Peter Lynch's strategy for buying mutual funds

1. invest 100% in stocks
2. diversify among capital appreciation, value, quaity growth, emerging growth/small cap, special situation funds
3. put new money into sectors that have lagged the market
4. stik with consistent performance
5. buy closed end funds at price less than NAV
6. country funds - buy when unpopular

Momentum Investing

Buy stocks which fulfill these criteria:

1. Stock is from sector/industry in rotation
2. Strong earnings growth and analyst rating
- earnings growth > 15% over the last 3-5 years
- earnings growth forecast > SP500 & industry growth over the next 3-5 years
-history of earnings surprise
3. positive insider and institutional ownership
4. strong sales growth and high ROE
5. bullish market sentiment
6. stock is near or at buy point (breakout)
7. positive technical indicators


(from Adam Khoo's book)

market view

Market views form Money Morning:

- shale gas to enable US to become energy self sufficient, perhaps also for UK

- Andy Xie doesn't believe in the China rebound

- Italy is a better buy than britain

- Iskandar Johor is like Shenzhen in 1979

- Japan is reaching a tipping point

ICAP dual-listed global fund

So ICAP is planning one, a world's first for closed-end fund.

The other country to be listed is yet to be known.
My wild guess: ermmm... ok, how about Singapore?
This is truly a wild guess. My only rationale is it's much more difficult to do it anywhere else than our good old nearby neighbour.

BTW, TTB sees light at the end of the European tunnel in maybe half-year's time. Ferrari, anyone?

I hope TTB flies in more of his lovely overseas staff in next AGM. At least to make up for just giving us a mug!!!

ICAP AGM 2012

Latest news is that the controversial trio  did not get voted in by a large majority (87%). I did not stay back for the results because we had to wait like 2 hours for it. The registrars could have done better.

While my support is with Tan Teng Boo, here is one thing I would like to point out: He is always saying he keeps cash to wait for that moment he can get a bargain. But, in 2009, during the depths of the global financial crisis, what did he do with the pile of cash? Based on the annual reports, not much. Wasn't there cheap enough bargains then?

I have bought into ICAP around $2.60 back when it was trading at a premium, and another batch around $1.95 a couple of years ago. So I sold one batch at $2.50 to hedge myself. If price drop I can buy back cheap, if price increase to NAV I will realise the profit for the other batch.

I had remind myself
1. Do not fall in love with your stocks (I believe this is from Warren Buffett too? Or Ben Graham?)
2.  Bulls and Bears make money, Pigs get slayed.

investment idea

investment ideas from Moneymorninig:
-short AUD (China slowdown)
-Mexico  (China slowdown)

rubber outlook

Rubber is poised to drop as sustained supplies from Southeast Asia and falling demand from China’s tiremakers push stockpiles to match their record at Qingdao port, the main shipment hub, an industry executive said.
Global natural-rubber supply will exceed demand for a third year in 2013, according to RCMA Commodities Asia Group in Singapore. Production will top usage by 299,000 tons, from a surplus of 321,000 tons this year and 4,000 tons in 2011, according to Chief Executive Officer Chris Pardey, a former commodities trader at Cargill Inc. and Noble Group Ltd.

[Source:Bloomberg news]