Posts by Andrew Stotz
Investor Paid the High Cost of Inertia
My Worst Investment Ever: If something is great, and you use it and love it, and everyone loves it, maybe you should invest in it. I started using Amazon.com early on, say around 1998.
Read MoreVMC: Increase Your Impact with the Valuation Master Class
When I started my career, I boldly told my boss that I wanted to be voted the number one analyst in Thailand. 14 years after I set that goal, I was finally voted the number one analyst in Thailand!
Read MoreVMC: Increase Your Productivity in Valuation
What a crash! From the number one position at the number one foreign broker to unemployed, all due to a lack of efficiency. I eventually joined another firm at my prior position as a bank analyst. It was the best move I ever made.
Read MoreVMC: Gain Confidence in Forecasting and Valuation
I said, “you are right, I will fix that tonight, but that mistake does not change my buy argument for that stock and the sector overall.” My confidence allowed me to stop his argument and get back to my message.
Read MoreVMC: Learn Practical Skills in Valuation
Most people read textbooks or attend university lectures to understand valuation theory, but the reality is that actual valuation work is very, very different from theory. Many people think “well I’ll just learn valuation on the job.” WRONG.
Read MoreHow a ‘Good Company’ Can Still Mean a Bad Investment
My Worst Investment Ever: During my very early days as an equity investor, I invested in a high-quality coal miner that was the market’s darling at the time. It had survived the 2008 financial crisis unscathed and delivered stellar returns in a falling market.
Read MoreMedical House-Call Project Investment Had Everything but the Basics
My Worst Investment Ever: Two years ago, I invested a large sum of money into a private equity deal to take over a family-run home doctor service. The deal was with a group of respected players, and the new money was designed to expand the business model across the country.
Read MoreGlobal EPS grew faster than Sales in PTM
Chart of the Day: EPS growth has increased a bit in Developed markets, while it has fallen a bit in Emerging markets. Strong EPS driven by strong revenue growth and falling US taxes.
Read MoreVMC: Mistake #9: Not Properly Fading the Return on Invested Capital
The final mistake, #9, takes us into when analysts don’t properly fade the return on invested capital. Most analysts forecast that high-return companies will maintain high-level profits and low-return companies will retain their low-level ones.
Read MoreVMC: On the Rise of CFA Candidates in Asia
The CFA program has long been viewed as an essential qualification for anyone hoping to enter the lucrative world of investment banking. First conceived in 1942, the CFA program is now one of the US’s most successful exports. And in Asia, the credential is becoming ever more highly prized.
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