Manila:First paragraph of the news story.
According to Thai News Agency, Dr. Nives Hemvachiravarakorn believes that successful investing is not about timing the market, but rather about identifying "super stocks" and holding them to maximize the effects of compound interest. He emphasizes that these stocks should be selected based on their Return on Equity (ROE), with a threshold of at least 15-20%, indicating the company's ability to generate significant profits from its initial capital.
Dr. Nives highlights the importance of choosing companies with sustainable competitive advantages, such as strong brand presence, economies of scale, or dominance in essential industries. He advises that successful long-term investing requires patience and the ability to foresee a company's growth over the next decade, even when stock prices face fluctuations due to external factors like trade wars or technological disruption.
Moreover, Dr. Nives cautions against excessive diversification, recommending that retail investors should focus on a concentrated portfolio of 5-7 high-quality stocks. This focused approach, grounded in a thorough understanding of the businesses, is key to achieving significant returns over time.
Value investing, according to Dr. Nives, relies on confidence and discipline rather than complex techniques. By investing in companies with strong futures and holding through market volatility, investors can leverage the power of compounding to achieve substantial financial growth.