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Investing with Intelligence.



October 06, 2009 – Comments (4) | RELATED TICKERS: SHG , DDC , TECK

I'm on my 3rd read of the intelligent investor this year and I've just finished security analysis, both from Benjamin Graham if you didn't know, and I have tried to apply all the principles from the books although the year. Looking back on some of the investments that I have made I'm pretty happy with the results they have given me since 2009 was the first year I started investing ( I guess I got lucky coming back from Iraq just in time for Christmas 2008 and not knowing what to do with all the money i had saved up over the last 2 years).  

 Basically started 2009 with 24 000$ and now with money I've added all through the year, every 2 months or so buying stocks and such, I am now at 75 000$ which is much more then I anticipated to have today just before I finish my short (4 year) career in the Army and going back to university.

 I'm not sure if its courage or pure luck but when the time was rough I followed what the book was saying, I wasn't paying attention to the media and the stock market analysis who were panicking everywhere and I invested in cheaply valued companies on the 28th of December 2008(I remember the exact date cause i shoved my life savings in stocks that day), those were mainly Shinhan financial (SHG), Denison mines(DNN), teck cominco or teck ressources as it is now (TCK), and AASTRA (AAH only traded on the Canadian TSX), the stocks went up and down till march and I decided to buy 5000$ more of Shinan (SHG) on the 6th of March because I though the price was incredibly cheap. All these stocks have giving me ample rewards by mid year and I decided to sell pretty much all of them because better opportunities were out there, bought some sims metal management(SMS) in April and sold it at the end of July, and now the list of stocks on my profile are what I hold at the present moment (except for the Argentinian stocks which are almost impossible to get at reasonable price with that stupid low volume of trades.) Unlucky for me that I discovered this site only in July or my score would be much higher now.

 One buy I am not very proud of getting and recommending especially is Speedway motorcorps (TRK), I didn't check the financial statements properly and ended up buying what looked like a discounted company, with nice average low pe over 7 years past and a low price to book ratio, but was in fact a slightly overvalued and indebted company in my opinion because of all the goodwill and intangible assets registered on their financial statements which I didn't notice at first sight(Never going to happen again!).

 I'm not sure if my investment strategy is sound or not, but basically I look for company that no one else wants in this depressed market like jewelry and diamond miner Harry Winston (HWD), look at their past 7 years earnings (if they've got 7 years on the market), read their financial statements, give then a price to book for tangible assets and try to guess what price they will be in 10 years by increasing their asset value year by year by the average earnings and multiplying a normal price to book to that value)Simple as that.

Well hopefully my current choices will prove that they can survive this recession with all their low debts and small deficits that they are incurring this year, and in 2-3 years they'll make some money and their value will come back to a more reasonable amount.

First ever blog, hope anyone reads it and give me a couple recs so more people can read it, trying to find some like minded people around this social network so if you want to contact me; email is and my name is Simon

Thanks for reading.

4 Comments – Post Your Own

#1) On October 06, 2009 at 8:57 PM, USNHR (29.50) wrote:


 Thanks for serving.


Go Navy, Beat Army!

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#2) On October 06, 2009 at 9:00 PM, ozzfan1317 (69.84) wrote:

Yes Go Navy beat Army..!! Also good stuff I was a little more conservative but I'm up about 3,000 this year.

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#3) On October 06, 2009 at 9:04 PM, ChrisGraley (28.89) wrote:

While you have definately put together a nice group of companies that are priced below book value, I would caution you that some of these companies are below book for a reason.

Remember that your are not just buying the stock, you are buying the business.

Warren Buffett could not turn textile manufacturer Berkshire Hathaway into a successfull company, so he had to make it his holding company for better investments. Take a long hard look at what you have invested in and see if those investments pass these criteria...

1) Did the market punish this company unfairly?

2) Do I trust the company to put out honest financials?

3) Do they have a product that people still want?

4) Would I be nervous about this company if my life depended on their success?

If any of the first 3 are yes and the last one is no, then you are golden, but if not, I would think long and hard about the stock.

I'm pretty certain I'd only be invested in a magnetic tape storage company right now as a bankruptcy play. If I was sure that I could get back more than my investment after the bond holders are paid, then I would do it.

I have never trusted the finance statements from dry bulk shippers, especially ones in Greece.

I wish you luck and I'm sure that you are on the right track, but I believe that you may need to research the viability side of things a little more.

IMN can say they are investing in better technology, but that doesn't mean that they will be successful at it.


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#4) On October 08, 2009 at 1:33 PM, bucheron (58.68) wrote:

ChrisGraley, For your first 3 questions I can answer yes with a fair degree of certitude, but for the last one I don't think there's any investment I would make where my life depends on it, so that question is an obvious no to all my investments. 

 I think most of the stocks I have picked have got a good chance of surviving this crisis and most of them have got more upside then downside possible, since they are all undervalued in my opinion.

 As for IMN, it is not one of my major investment but from what I've seen, its looking like they are trying to turn things around and offering more up to date data storage like their new Solid state drives, and I've read a bunch of reviews and customers reviews and all of them said the material was grade A+ with no problems whatsoever. 

 I would just like to know why you don't trust the financial statements from Dry bulk and Greece any past experiences? By the way I don't own Danaos(DAC) corporation but I do own TBSI.

 Yeah and Army do beat Navy anytime! 

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