So what was your strategy that helped you to get 16 profitable investments in 3 years? What are things we need to consider in setting up an investment strategy?

Hi,

My investment philosophy is based on looking at the business, management and financial of the company then follow by the valuation part. In my earlier years of investing, I am more of a number person who focus a lot on financial numbers which later I realised that is not a good idea becuase in Asia, financial numbers can look beautiful at the start but deteriorate later.

Hence, the most important thing is to focus on the business and management of the company. Focus on predictable business will generally improve your odds of winning over a long run with aligned management.

you want to always pay at the right price because a good business can be a bad investment if you pay at the wrong price. Hence, knowing how to value the company is important. If your business is predictable then simple PE or Price to cash flow ratio is able to do the job.

Lastly, choose your style of investing, different investing style require different type of analysis for different type of companies.

First price determine your returns
Secondly the company must have positive operating cash flow, low debt and high returns on invested capital.