Who Is The Founder of Re-ThinkWealth?
Hey there, my name is Christopher, but you can just call me Chris. I was born in Indonesia and I am a resident in sunny Singapore. I come from a middle-class Indonesian family which believes deeply in the value of hard work.
I have two areas in my life that I am particularly passionate about – the first is making great investments through a robust analytical process, and the second is growing my family business, which creates Quality Retail Packaging at www.immprinting.com and www.indomasprint.com.
This is a value investing blog.
Why This Blog Focuses On Value Investing?
Wanting to find the best way to invest in the stock market, I have attended expensive investment courses, read countless of books and watched countless of videos.
I have since concluded that the best way to make money consistently from the stock market, in the long run, is by using the art of value investing.
Value investing is not complicated. It is not easy either. It requires a combination of art and science. A combination of character and an average intellect. Value investing can be employed with all the free information out there— mainly from company’s annual report.
Value investing is not something that I invented. The most successful investors in the world such as Warren Buffett, Peter Lynch, Seth Klarman and Benjamin Graham uses value investing strategies.
Fortunately for us, it is not hard to model after them as they have released many pieces of information via annual letters to their shareholders and even books– sharing their knowledge on value investing.
Luckily for you, you do not need to read all the value investing information out there. This blog compiles the key rules of value investing that I used personally to achieve success in investing.
Seth Klarman said that value investing could be something that is in a person’s blood. There are people who just don’t have the patience and discipline to do it, and there are people who do. It leads him to think that value investing is genetic.
I agree that value investing requires one to have patience and discipline. Do you think you have what it takes to learn the art of value investing?
My Role Model In Value Investing
There are a couple of famous investors that I modelled after for The Art of Value Investing:
1. Warren Buffett
“Be greedy when others are fearful and be fearful when others are greedy.”- Warren Buffett
The first one on my list is none other than Warren Buffett, also known as the “Oracle of Omaha”. He also happens to me my favourite investor of all time— what he says simply makes sense.
Warren was born in Nebraska in 1930. From a young age, he demonstrated a remarkable ability in business.
At the age of 26, he formed Buffett Partnership Ltd utilising the techniques he learned from his mentor Benjamin Graham to pick undervalued company’s stocks.
By the age of 35, he controlled Berkshire Hathaway, a textile company via accumulating enough of its stocks to gain majority control since the age of 30.
Even though Buffet Partnerships Ltd was successful, by the time Warren was 39 years old, he dissolved the firm to focus on developing Berkshire Hathaway.
In Berkshire Hathaway, Warren phased out its textile manufacturing division and started buying assets in insurance (GEICO), Media (The Washington Post) and oil (Exxon Mobil). He also bought a huge stake in Coca-Cola and became its director from 1989 to 2006.
Undoubtedly, he is one of the most respected investors of all time and he has a kind heart as well.
Since 2006 till 2016, Warren had donated more than $24.3 Billion. And he has pledged to give away 99% of his wealth to philanthropic causes.
83% of it will go to Bill & Melinda Gates Foundation and a lot of the rest will go to foundations set up by his children.
The biggest key takeaway that I learned from Warren is his absolute control in the price he pays for his investments.
2. Peter Lynch
“I’ve found that when the market’s going down and you buy funds wisely, at some point in the future you will be happy. You won’t get there by reading ‘Now is the time to buy.’”- Peter Lynch
Peter Lynch is a famous investor who has generated annual returns of 29% from 1977 to 1990 when he was the head at Fidelity Magellan. When he took over Fidelity Magellan, the firm only had $20 Million but in 13 years, he increased it to $14 Billion.
He started off as a caddy to the president of Fidelity Magellan and other investment bankers at the Brea Burn Country Club. After being friends with the president, he was provided with the opportunity to intern at Fidelity Magellan in 1966, a year after he graduated from Boston College.
From 1967 to 1969, Peter joined the army to serve the United States. In 1969, when he returned from the army, he was awarded a permanent job at Fidelity Magellan.
After working hard for 6 to 7 days a week, 8 years later in 1977, he was a portfolio manager for Fidelity Magellan.
The biggest thing that I learnt from Peter is simply to invest in only what you know.
3. Seth Klarman
“Value investing requires a great deal of hard work, unusually strict discipline, and a long-term investment horizon. Few are willing and able to devote sufficient time and effort to become value investors, and only a fraction of those have the proper mind-set to succeed.”- Seth Klarman
Seth Klarman founded the Baupost Group in 1982.
By 2013, it is considered one of the top hedge fund companies in the world with nearly $30 Billion in assets under management.
It has a return of nearly 20% per year and its success rate is considered remarkable. So remarkable that even Warren Buffett is rumored to be a big fan of his work. Because like Buffett, Seth too is a value investor.
Seth believes that the stock markets are inefficient. He looks for investments that trade below its intrinsic value.
He is also very patient in waiting for stocks to be cheap before buying in. For example, it is reported that at times his personal portfolio has over 50% cash while he is waiting for a good investment opportunity.
For every investment, he believes that a margin of safety has to be incorporated.
4. Benjamin Graham
“An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return. Operations not meeting these requirements are speculative”- Benjamin Graham
In 1894, Benjamin Graham was born.
He did not have a perfect childhood as his father passed on after migrating to America from London not long ago and his mother lost a lot of money in 1907 during an economic crisis.
Graham was always a smart student. He got into Columbia University and was even offered to teach there after graduation.
He declined and instead, he worked as a chalker on Wall Street. Not long after that, he began to do investment research for the firm that he worked in– as his natural gift for finance began to shine.
In 1926, Graham and Jerome Newman decided to create an investment partnership.
By 1929, the financial market crash happened and it almost demolished the partnership.
It was so bad that Graham’s wife at one point had to return to work as a dance teacher.
The 1929 crash taught Graham a valuable lesson which was being penned down into a book called Security Analysis.
The book proposed that it is entirely possible to invest in stocks profitably as long as we use the concept of ‘intrinsic value’ and buying stocks at a discount to that ‘intrinsic value’.
Value Investing Strategies Coupled With Theory Of Inversion
I believe that stocks are not just ticker symbols with numbers going up and down and looking at charts. Behind every stock, there is an underlying business!
I believe in buying great businesses with superb competitive advantage at a low price.
This strategy comes together with my core theory of inversion. Inversion meaning that in every investing idea, we have to scrutinise on why it would fail. This will result in us being more conservative, and being conservative is the key to protecting and growing wealth in the long run.
The meaning behind my blog name is to remind everyone to always rethink our investment ideas and question traditional assumptions- to be conservative in order to grow wealth over time!
Therefore, I have never used leverage in investing in equities and options.
Charlie Munger once said, “Invert, always invert: Turn a situation or problem upside down. Look at it backwards. What happens if all our plans go wrong? Where don’t we want to go, and how do you get there? Instead of looking for success, make a list of how to not fail instead – through preventing sloth, envy, resentment, self-pity, entitlement, all the mental habits of self-defeat. Avoid these qualities and you will succeed. Tell me where I’m going to die, that is, so I don’t go there.”
“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”- Mark Twain
Enjoy my blog and my greatest hope is that you will be able to learn the art of value investing.
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Applying a conservative concept, my Vision of Re-ThinkWealth is to be a value-adding source of information on Value Investing.
- The source of valuable investing information for people interested in investing
- Embracing the concept of inversion in our investing
- Being conservative to protect and grow wealth over time
- Learning about the various financial models while knowing that valuation in itself is an art and not a science
- Platform for different business and investing experts and beginners to collaborate and enhance value
Purpose Of This Blog
Churn out quality investing articles on value investing stock analysis, personal finance self-improvement, investments and investor psychology.
How Am I Doing It
I believe that having passion is crucial! It is a matter of what do we do when no one is watching and when there is no certainty of reward hanging in front of us– it answers the question of, who are we as an individual?
Passion is the inner engine that drives people to work hard, to strive for perfection in their craft.
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