Value Investing in Growth Companies

One of my readers recently wrote to me requesting my views on a few Reits in Singapore. I have not replied him but followers of my blog would know that I don’t believe in Reits and have never invested in any Reits before. This is because the business model is too complicated for me to understand. In this article, I will share my thoughts on value investing.

One of the most important things that investors have to realize is that a good stock must have a simple business that are easy to understand. For example, we know that Super Group sell instant coffee and SingTel provides telecommunication services. Many investors, especially the novice ones, rush to invest in Reits simply because they thought that Reits provide dividends, so Reits must be a form of good dividend. They fail to understand the real business model and if you prodded them further what is Reits all about, they would be clueless. It is like putting the cart before the horse and missing the forest for the woods. To this end, I will like to recommend a good investment book for my readers.

A Unique Guide to Wealth and Financial Independence Using Value Investing Strategies

Many people spend their life working for active income. They are either ignorant or skeptical about stock investments. Even those who have invested their money, more often, entered into less effective methodology of making money in the stock market. They go for quick money gains and end up losing their net worth by speculating in the market. However, according to authors Victor Chng and Rusmin Ang, the odds can have a better likelihood if one knows what sustainable methodology to use.

In their newly revised book, Value Investing in Growth Companies: How to Spot High Growth Businesses and Generate 40% to 400% Investment Returns (Wiley; April 2013), Chng and Ang explore a unique way of analyzing companies using value investing strategies. This unique and simple methodology, called the “Jigsaw Puzzle model,” is broken down into four segments, namely Business, Management, Numbers and Valuation. The authors introduce this concept for building an accurate picture of a company before deciding whether or not to invest. It also forms the basis for investors and traders who want to generate multiple returns in the area of small and fast growing companies to achieve the wealth and financial independence they want and deserve.

The strategies discussed in this book are designed to create a relatively stress-free method of creating a secondary source of income. It uses sensible and conservative investment strategies, not get-rich quick strategies, which even allow traders and investors to spare some time for their family and friends.

Although the book is written for people with some investing knowledge, it uses jargon-free language that new investors and traders will be able to understand and produce a long-term sustainable result. It also offers them with ten common investing mistakes they can learn while adding value to their investment strategies.

While many companies and case studies discussed in the book are catered for the Asian investors, those outside Asia can still benefit from getting to know which the growth companies in Singapore and Asia are.

Through the course of this book, the authors shed some light on some of the complicated issues in investing. This enable readers to act quickly upon an investment opportunity when it arises, while having the ability to make better investment decisions.

Value Investing in Growth Companies is now available at all major bookstores nationwide. For more information, please visit the publisher’s website at

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