Cabeza Howe holds two M.S. degrees in engineering. He has extensive career background in science, engineering and software development. He is a self-made financial analyst and manages his own investment as a business. Focused value investing is his passion. He coined the term "two-in-one" stocks to describe stocks with both growth and value characteristics. He believes in achieving exceptional long-term return through investing in those stocks.
Through lessons learned and experience gained over the years, Cabeza believes the "two-in-one" stocks should be found mainly in large and mid caps. He views small caps as unproven and prone to perpetual decline even following days of glory. So he mostly believes trading instead of investing in small caps, with only rare exceptions.
He was born and grown up in China and used to trade and write about Chinese small caps. He now thinks Chinese small caps are in particular an area to avoid due to the well known accounting issues. The way Chinese regulators handled these accounting issues along with reported wealth of high ranking officials also convinced him that China is to an alarming degree ruled by kleptocracy. From first hand knowledge, however, Cabeza is still a big believer in Chinese consumers. He thinks the best way to benefit from it is through investing in multinationals like YUM, MCD, NKE, DIS and AAPL.
I consider myself a value investor, this investment philosophy boils down to investing undervalued, under-researched and unpopular companies; reasons for one of these three elements can be different: special situations (spin-off, turnarounds, arbitrage), analyst coverage (low or very negative coverage), investor fatigue (because of earnings misses), misunderstood parts of the business (e.g. in case of holdings), and cyclicals.
You can follow me on twitter @12valuestocks or subscribe to my mailing list at www.12valuestocks.com
I believe value and growth should not be considered as two different approaches since value investor also need earnings powers, pricing power and earnings growth.
Every investment should start with the inherent risks and not with the return. A sufficient margin of safety should be provided with every investment you make. This way, investors might lag the market or the hot money stocks in the short term. In the long run however, they will win.