Ser Jing Chong

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  • How I Made 60% and Lost 50% in Fundamentally Sound Companies

    By Ser Jing Chong - January 14, 2013 | Tickers: DLB, PNRA | Editor's Choice

    Mary Buffett’s Buffettology series of books have been a wonderful gift for students of Warren Buffett’s school of investing and in them, an often repeated theme would be a consistent trend of growing earnings as an important criteria in seeking winning investments. In the Motley Fool community, I have been exposed to many different investing styles from various posts by different members, but I have always had an more »

  • Great Culture and Great Returns Can Come Hand in Hand

    By Ser Jing Chong - December 28, 2012 | Tickers: AMZN, COST, GOOG, WFM

    Imagine a company that has no dress codes, no vacation policy, freedom for employees to set their own wages and a participative culture where every rank-and-file employee is given a vote in important company matters. To most business school graduates, this would seem like complete anarchy and they would believe such a company would be doomed to fail. However, to SEMCO such a ground-breaking view of corporate culture is embraced more »

  • Finding Future Dividend Aristocrats

    By Ser Jing Chong - December 18, 2012 | Tickers: COH, KO, LOW, NKE, PPG

    The S&P500’s Dividend Aristocrat Index is made up of companies within the S&P500 index that have increased their dividends consecutively over 25 years. Dividends are a great source of income and return for investors and Warren Buffett elucidates the idea brilliantly in his 2010 Annual Letter to Berkshire Hathaway Shareholders:  

    Coca-Cola paid us $88 million in 1995, the year after we finished purchasing the stock. Every year more »

  • You Are Wrong Mr Salmon: Fundamentals-based Investing Works

    By Ser Jing Chong - December 12, 2012 | Tickers: AAPL, COH, ISRG | Editor's Choice

    On 4 Dec 2012, a finance blogger at Reuters named Felix Salmon posted an article titled ‘The seductive Warren Buffett. A key takeaway of his article that I got was that Salmon did not believe that a fundamentals-based, buy-and-hold investing philosophy can enable professional and amateur investors to beat the market because “all strategies eventually run out of steam.” My response to his article would be an emphatic: “You are more »

  • These Restaurant Stocks are Great for a Nibble

    By Ser Jing Chong - November 20, 2012 | Tickers: CMG, MCD, PNRA

    Google the latest financial news and I would not be surprised if you encounter articles discussing the impending stock market collapse due to the upcoming Fiscal Cliff, a slow-down in China’s growth story, or the nerve-wracking economic malaise in Europe. Such news would understandably make any investor nervous. However, amidst that back-drop it is easy to forget that there are still great businesses whose goods and services are in more »

  • Why a Wish List is Important

    By Ser Jing Chong - October 12, 2012 | Tickers: ISRG, JPM, SBUX

    At its most basic, investing is all about buying an asset at a price that is lower than its intrinsic value. Given the current economic climate, with uncertainties over the European Union, China’s slow-down in growth and the looming US Fiscal cliff amongst others, would you be a happy buyer of stocks if prices start collapsing due to general economic malaise? I guess your answer would be a resounding more »

  • How to Check for Smart Stock Buybacks

    By Ser Jing Chong - October 4, 2012 | Tickers: ATVI, COH, LOGI, NFLX, PNRA | Editor's Choice

    Stock buybacks are often touted by management as a way to return value to stockholders. The basic idea is that the buybacks will enhance stock-specific value for stockholders such as Earnings Per Share. By owning a larger piece of the existing company, stockholders are entitled to a larger slice of the company’s profits.

    However, stock buybacks can destroy value for stockholders if management does not engage in them with more »

  • These Companies Adapted Their Way to Success

    By Ser Jing Chong - September 27, 2012 | Tickers: AMZN, AAPL, NFLX, SBUX

    Quality of management’s a very important factor in determining the success of an investment, along with the quality of the business and its valuation. Usually, when discussing good management, words like ‘integrity’, ‘capital allocation’ and ‘visionary’ are thrown into the mix. While it is true that managements who are honest and upright, able to invest capital appropriately and who can prepare their business for changes in consumer and economic more »

  • What Does Amazon’s New Tablet Mean for Dolby and Activision Blizzard?

    By Ser Jing Chong - September 11, 2012 | Tickers: ATVI, AMZN, DLB

    On Thursday, Amazon (NASDAQ: AMZN) announced its newest lineup of tablets to challenge Apple’s iPad – the Kindle Fire HD tablets. The Kindle Fire HD range of tablets are priced from $199 to $499 depending on the specs. There will certainly be concerns over the iPad’s ability to continue dominating the tablet market with the release of the Kindle Fire HD. It is still too early to make any more »

  • Invest in What You Know

    By Ser Jing Chong - September 10, 2012 | Tickers: BWLD, CMG, GOOG, MCD, PNRA

    ‘Invest in What You Know’ is one of the great ideas that the legendary fund manager Peter Lynch has given to the individual investor. There is a common behavioral bias for people to invest predominantly in stocks listed in their home countries because they feel more familiar with it. By taking note of products and services you use every day, you can increase your chances of finding good investment ideas more »

  • Protecting Your Investments From You

    By Ser Jing Chong - September 10, 2012 | Tickers: AAPL, BWLD, ZNGA

    In the aftermath of financial bubbles, individuals who got burnt badly often want to find villains to flog in public. After the Dotcom bubble burst, analysts like Henry Blodget bore the brunt of the public backlash. As the dust settled after the housing market collapsed during the 08/09 financial crisis, it was the banks like Goldman Sachs and Lehman Brothers who were persecuted by public opinion. However, I find more »

  • Earnings at What Price?

    By Ser Jing Chong - September 5, 2012 | Tickers: AMZN, AAPL, GOOG

    Amazon (NASDAQ: AMZN) has been an amazing company since its inception in 1994. It started out as an online bookstore but has since transformed itself into an e-commerce juggernaut that has businesses in areas as diverse as online retail, e-books, cloud-computing services, online video streaming and electronic consumer products. Jeff Bezos, CEO and founder of Amazon, has often been lauded as one of the best visionaries in the corporate world more »

  • Simple But Powerful Idea to Find Winners

    By Ser Jing Chong - September 3, 2012 | Tickers: ATW, DLB

    As an individual investor learning about investing by reading articles and books written by professional investors, there can sometimes be startlingly simple but yet effective ideas that can be put to use by individual investors. John Neff was widely considered to be a contrarian, value and low Price-Earnings (PE) investor whereas Shelby Davis and Peter Lynch are both considered to be Growth at Reasonable Prices or GARP investors. These professionals more »

  • Learning from Legends

    By Ser Jing Chong - September 2, 2012 | Tickers: BRK-A, NFLX, SBUX | Editor's Choice

    Shelby Cullom Davis was a rather unknown investing figure until a book titled The Davis Dynasty, written by John Rothchild, was published in August 2001 and made him a little more publicly known. Davis turned $50,000 in 1947 into nearly $900 million by the time he passed away in 1994. That is a compounded annual return of 23% for 47 years – a record that can make anybody an investing more »

  • You Should Start Playing Activision Blizzard

    By Ser Jing Chong - August 25, 2012 | Tickers: ATVI, AAPL, EA, GOOG, ZNGA

    Activision Blizzard (NASDAQ: ATVI) has been an interesting company for investors who have held on to the stock since August of 2009. The stock went from $11.80 per share on Aug. 1, 2009, to $11.80 per share on Aug. 22, 2012… Hey wait a minute, the stock went nowhere!

    Looking at just the stock price alone, you might think the company has flat-lined and that investors are looking more »

  • Market Timing?

    By Ser Jing Chong - August 1, 2012 | Tickers: AAPL, CMG

    In investing, one of the most heard of maxims with long term buy-and-hold (LTBH) investing is that market timing does not work. Investing legends like Peter Lynch, John Neff and Warren Buffett have repeatedly stated in various interviews, books and articles that they do not pick out stock market peaks and bottoms but rather, study the merits of individual companies and buy and sell based on their strengths and weaknesses more »