Friday, 7 October 2022

12 Blue Chips you wish you'd bought in 1998

Total return for 1,000 shares bought on Sept 1, 1998 as at Nov 23,2007.


Company  Sept 1, 1998  Nov 23,2007  Total return %

Public Bank  RM0.363   RM 20.32   6,023%

Hap Seng Con 0.17  9.39  18,327%

IOI  0.10  4.52  27,082%

Nestle  5.089  91.98  1,707%

PBB  0.538  16.76  8,207%

KLK  1.191  24.26  2,955%

MBB  0.514  9.21  3,641%

Tenaga  0.933  14.84  2,385%

TM  0.384  6.00  5,484%

GEM  0.367  5.10  6,848%

BAT  3.76  38.06  912%

PetGas  1.853  16.54  793%


To know which blue chips to bet on for the decades to come, a key question to ask is if the company is future-proof and is likely to continue to have a stable and sustainable earnings stream for a long time to come.




https://assets.theedgemarkets.com/Infographic_TEM1190_67_theedgemarkets.png


Thursday, 4 August 2022

Margin of Safety

The function of the margin of safety is, in essence, that of rendering unnecessary an accurate estimate of the future. 

If the margin is a large one, then it is enough to justify the assumption that future earnings will roughly approximate those of the past in order for an investor to feel sufficiently protected against the vicissitudes of time.

Tuesday, 14 June 2022

Fundamentals of Alphabet Inc. Cl C GOOG (U.S.: Nasdaq)

INCOME STATEMENT ANNUAL 

Fiscal year is January-December. All values USD Millions.
 2021
 2020
 2019
 2018
 2017 5-year trend 

 Sales/Revenue
 257,488
 182,350
 161,402 
136,958
 111,024 

 Gross Income
 146,549
 97,618
 89,506
 77,409
 65,441 

 Gross Profit Margin 56.91 

 Non-Operating Interest Income
 1,499
 1,865
 2,427
 1,878
 1,312 

 Pretax Income
 90,734
 48,082
 39,625
 34,913
 27,193 

 Pretax Margin 35.24% 

 Net Income
 76,033
 40,269
 34,343
 30,736
 12,662 

 Net Margin 29.53% 

 EPS (Basic)
 112.20
 58.61
 49.16
 43.70
 18.00 

 EBITDA
 91,006
 54,744
 47,254
 40,566
 35,966 



 CASH FLOW STATEMENT 

 Operating Activities 
 Fiscal year is January-December. All values USD Millions.
 2021
 2020
 2019
 2018
 2017 5-year trend 

 Net Income before Extraordinaries
 76,033
 40,269
 34,343
 30,736
 12,662

 Depreciation, Depletion & Amortization
 12,441
 13,697
 11,781
 9,035
 6,915 

 Funds from Operations
 93,175
 63,297
 53,701
 43,063
 27,845 

 Net Operating Cash Flow
 91,652
 65,124
 54,520
 47,971
 37,091 

 Capital Expenditures
 (24,640)
 (22,281)
 (23,548)
 (25,139)
 (13,184)

 Repurchase of Common & Preferred Stk.
 (50,274)
 (31,149)
 (18,396)
 (9,075)
 (4,846) 

 Free Cash Flow
 67,012
 42,843
 30,972
 22,832
 23,907 

 Free Cash Flow Yield 3.41% 



 BALANCE SHEET 

 ANNUAL 
Assets Fiscal year is January-December. All values USD Millions.
 2021
 2020
 2019
 2018
 2017 5-year trend 

 Cash & Short Term Investments
 139,649
 136,694
 119,675
 109,140
 101,871 

 ST Debt & Current Portion LT Debt
 2,302
 2,794
 1,199
 -
 - 

 Long-Term Debt
 26,206
 25,078
 14,768
 4,012
 3,969 


 Total Current Assets
 188,143
 174,296
 152,578
 135,676
 124,308 

 Total Current Liabilities 
64,254
 56,834
 45,221
 34,620
 24,183 

 Current Ratio 2.93
 Quick Ratio 2.91
 Cash Ratio 2.17

 Total Assets
 359,268
 319,616
 275,909
 232,792
 197,295 

 Asset Turnover 0.76
 Return On Average Assets 22.40% 

 Total Liabilities
 107,633
 97,072
 74,467
 55,164
 44,793 

 Total Shareholders' Equity
 251,635
 222,544
 201,442
 177,628
 152,502

 Total Shareholders' Equity / Total Assets
 70.04%
 69.63%
 73.01%
 76.30%
 77.30% 




 KEY STOCK DATA 
P/E Ratio (TTM) 19.33(06/13/22) 
EPS (TTM) $110.56 
Market Cap $1.40 T (@ 06/13/22 $2,137.53USD / share) 
Shares Outstanding 313.38 M 
Public Float 273.83 M 
Yield GOOG is not currently paying a regular dividend. 
Latest Dividend N/A 
Ex-Dividend Date N/A 


 Average Growth Rates 
Alphabet Inc. Cl C Past Five Years Ending 12/31/2021 (Fiscal Year) 
Revenue +26.38%
 Income +100.10%
 Earnings Per Share - 
Capital Spending +17.38%
 Gross Margin +62.77%
 Cash Flow +36.06%



Share price

Alphabet Inc Class A
2,130.43 USD-769.63 year to date
14 Jun, 9:41 am GMT-4 


Alphabet Inc Class A
2,131.91 USD-318.71 past year
14 Jun, 9:41 am GMT-4 


Alphabet Inc Class A
2,131.91 USD+1,171.58 past 5 years
14 Jun, 9:41 am GMT-4 


Alphabet Inc Class A
2,131.91 USD+2,076.04 all time
14 Jun, 9:41 am GMT-4 

Peak price  US $2,997 (18.11.20210




Stock Price Target GOOG

High$4,533.34
Median$3,200.00
Low$2,650.00
Average$3,247.34
Current Price$2,137.53



Ratios & Margins Alphabet Inc. Cl C

All values updated annually at fiscal year end

Valuation

P/E Ratio (TTM) 19.44
P/E Ratio (including extraordinary items) 20.99
Price to Sales Ratio 7.62
Price to Book Ratio 7.62
Price to Cash Flow Ratio 21.42
Enterprise Value to EBITDA 15.74
Enterprise Value to Sales 5.31
Total Debt to Enterprise Value -
Total Debt to EBITDA 0.16
EPS (recurring) 101.46
EPS (basic) 113.88
EPS (diluted) 112.20

Efficiency

Revenue/Employee -
Income Per Employee -
Receivables Turnover -
Total Asset Turnover 0.76

Liquidity

Current Ratio 2.93
Quick Ratio 2.91
Cash Ratio 2.17

Profitability

Gross Margin +56.91
Operating Margin +30.51
Pretax Margin +35.24
Net Margin +29.53
Return on Assets 22.40
Return on Equity 32.07
Return on Total Capital 29.62
Return on Invested Capital -

Capital Structure

Total Debt to Total Equity -
Total Debt to Total Capital -
Total Debt to Total Assets 7.94
Interest Coverage -
Long-Term Debt to Equity -
Long-Term Debt to Total Capital -
Long-Term Debt to Assets 0.07

Thursday, 27 January 2022

Here’s how to invest like billionaire Warren Buffett during a volatile market

The wild swings in the stock market may have you stressed about your investments.

Yet if you took a page from self-made billionaire Warren Buffett, you shouldn’t be too concerned about daily market moves.

“You’ve got to be prepared when you buy a stock to have it go down 50% or more and be comfortable with it, as long as you’re comfortable with the holding,” the Berkshire Hathaway CEO said during the company’s 2020 annual shareholders meeting.

The 91-year-old, who is worth $109.2 billion according to Forbes, has been called the greatest investor in the world. 

In fact, of the top 10 billionaires, Buffett is the only one who gained wealth so far this year, according to the Bloomberg Billionaires Index.

When Buffett looks at the stock market he sees companies instead of stocks.

“We ignore 99.9% of what we see, although we run our eyes over them. And then every now and then we see something that looks like it’s attractively priced to us as a business,” Buffett said at Berkshire Hathaway’s 2008 meeting.

If you want to take a page from Warren Buffett, here are some of his key principles you can integrate into your investing practice.


Think long term

When Buffett buys stocks, he’s in it for the long haul.

“If there is one quality that you need in order to invest like Warren Buffett it is patience,” said Berkshire Hathaway shareholder Robert Johnson, professor of finance at Creighton University’s Heider College of Business in Omaha, Nebraska, Buffett’s hometown.

You’ve got to be prepared when you buy a stock to have it go down 50% or more and be comfortable with it, as long as you’re comfortable with the holding.













Warren Buffett

BERKSHIRE HATHAWAY CEO


Buffett has driven home this philosophy over the years.

“When we buy a stock, we would be happy with that stock if they told us the market was going to close for a couple of years. We look to the business,” he has said.

He compared it to buying a farm.

“You would not get a price on it every day and you wouldn’t ask whether the yield was a little above expectations this year or down a little bit. You’d look at what the farm was going to produce over time.”


Invest in what you know

Buffett has famously said to “never invest in a business you cannot understand.”

“You have to learn how to value businesses and know the ones that are within your circle of competence and the ones that are outside,” Buffett told CNBC’s Becky Quick during an interview on “Squawk Box” in 2019.

That doesn’t mean he thinks you have to be an expert on every company.

Investors need to have the “ability to correctly evaluate selected businesses,” he wrote in his 1996 annual shareholders’ letter.


Focus on good companies

Buffett likes to focus on companies that have a good business model that is sustainable over a very long period of time, Johnson said.

It has to be at the right price. Buffett is well known as a value investor, which is someone who chooses equities that seem to be trading for less than their intrinsic value.

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price,” he famously wrote in his annual letter to Berkshire Hathaway shareholders in 1989.


Keep learning

Buffett is a big believer in continuously learning throughout life.

By the time he was 10 years old, he read every book on investing in the Omaha public library and many of them he read twice.

And he hasn’t stopped.

“l was in his office several years ago. His desk is just piled with books and they are books on very many diverse topics,” Johnson said.

Buffett once said he reads about 500 pages a week.

“I remain very big on the idea of reading everything in sight,” Buffett said at the 2007 Berkshire Hathaway meeting.



PUBLISHED TUE, JAN 25 20223:43 PM 

Michelle Fox

https://www.cnbc.com/2022/01/25/heres-how-to-invest-like-billionaire-warren-buffett-during-a-volatile-market.html

Sunday, 28 November 2021

Everything You Need To Know About Money, Inflation. How The System Works

 


Everything You Need To Know About Money, Inflation | How The System Works | Business Documentary While the world comes out of economic recession due to the pandemic, a lot of things are changing. High inflation, stimulus packages, interest rates. All these words are popping up on the news, but it’s hard to figure out how does the whole system work. In this video, we explain all of that and more. Chapters: Hyperinflation Fiat Currency System Explained What if the dollar was still pegged to gold Why we might have high inflation soon Zombie companies

Inflation and Value of Bitcoin


Peter Schiff on Biden's Dysfunctional Economy, Inflation Concerns, and the Value of Bitcoin

Wednesday, 8 September 2021

To select stocks yourself intelligently, please learn and understand accounting, the language of business.

 "You have to understand accounting and you have to understand the nuances of accounting.  It's the language of business and it's an imperfect language, but unless you are willing to put in the effort to learn accounting - how to read and interpret financial statements - you really shouldn't select stocks yourself."

Warren Buffett

Recognise the phenomenal long-term wealth-creating power of a company that possesses a durable competitive advantage over its competitors.

History of investment analysis


Benjamin Graham

Benjamin Graham had adopted early bond analysis techniques to common stocks analysis.

He focused primarily on determining a company's solvency and earning power for the purposes of bond analysis.  

Graham never made the distinction between a company that held a long-term competitive advantage over its competitors and one that didn't.

He was only interested in whether or not the company had sufficient earning power to get it out of the economic trouble that sent its stock price spiraling downward.  

He wasn't interested in owning a position in a company for ten or twenty years.  If it didn't move after two years, he was out of it.


Warren Buffett

Warren Buffett discovered, after starting his career with Graham,  the tremendous wealth-creating economics of a company that possessed a long-term competitive advantage over its competitors.

He realized that the longer you held one of these fantastic businesses, the richer it made you.

While Graham would have argued that these super businesses were overpriced, Warren realized that he didn't have to wait for the stock market to serve up a bargain price, that even if he paid a fair price, he could still get superrich off of those businesses.

Warren developed a unique set of analytical tools to help identify these special kinds of businesses.  

His new ways of looking at things enabled him to determine whether the company could survive its current problems (recall Washington Post at the time when he first bought into this company).

Warren's way also told him whether or not the company in question possessed a long-term competitive advantage that would make him superrich over the long run.  

Warren's two simple and stunning revelations:  

(1) How to identify an exceptional company with a durable competitive advantage?

(2) How to value a company with a durable competitive advantage?



Tuesday, 31 August 2021

KLCI MARKET PE 28.8.2021

KLCI MARKET PE  28.8.2021

Company Mkt Cap (m)    Earnings (m)     Dividend (m)
MBB 97,873.2       6,749.9       6,068.1 
PBB 81,136.7       4,858.5       2,515.2 
PCHEM 65,600.0       1,600.0 984.0 
TENAGA  59,436.8       3,602.2       4,576.6 
IHH          55,747.1 199.3 334.5 
CIMB 48,969.4       1,206.1 489.7 
PMETAL  43,369.3 457.0 173.5 
HLBANK  41,186.6       2,640.2 782.5 
AXIATA 37,057.7       3,669.1 630.0 
MAXIS 36,783.5       1,382.8       1,324.2 
DIGI 33,821.3       1,221.0       1,217.6 
PETGAS 32,174.2       2,010.9       2,509.6 
TOPGLOV  32,088.8       1,910.0 962.7 
NESTLE 31,587.2 553.2 537.0 
MISC 31,246.6 -          1,468.6 
SIMEPLT  28,838.5       1,191.7 807.5 
PPB 26,403.4       1,320.2 660.1 
IOICORP  25,643.6       1,401.3 666.7 
HARTA 24,850.1       2,889.5       1,068.6 
KLK 23,025.7 777.9 529.6 
TM          22,868.6       1,016.4 548.8 
MRDIY 22,658.5 -    -   
RHBBANK  22,416.7       2,056.6 717.3 
HAPSENG  20,988.0 749.6 629.6 
HLFG 20,770.0       1,871.2 436.2 
PETDAG  19,670.4 276.7 373.7 
GENTING  19,113.1 -             573.4 
GENM 17,337.4 -             866.9 
SIME 15,986.0       1,427.3       1,023.1 
DIALOG 15,187.0  544.3 182.2 
TOTAL        1,053,835.4     47,582.8     33,657.6 


Company PE DY Price (RM)
MBB 14.5 6.2 8.37
PBB 16.7 3.1 4.18
PCHEM 41.0 1.5 8.20
TENAGA 16.5 7.7       10.38
IHH       279.7 0.6 6.35
CIMB 40.6 1.0 4.89
PMETAL 94.9 0.4 5.37
HLBANK 15.6 1.9       19.00
AXIATA 10.1 1.7 4.04
MAXIS 26.6 3.6 4.70
DIGI 27.7 3.6 4.35
PETGAS 16.0 7.8       16.26
TOPGLOV 16.8 3.0 3.91
NESTLE 57.1 1.7     134.70
MISC 0.0 4.7 7.00
SIMEPLT 24.2 2.8 4.17
PPB 20.0 2.5       18.57
IOICORP 18.3 2.6 4.08
HARTA   8.6 4.3 7.25
KLK 29.6 2.3       21.30
TM         22.5 2.4 6.06
MRDIY   0.0 0.0 3.61
RHBBANK 10.9 3.2 5.51
HAPSENG 28.0 3.0 8.43
HLFG 11.1 2.1       18.10
PETDAG 71.1 1.9       19.80
GENTING   0.0 3.0 4.93
GENM   0.0 5.0 2.92
SIME 11.2 6.4 2.35
DIALOG 27.9 1.2 2.69
MARKET 22.1 3.2




PE and DY are based on the latest financial year accounts
28.8.2021
KLCI 1601.38
Market PE 22.1
Market DY 3.2