Value Investing is not for everyone. However, it is a learnable skill. Here are the things you need to become a great value investor.
What Skills Do I Need?
Before you even start the learning process, you would need to master these 4 areas:
Investment can take a long time to realize its return. Investors need to be patience enough to wait out the return rather than constantly looking for the next big idea. It took Tencent Holdings 13 years to return more than 31,500% to its shareholders but the share price can drop more than 10% in any given year.
Control your emotions
You have to learn to keep your emotion out of the equation when investing. Market can stay irrational for a long time and it is important we focus on the fundamentals of our investment rather than the sentiment of the market.
Stanley Lim has spent the last decade in the investment industry. Over the course of his career, he has kick-started a few businesses, worked in the family office industry and most recently in the investment advisory industry. He has been a writer and analyst for The Motley Fool Singapore from 2013 to 2017. He has written close to 2000 articles online, on investment education and market analysis. He is the co-writer of the investment book: “Value Investing In Asia”, published in 2018. Stanley is currently the chief editor of Value Invest Asia.