 74
Finding Future Growth Drivers 76
Understanding RisksWhat Can Go Wrong? 78
Summary 79
Chapter 5 ManagementThe Second Piece of the Puzzle 81
Management Forms the Cornerstone of a Business 81
Criterion 1: Trustworthiness 83
Criterion 2: Candid in Reporting 86
Criterion 3: Aligned with Shareholders' Interests 88
Criterion 4: Track Record/Experience 90
Criterion 5: Visionary Managers 92
Summary 96
Chapter 6 NumbersThe Third Piece of the Puzzle 97
Numbers Do Not Lie 97
Numbers to Look at When Reading the Income Statement 98
Revenue 98
Cost of Goods Sold 100
Gross Profit 100
Expenses 102
Net Profit 103
Earnings per Share (EPS) 106
Numbers to Look at When Reading the Balance Sheet 109
Noncurrent Assets 110
Current Assets 112
Noncurrent Liabilities 114
Current Liabilities 115
Shareholders' Equity 116
Current Ratio 117
Return on Equity 118
Debt-to-Equity Ratio 120
Numbers to Look at When Reading the Cash-Flow Statement 122
Cash Flow from Operations 123
Cash Flow from Investment 124
Cash Flow from Finance 127
Summary 129
Chapter 7 ValuationThe Fourth Piece of the Puzzle 131
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