Year in Review: The 20 Most Popular Re-ThinkWealth Articles of 2020
30 December 2020
20. Does Warren Buffett Invest In Options? Yes, But It’s Not What You Think
Most people will not associate The Oracle of Omaha with options. Because after all, options are derivatives – which derive their value from the underlying securities such as stocks.
And from Berkshire Hathaway 2002 annual letter Warren Buffett said:
“In our view, however, derivatives are financial weapons of mass destruction, carrying dangers that, while now latent, are potentially lethal.”
But Buffett made Billions from options, and here’s how he does it.
19. Nasdaq Is Officially In A Correction Territory: What Is Next?
As of 9 September 2020, Nasdaq is officially in the correction territory – which is defined as a 10% drop from its most recent peak.
I shared in the article that ultimately the market will usually reflect the true value of the business in the long run.
If the business does well in the long run, I think the stock will also do well in the long run – provided we do not purchase them at a ridiculous price.
Read the article here.
18. Peter Lynch One Up on Wall Street Summary | Ultimate Guide
Peter Lynch is a legendary value investor that has one of the best investing track records ever. He managed the Magellan Fund at Fidelity Investments between 1977 and 1990 and returned an average of 29.2% per year in those times.
In this article, I shared some of the lessons I learned from reading his book.
17. 8 Value Investing Lessons From Beating The S&P 500 Return So Far
There are many investing lessons that I have learned throughout these past five, six years of outperforming the S&P 500,
In this article, I thought to share just eight of the value investing lessons and reflections I have had.
16. My 5 Key Takeaway From AEM Holdings 1H 2020 Results
AEM revenue was $172.5 mn in 2H19 which consisted of 54% from tools & machines with 46% from consumables & services.
In 1H20, total revenue increased by 58.6% to $273.7 mn consisting of 51% tools & machines and 49% consumables & services.
It is an impressive top-line growth rate no matter how you look at it.
Read the article here.
15. Here Are My Five Key Takeaway From Tesla 2020 Battery Day
Tesla is not a typical stock that investors like Warren Buffett buy for a reason.
Although I do feel that Elon Musk is a fantastic marketer and an innovative entrepreneur and I have been curious about the Tesla story for quite some time, it can be hard for certain people to justify its seemingly lofty valuations.
Nevertheless, as I try to understand Tesla better, here are my five key takeaways from Tesla 2020 battery day.
14. Is Bitcoin Worth Investing in 2020? Here’s My Quick Thoughts
At its essence, Bitcoin is a computer file that can be stored in what we call a ‘digital wallet’ in our smartphone or computer.
It was created back in 2009.
Every single transaction is recorded in a public list called “blockchain”.
As of now, Bitcoin is not illegal in many countries around the world.
How will the future of Bitcoin be like? Read my thoughts here.
13. How Warren Buffett Use Put Options to Increase Berkshire’s Returns
1. Warren Buffett usually sells long term dated options of 6 months or more and uses the cash proceeds to generate investment returns.
2. He also forecast in advance if the securities that he sold put options on fell below the strike price by the end of the period of the contract, he would have enough cash coming from the premiums he got and the investment returns from those premiums have generated (plus I believe with cash on hand too).
3. As a gauge, based on the above example, he generated about 13.2% absolute gain on his put options ($4.9/$37.1 billion x 100%).
Read the article here.
12. My 5 Key Takeaways From SPH FY2020’s Earnings
The first thing that comes to mind when we hear SPH is the newspaper.
SPH owns The Strait Times, Business Times, and many other media properties.
And media normally makes money through ads.
SPH media division revenue is now less than half of what it used to be in FY 2014.
I think there is a long-term structural headwind with the SPH media division.
Read my thoughts here.
11.The Ultimate List of Investment and Finance Blogs or Websites in Singapore
Being an avid follower of many investment and finance blogs or websites in Singapore, I thought why not I create an article sharing the ultimate list for it.
The investment and finance blogs or websites listed here did not pay a cent to be listed here. These are just some of the blogs and websites I find interesting for the public to know about.
These websites and blogs are not listed in any order of priority and it will be continually updated in the future.
I hope this list will add some value to your personal finance or investment journey.
10. Here Are 4 Reasons Why Intel Stock Plunged 16% Last Friday
In this article, I mentioned that I think Intel might be losing its long-term competitiveness in the market.
In their industry, technological advantages are an important source of competitive advantage. Being big and having economies of scale is no longer enough.
And so far, this article has aged well as Intel continues to underperform.
However just yesterday, an activist sent a letter to Intel encouraging them to revamp their operations, which led to the stock being up a little yesterday.
9. The Eight Accounting Fraud or Red Flag Signs To Look Out In Stocks
In this article, I shared the eight signs of potential fraud in our stocks portfolio that we should be careful of.
These are eight simple potential warning signs of bad financial reporting or early markers of fraud for stocks in our portfolio that I personally find useful.
Kindly note that these warning signs do not necessarily mean that a company is 100% confirmed to fraudulent; it is just some of the markers that I think we should be wary of.
8. My 3 Thoughts on Yesterday’s Deepest US Market Decline Since June
I think valuation should form a cornerstone of every investor’s decision of what to invest and when to buy, hold, or sell their stocks.
Without understanding valuations and investor’s mentality, we are blind.
I understand that for certain amazing companies, there will be a premium that has to be considered to be paid to participate in their growth. But I am always cautious as to what is a reasonable price to pay for that premium.
Remember, to finish first, we must first finish.
Read the article here.
7. The 100+ Most Intelligent Value Investing Quotes of All Time
“Invest for the long haul. Don’t get too greedy and don’t get too scared.” – Shelby M.C. Davis
This list summarizes 100+ of the best investing quotes (and most intelligent) of all time.
They are spoken from some of the best value investing minds in the industry that I have modeled after for my value investing philosophy.
Both that have passed away (Benjamin Graham) and those that are still with us today.
Feel free to bookmark this page because this list will constantly be updated.
6. The Intelligent Investor Summary (Ultimate Guide) | Re-ThinkWealth
Warren Buffett said that The Intelligent Investor is the best book ever written on investing. This book contains over 600 pages of wisdom. The wisdom that serves as the building blocks for all value investors.
5. Is Snowflake (NYSE: SNOW) Worth Investing? Here Are My 5 Takeaways
Snowflake does cloud computing that implements a variable pricing model, which can be at times more attractive than fixed packages offered by more prominent competitors.
The market for cloud computing is enormous and expanding.
It is roughly a $55 billion market right now.
Read the article here.
4. My 5 Key Takeaway From Temasek Portfolio Value in 2020
Although I know that Temasek has a huge portfolio, I was surprised to see that it is around the size of Warren Buffett’s.
As of 31 March 2020, the net portfolio value or NPV is at S$306 billion.
Read my article here.
3. Will The Stock Market Crash One More Time in 2020?
My Bet: In 2020, The Stock Market Will Not Crash Again
Yes, it is hard to predict where the stock market is heading in the short term.
But my bet with regards to virus-related concern is that I do not think that we will crash again back to March-April Lows in 2020 just because of the virus.
This article was written on 31 August 2020 and so far, I have been proven right as the market has recently hit another all-time high.
2. Kodak Stock is Up Over 1,400% in Two Days. Does It Make Sense?
Eastman Kodak Company (NYSE: KODK) opened at $2.15 (Monday) on July 27, 2020, and closed at $33.20 (Wednesday) by 29 July 2020. That is a 1,444.19% increase over a two day period.
In this article, I am going to give you some background on the Kodak company, the reason for the rally as well as my thoughts on whether it made sense or not. I will conclude with some lessons that I think we can apply to this kind of situation.
In the article, I mentioned that the price at $33.20 does not make sense and I have been proven right with the shares currently at $8.37.
1. Is SIA Shares Worth Buying? Here Are My Thoughts (August 2020)
Before COVID-19, SIA is already not a great business to own even when times were “normal.”
All of us know that the airline business is a very capital intensive business.
For SIA, their free cash flow has been negative most of the time in the last five years.
That means that after deducting their operating cash flow for capital expenditures, they are left with negative cash flow.
Read the article here.
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Chris Lee Susanto
Founder of the value investing blog Re-ThinkWealth.com (if you type “value investing blog” in Google, his blog is likely the first one).
Chris is a big proponent of business-like stock investing. He invests in companies where there is value to be found, be it a turnaround, depressed, value, or quality growth company (compounders). He either buys the stock outright or he profits through selling put or selling call options – or buying call options (buying and selling options are especially dangerous for those who do not know how to properly execute it).
Some of the places where Chris has been invited to speak or have added value as a mentor or writer includes Singapore Polytechnic, SMU Institute of Innovation and Entrepreneurship (IIE), Dollars and Sense, The New Savvy, Value Walk Blog, Investment Moats, NUS Tembusu College, NUS Investment Society, CGS-CIMB Singapore and Internationally in Myanmar.
Being a full-time investor himself, Chris knows that he did not beat the S&P 500 return so far (as of the time of this writing) by listening to stock tips. So, when he teaches, he also doesn’t believe in giving stock tips as it is not sustainable for you in the long run. As of the time of this writing, he is still open to new application in his Value Investing Mentorship™ Club. Feel free to also join his free investment telegram channel here.
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