Tag: value investing

Focus on Total Returns, Not Income Investing

The desperate search for yield has led to a number of people choosing to invest in income funds, or in mature companies providing a high dividend yield. On the surface, it might sound sensible, but it is erroneous. It may lead to investors underestimating the risk of investing in high yield instruments. Moreover, what is less obvious is the opportunity cost of focusing on yield ...

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Facebook’s Q1’20 Earnings Update

Increased engagement due to shelter-in-place measures but some of this increased engagement will be lost once measures are relaxed in the future. Engagement increased by ~10% YOY across all measurements, compared to ~7% in the previous period. Demonstrating that Facebook's attractiveness as a platform for users to connect with their friends and family.

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Has the Market Bottomed Out?

It is important to understand that the intrinsic value of a business is the present value of all the cash generated over its lifetime. And most would agree that COVID-19 would be a temporary event. It would be silly to sell your stocks or to hold on to your investable cash because this year's earnings would show a drastic decline due to COVID-19 induced shutdown.

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