The reason I asked this question was that I did some back testing and for the last 2 to 3 years, value investing especially in the form of NCAV did not seem to work in Hongkong Market. Thus, my question to you all since many of u are also into value investing.
In addition, I understand that value investing probably need to hold the company for 2 to 3 years. Then if it does not work for the last 2 to 3 years, will it mean that it is not a good method to use.
However, many of you also pointed out the liquidity and sentiments are the issues in HK market. It is driven by the retail investors. Therefore more volatile.
As must as I still believe in value investing, I feel in HK market, there is something more than value investing (in terms of NCAV) that works there.
Hmm.... I actually found out some criteria that is relevant. But I am still uncomfortable to use it in the HK market. So probably, I will continue in search of the special important criteria to ensure value investing works in HK market.
Reply to @marginofsafety : Thanks for your comments. What you said make sense and I do understand.
But that is probably in the area of me being an investor. Nevertheless, in my investing journey, I realise value are realised after 2 years and maximum 3 years. So that is why I have this view.
However, when the back-testing results comes out, this didn't happen. So I was surprised.
On the other hand, in the area of an educator and a trainer, I understand everyone do not have the patience and understanding to wait so long. Furthermore, to find value from other criteria, these students may find it a hassle. Thus, I felt it should be better for them if I were able to find a simpler way of finding value companies.
Value investing works by allowing the investor to identify and pick promising fundamentally good HK listed companies to invest at their attractive bargain prices. But HK market because of it's huge trading liquidity there especially for many stocks is still primarily short term sentiment driven. So, I will think using a technical point of view to buy and sell at suitable price points have to be factored in. If not, even buying cheap can still get cheaper for a very long time if the trading sentiment goes against the direction the investor is vested or wanes.
And the volatility is higher in the HK market as compared to Singapore market. So, the investor must be able to position himself/herself to make good use of the high volatility to his/her advantage and not be instead emotionally overcome by it and make wrong investment decisions. In terms of temperament, I would think an investor needs a strong temperament to handle the high volatility there in the HK market.
@jeremyowtaip @DareDevil @marginofsafety @AvgJoe @EmmaTeo @Master_GongJiaowei
The reason I asked this question was that I did some back testing and for the last 2 to 3 years, value investing especially in the form of NCAV did not seem to work in Hongkong Market. Thus, my question to you all since many of u are also into value investing.
In addition, I understand that value investing probably need to hold the company for 2 to 3 years. Then if it does not work for the last 2 to 3 years, will it mean that it is not a good method to use.
However, many of you also pointed out the liquidity and sentiments are the issues in HK market. It is driven by the retail investors. Therefore more volatile.
As must as I still believe in value investing, I feel in HK market, there is something more than value investing (in terms of NCAV) that works there.
Hmm.... I actually found out some criteria that is relevant. But I am still uncomfortable to use it in the HK market. So probably, I will continue in search of the special important criteria to ensure value investing works in HK market.
Reply to @marginofsafety : Thanks for your comments. What you said make sense and I do understand.
But that is probably in the area of me being an investor. Nevertheless, in my investing journey, I realise value are realised after 2 years and maximum 3 years. So that is why I have this view.
However, when the back-testing results comes out, this didn't happen. So I was surprised.
On the other hand, in the area of an educator and a trainer, I understand everyone do not have the patience and understanding to wait so long. Furthermore, to find value from other criteria, these students may find it a hassle. Thus, I felt it should be better for them if I were able to find a simpler way of finding value companies.
Value investing works by allowing the investor to identify and pick promising fundamentally good HK listed companies to invest at their attractive bargain prices. But HK market because of it's huge trading liquidity there especially for many stocks is still primarily short term sentiment driven. So, I will think using a technical point of view to buy and sell at suitable price points have to be factored in. If not, even buying cheap can still get cheaper for a very long time if the trading sentiment goes against the direction the investor is vested or wanes.
And the volatility is higher in the HK market as compared to Singapore market. So, the investor must be able to position himself/herself to make good use of the high volatility to his/her advantage and not be instead emotionally overcome by it and make wrong investment decisions. In terms of temperament, I would think an investor needs a strong temperament to handle the high volatility there in the HK market.
Reply to @jeremyowtaip : Precisely it is not for the faint hearted
When China sneezes, HK is the first to catch a cold
Reply to @DareDevil : That is one of the considerations