My investment approach is primarily that of a "contrarian value investor," finding temporarily undervalued value and growth stocks, especially among small-cap and even micro-cap companies, and within the "socially responsible investor" context (no junk food, animal cruelty, heavily polluting, alcoholic beverages, gambling, tobacco, or weaponry-oriented companies).
As every savvy investor knows, markets in the short-term are often not at all efficient at pricing equities—except in the lamest sense that a stock’s price is what buyers and sellers agree upon at a particular moment of the day. Exploiting inefficiencies in stock-valuations is one secret to making big gains over time when a company’s shares re-set to a higher price to more accurately reflect significant changes in fundamentals, financials, and/or economic trends.
I'm a psychologist, author, spiritual counselor, with strong progressive values, living with my wife in Santa Barbara, CA, USA. See my websites: www.rare-leadership.org and a really huge, multi-faceted website, www.enlightened-spirituality.org
After having read books written by Charles Brandes, Benjamin Graham, Joel Greenblatt, George Soros, Jim Jogers, Pabrai Mohnish, Phil Fisher, Lauren Templeton, Martin Whitman, Mary Buffett, Peter Lynch, and Anthony Bolton I found for myself the investment strategy of Warren Buffett most understandable, enlightening, and easy to emulate. Warren Buffett is my idol. I learnt from Warren Buffett when and what to buy and I learnt from John Templeton when to sell. I was not able to learn from Warren Buffett when to sell because he almost never sells.
Now I invest only in companies that fulfill the following investment criterion:
It has a market dominant position in its field.
Its return on equity is above 20 % since its inception.
Its earnings per share growth is above 20% since its inception.
Management holds more than 15 % of the company.
Its research and development cost is almost zero.
It has a simple business model that can be understandably explained with a few sentences.
It almost has no debt.
Its product or service resists economic meltdown, natural disaster, poison, or disease.
The selling price of its product or service has to keep up with inflation rate.
It buys back its shares but does not distribute dividends so as to avoid tax imposed on dividends.
Its price earnings ratio is under 5 at the time of my buying.
I also profit enormously from my Chinese background because it gives me a great understanding to decipher whether a high growth Chinese company listed in Europe or US is a fraud or a real one, especially at a time when most non-Chinese investors pointing out that it must be a fraud. Having lived in different cultures such as China for 16 years, Australia for one year, Denmark for 6 months and Germany for 18 years, I am fluent in Chinese (mother tongue), English, and German. These language skills and my experience in people intepreting a given situation differently due to their different cultural background give me an huge advantage to make a profitable investment decision. I do not trade because the trading only invites the tax authority and brockerage agents to the feast and reduces my profit substantially.
I am a humanistically educated oil & gas professional and part-time day trader (still full-time working at 74), with limited technical knowledge regarding company balance sheets and reports but many years of experience investing in the Tokio and New York stock exchanges, with modest success. Presently I work in China and am long on CCME.
Knowing that all technical analysts know their profession but they themselves are split into pro and con on any given stock, I 'sympathize' with (not trust or follow) those whose educated guess resembles mine.