Chung Kee_Asset Allocation Contrarian Thinking_Hong Kong Macau Exclusive

Author: Chung Kee Publisher: Bright Culture Size: 150mm x 210mm Pages: 240 ISBN: 978-988-8605-84-2 Publication Date: May 2020 [Book Synopsis] 2020 is certainly an unforgettable year! The global outbreak of the novel coronavirus pneumonia at the beginning of the year, with over a million infections, caused widespread panic. Economic activity came to a near standstill, with the aviation, hospitality, tourism, catering, and retail sectors becoming major disaster areas. Unemployment soared, supply chains fractured, consumption weakened, and the economy plunged into recession with a bleak outlook. In terms of financial markets, the ravages of the novel coronavirus triggered global market volatility, with sharp declines across stocks, bonds, and oil prices amidst fierce competition. This book, "Asset Allocation: Contrarian Thinking," was written during the novel coronavirus pandemic. While staying home to avoid the virus, author Chung Kee found revisiting financial books on his shelf the best way to pass the time, reinforcing his confidence in value investing and preventing him from being swayed by market sentiment and noise. In fact, for long-term investment, it's about a company's value, not short-term stock price fluctuations. One should spend more time researching a company's fundamentals and valuation, managing their asset allocation effectively, and refraining from constantly checking stock quotes, which can affect one's mood. The book is divided into five chapters. Chapter 1 discusses "Investment Philosophy and Wisdom," aiming to solidify readers' belief in value investing. The first part reminds readers to follow the right path in investing, while the second part showcases examples of learning from mistakes. During market downturns, when everyone's confidence tends to waver, this chapter is particularly worth reading. Chapter 2 covers "Asset Allocation," as it is the most crucial factor influencing investment returns, followed by stock selection and market timing. It is hoped that before investing, readers will thoroughly understand asset allocation methods suitable for them. Besides pursuing investment returns, they should also consider their risk tolerance before learning how to select quality stocks, ensuring they do not put the cart before the horse! Chapter 3 delves into "Contrarian Thinking." Value investing is inherently contrarian: buying when others are fearful and selling when others are greedy. This approach offers a higher chance of achieving excess returns. However, there's a gap between theory and practice due to human emotions; investors can easily be influenced by market sentiment and make incorrect judgments. Achieving "contrarian thinking" is not easy! Chapter 3 provides in-depth exploration and practical examples. Chapter 4, "Financial Report Traps," synthesizes the author's many years of investment experience, summarizing potential red flags and warning signs in financial reports into "Seventeen Key Tips" for readers to remember and protect their investments. Chapter 5, "Valuation in Practice," lists valuation examples and updates for various listed companies, detailing valuation calculation methods and sources of financial data for readers' reference and practice. It allows readers to calculate valuations themselves and understand how to apply different valuation tools to assess companies of various types. The scope is extensive and highly valuable for reference, making it a must-read for the audience. [Author Biography] Chung Kee Has worked as a stock analyst and fund manager at several financial institutions, and as an investment manager at a Hong Kong-listed company. With over 20 years in the financial industry, he holds an MBA from The Chinese University of Hong Kong and is a Chartered Financial Analyst and a Fellow of the Association of Chartered Certified Accountants.