Value Investment vs Technical Investment

I just read finish a 2 books the past few weeks. This particular book that i borrowed from my friend caught my interest. Secrets of Self-Made Millionaires by Adam Khoo. This book have been around in Popular, and other famous book stores for many many months, and seriously, it didnt really caught my interest. 2 reasons: Its very expensive and cliche title (opps =x)

However after reading this book, a different impression was given to me from this book. This book give people who don't have any financial background a good starting point. It teaches you money making stuffs like internet business, financial management (personal), accounting techniques and (the thing that caught my attention) how to pick stocks like warren buffet by using his techniques.

As i am a stock person, i am very interested in what he wrote in his book as i also read many books about warren buffet. Chapter 19 of this book is a good read for people who want to know more about value investment and how to go about using Adam's technique to select stocks. So what i think is, since i aready written this chapter, whenever anyone drop by a bookstore, just read this chapter and ignore the rest. If u find this book good, buy it. Now got 20% discount!!

I going to write down the 8 criteria (courtesy of Adam Khoo's Chapter 19):
1)History of consistently increasing sales and earnings
2)Sustainable competitive advantage
3)Future Growth Drivers
4)Conservative Debt
5)ROE > 15%
6)Low capital expenditure required to maintain current operations (in account sector: CAPEX)
7)Good Management & Competent at capital allocation
8)Buy only when the stock is undervalued, i.e. Share price < Intrinsic Value

The last criteria is the hardest to determine, however in his book, he taught his reader how to determine it. I won't say it here, if u want to know more, read it or buy it. He even provide a template for calculating the stock's intrinsic value.

Another thing to take note is that: I AM GETTING MY TRADING ACCOUNT DONE! Brokerage firm is UOBKayHian (Courtesy of Ms Evin Teo). Anyone want to recommend more lobang brokers, feel free to email me. Meanwhile, i am waiting the current correction to go to its deepest, then i will go in!

From previous post, i written about my TAs and Companies that i am interested. Well stay tuned for future post when i try to blend in FA with TA. And see how the companies on my watchlist actually worth watching!!