Skip to content
Learning that drives better investment decisions

Shenzhen Stock Exchange Has 61% of Listings but 39% of Market Cap

By Andrew Stotz | Jul 19, 2017
Shenzhen Stock Exchange has 61% of listings in #China but 39% of market cap

Chart of the Day: In terms of number of listings Shenzhen accounts for 61% and Shanghai 39%. In terms of market capitalization it’s the opposite Shanghai 61% and Shenzhen 39%.

Read More

Zero to 3,000 Listed Companies in China in 24 Years

By Andrew Stotz | Jul 18, 2017
Zero to 3,000 Listed Companies in #China in 24 Years

Chart of the Day: From its humble beginnings in 1993 the Chinese market now has more than 3,000 listed companies. Meanwhile, the rest of the world has seen a fall in the number of listed companies.

Read More

Emerging Markets Still Look Relatively Cheap

By Become a Better Investor | Jul 17, 2017

Global Equity FVMR Snapshot: Emerging markets still look relatively cheap on PE and PB. Global markets have an ROE of 12.8%, driven by the US. Excluding US, the ROE is only at 10.6%.

Read More

Out-Of-Sample Testing: Not the Be All and End All

By Become a Better Investor | Jul 14, 2017
Top 5 of the Week of July 10 - Become a #betterinvestor

In our Top 5 this week, we look at the basics of asset allocation, discover why financial knowledge is useless, and examine out-of-sample testing. All this and more…

Read More

Korea Performed Best in Asia in 1H17

By Andrew Stotz | Jul 13, 2017

Chart of the Day: Besides China A, the lowest USD returns have been in ASEAN markets. Taiwan and India beat HK due to currency impact. Return in Thailand was the poorest in local currency, USD return was more than double.

Read More

Business DNA: Taking Seaweed to the Masses

By Andrew Stotz | Jul 12, 2017

After winning several high-stakes online gaming tournaments as a teenager, Mr. Peeradechapan reinvested his winnings in a roasted chestnut business. Later, he founded his deep-fried seaweed snack company that became an immediate success throughout Asia. He is already a business icon in Thailand, replete with a movie thinly based on his life.

Read More

The Amount of Debt in the Long-Term Capital Structure

By Andrew Stotz | Jul 11, 2017

If the value of equity of a company is trading at a low 0.5x price-to-book value then the debt will appear as a large portion of capital. If the value of equity is trading at an expensive 4.0x then debt appears tiny. But debt never changed.

Read More

Forecasting Revenue Growth When Valuing a Company

By Andrew Stotz | Jul 10, 2017

How does an analyst forecast sales growth? What if a company is in a cyclical industry? What if the company has very volatile sales growth? Is it wrong to forecast a steady growth rate for each of the future years?

Read More

Speculate on High-Risk Assets without Going Nuts

By Become a Better Investor | Jul 7, 2017
Top 5 of the Week of July 3 - Become a #betterinvestor

In our Top 5 this week, we check out complacency in today’s bull market, search for the Holy Grail of active mutual fund investing, and discover the lure of pessimism. All this and more…

Read More

Lessons Learned from the 1997 Asian Financial Crisis

By Andrew Stotz | Jul 6, 2017

It’s now 20 years ago the Asian Financial Crisis hit. Thailand was the epicenter of the 1997 Asian Financial Crisis. I had moved to Thailand in 1992, become a bank analyst in 1993 so I lived through the boom of that time.

Read More