Tuesday, 19 November 2013
A good and safe bet
In the upcoming issue of The Edge is an article on a Bursa Malaysia listed company that I would invest for my children.
The underlying assets are excellent and will gain values over time, much faster than inflation or bond yield. The Management is conservative and has a good track record. The Company is cash-rich and can easily withstand any economic slowdown. Operating costs are prudently managed.
Yet, it is trading at a very cheap valuation. There is no imminent competitive risk to the Company.
It is one of the few cases where you can invest and sleep soundly.