Intrinsic Value Calculator

Find out the Intrinsic Value of A Company

Information Required

1. Earnings Per Share
2. Estimated Growth Rate
3. Discount Factor (Use Treasury Bond Yield)

Singtel Annual Report 2013 Review

Good Insights on Singtel 2013 Annual Report

Know what your are Investing In

Always know the company you are Investing in

Not knowing what a company does before investing in it is very similar to going camping without packing extra underwear. You don't want to get caught with your pants down. "Circle of Competence" is the buzzword being thrown around.

Investing within your circle of competence is to understand what a company does before deciding to own a share of it. If you cant illustrate what a company does with a simple drawing or explain what it does to me before I finish my number twos, you probably don't understand it very well.

Without a thorough understanding of a company, you will not be able to understand

• How does it actually make money
• Is the business model sustainable in 5 to 10 years
• What are its strengths and weaknesses compared to the competition
• How capable is the management
• The current financial health of the company
• Know what returns to expect and when to sell the share

 If you are not willing to pay $5000 on a handbag that isn't made by prada/gucci/LV, don't throw away your money by investing in something that you do not understand based on hear say.

Some tips to improve your circle of competence

1. Spend some time reading other blogs and news
2. Start with something that interest you or a product that you use often
3. When researching a share, make some notes that you can refer back to
4. Practice explaining it to your friends/family

My Current Stock Portfolio July 2013

My July 2013 Stocks Portfolio