Lessons from 17th Century Tulipomania

How much would you pay for a stalk of tulip? If you haven’t heard of the Tulip Craze in the 17th century, it might surprise you how much people were willing to pay for a stalk of tulip. Courtesy of commons.wikimedia.org The Tulip Craze takes us back to 17th century Holland when speculators were interested … Continue reading Lessons from 17th Century Tulipomania

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Investing in Companies with Economic Moats can give you an Edge

One of Warren Buffett’s investment rules is to only invest in companies with an economic moat. So what exactly is an economic moat? “In business, I look for economic castles protected by unbreachable ‘moats’.” - Warren Buffett Simply put, the metaphoric “castles” are companies and the moats around those castles are special qualities that they … Continue reading Investing in Companies with Economic Moats can give you an Edge

What to do in a market correction?

For centuries, capital markets have tide over multiple boom and bust cycles. While each market cycle can be attributed to different events in the economy (i.e. Black Monday, Black Friday, dotcom bubble, sub-prime mortgage crisis), there are inherently two emotions that move markets in either direction - FEAR & GREED! The emotions of market participants … Continue reading What to do in a market correction?

CapitalistLAD Guide to Ratios: P/S Ratio

Although not as common as the P/E Ratio, the P/S Ratio is also a very useful indicator when seeking for above average returns. Billionaire investment guru and bestselling author Kenneth Fisher believes that the Price to Sales Ratio reveals a lot more than the Price to Earnings Ratio.   What is the Price to Sales … Continue reading CapitalistLAD Guide to Ratios: P/S Ratio

CapitalistLAD Guide to Ratios: P/B Ratio (Part 2)

P/B Ratio Case Study: Investment arbitrage on KeppelLand *Read part 1 of this article if you haven't already. In early 2014, I bought KeppelLand, a property developer, for $3.30. At $3.30, the P/B ratio was about 0.78. This meant that the stock was trading at a 22% discount to its book value. The P/E was ratio … Continue reading CapitalistLAD Guide to Ratios: P/B Ratio (Part 2)