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Wednesday, February 27, 2013

Some points on Adversity Quotient (AQ)

Adversity - is defined by google as "difficulties" or "misfortune" w/c is synonymous to having experience disaster - distress - calamity and hardship.

Pretty heavy words right? In business or life in general, these are not just mere words but real challenges that one has to manage everyday. Whether you're a start-up company, a diversified conglomerate or just an individual investor managing his exposures in different types of risks from various asset classes from different markets. One should always have the ability to survive in the event that things go wrong the next day or few years down the road.

Friday, February 8, 2013

The Filipino Investor Quantitative Model Portfolio

I have conducted a Multi-factor analysis on stocks listed in the Philippine Stock Exchange last Jan 23, 2013.
From the top 25 stocks that passed that analysis, I made a dummy or a "model" portfolio if you may to track it's performance. 

The model portfolio is dominated in PHP and assumes a PHP 10,000 exposure for every stock on purchase date. The purchase date is on Jan 24, 2013 w/c is one day after the analysis was done. The purchasing price is the closing price of the Jan 24, 2013. There are 25 stocks in this model portfolio hence the initial capital  is PHP 250,000. Brokerage cost and taxes are not accounted for this model.

Let's find out if this "Multi-factor" strategy can outperform the Philippine index (PCOMP:IND) in terms of return.

This is a buy and hold strategy w/c re-balances annually. I'm not sure yet how i'm going to account for the dividends or if this Bloomberg watch list can account that for me (though I think it cant). Anyways, I'll just figure that out later.

For tracking purposes let's name this model portfolio as "The Filipino Investor Quantitative Fund" or in short, "TFI Quant Fund".

TFI Quant Fund:

Capital: PHP 250,000
Analysis date: Jan 23, 2013
Purchase date: Jan 24, 2013
Number of stocks: 25
Exposure per stock: PHP 10,000
Benchmark: PCOMP:IND
TFI Quant Fund return since Jan 24: +8.04%
PCOMP return since Jan 24: +5.58%

TFI Quant Fund

This is not an investment advice and the Author does not have any position on the stocks mentioned above as of the publishing date of this article - Feb 08, 2013. The author shall not be responsible or liable for any trading or investment decisions made based on this information.
The author hereby expressly disclaims any responsibility for any error or inaccuracy in the information.

Thursday, February 7, 2013

The Wisdom of Benjamin Graham

I stumbled upon this great video of Benjamin Graham's "legacy" in Youtube and I thought the followers of The Filipino Investor should really know about it, hence I'm sharing it on this blog.

To those who do not know who Benjamin Graham is. He is actually one of the "look-up-to-guys" when it comes to Value Investing. If you ask me, I think it is even safe to say that he is the father of value investing. Ben Graham is a business professor at Columbia University where he taught Warren Buffet and the other business tycoons (shown in the video below) on how to view stocks in a business and value investor's perspective. He is also an author of various books such as "The Intelligent Investor" and "Security Analysis" to name a few.

My top 2 favorite lines are the segment below.