Financial Analysis
Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Caproasia - Learn more



This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $3 billion.










Most Popular Investment Theories Clients Ask Wealth Managers

What is Value Investing or Fundamental Analysis?  What is Modern Portfolio Theory and Dollar Cost Averaging?

Wealth Managers, Personal Bankers, Private Bankers & Investment Advisors deal with hundreds if not thousands of client’s enquiries a year, managing millions and billions of annual investment transactions.

Working with clients from diverse background, varying understanding of financial markets, they get the same questions all the time.  We look at the most popular investment theories clients ask, or perhaps test wealth managers:



- Article continues below -



Sign Up
Basic Member: $5 Monthly | $60 Yearly
Newsletter Daily 2 pm (Promo): $20 Monthly | $180 Yearly (FP: $680)


The 2024 Investment Day
5th June Hong Kong | 12th June Singapore

Private Equity, Hedge Funds, Boutique Funds, Private Markets & more. Taking place on 5th June 2024 in Hong Kong, 12th June 2024 in Singapore.
Visit | Register here


The 2024 Family Office Summit
16th Oct Hong Kong | 23rd Oct Singapore

Join 80 single family offices & family office professionals in Hong Kong & Singapore
Links: 2024 Family Office Summit | Register here





No. 1 What is Value-Investing?

Currency Movements
Currency Movements

An investment principle originating from Benjamin Graham and David Dodd, made famous by legendary investor Warren Buffet.  Value-Investing involves analysing financial statements and ratios to measure the value of the companies.  If the assessed value is higher than the current market value, the company would be considered undervalued. The investor would buy the stock in view that the stock price will rise and trade around the assessed value.

  • P/E Ratio
  • Cashflow
  • Book Value
  • Dividends

What Client is Really Asking:  If you don’t know about Value-Investing, you don’t know about investing.  Maybe you should learn a thing or two from Warren Buffett about Value-Investing.  If you do know, could we get into some investments that are under-valued, and get similar results (positive) that will outperform the market in the “long run.” – Long run could mean 2 – 3 years or 4 – 5 years.

Related Articles:

 

No. 2 What is Fundamental Analysis?

Investment Analysis
Investment Analysis

Fundamental Analysis is an accounting & finance methodology to analyse the overall business and financial matters of the company.  This involves reviewing, analysing and projecting balance sheet, assets & liabilities, financial cashflow and profit / loss statements.

What Client is Really Asking: Have you done your homework before you recommend the investment?.  Have you looked through the important financial numbers?  If you have done these well, you should be picking good stocks and bonds for our portfolio, which means the portfolio should be doing better than expected – earning lots of money.

 

No. 3 What is Technical Analysis?

Foreign Exchange Charts
Foreign Exchange Charts

Technical Analysis is a study on charting and patterns using historical market data such as price and volume.  Technical Analysis and Popular Theories Examples::

Technical Analysis:

  • Moving Average
  • Relative Strength Index
  • MACD
  • Fibonacci

Popular Theories:

  • Candlestick Charting
  • Dow theory
  • Elliott Wave Theory

What Client is Really Asking: Are you choosing the right timing to go in?  Do you have the 1-year low, 2-years low, 5-years low, 10-years low info?  How about the highs?  Is the price level good now? – that means low enough such that it should be going up / profiting when we are getting in.

 

No. 4 What is Efficient Market Hypothesis?

Stock Market Quotes
Stock Market Quotes

A financial economics theory that all relevant information is currently reflected in the price – making it not possible to do better than the market, over time.

What Client is Really Asking: All the information is already reflected in the market.  Your brilliant analysis is perhaps, not that brilliant, as someone else would have spotted and analysed that too.  Thus, the price is already reflecting that today.  By the way, I know about this theory too, so try not to confuse me. I’m testing you, as I have a genuine interest in financial markets, investments, economic trends.

 

No. 5 What is Modern Portfolio Theory?

Portfolio Allocation
Portfolio Allocation

Harry Markowitz created the Modern Portfolio Theory (MPT) in 1952. The theory involves a mathematical process to construct a portfolio that is optimised for the expected returns, for its associated risks.  If the portfolio is constructed with an expected return of 5%, the associated risks should be the most efficient, thus the lowest risks possible to achieve the 5% returns.

The portfolio construction process includes security valuation, asset valuation, asset allocation and performance measurement.

What Client is Really Asking: Are you well-versed in managing money, wealth, investments and portfolio?  Are you qualified?  Are you certain you know what you are talking about?

 

No. 6 What is Dollar Cost Averaging?

Investments
Investments

Dollar Cost Averaging is an investment methodology to invest regularly to average the prices over time.  This reduces price fluctuations on investments and the investor will be able to buy more units when the prices are low.

Example of Dollar Cost Averaging:

Month 1 Month 2
Capital $100 $100
Price $1.00 $0.50

 

What is the average price?

  1. $0.25
  2. $0.33
  3. $0.50
  4. $0.66
  5. $0.75
  6. $1.00

Read More: The paradox of dollar cost averaging

What Client is Really Asking: It is a simple concept.  Buy when it is lower, and more frequently.  When it goes up, we will earn more money, isn’t it? Are you also following this approach for your clients?  Is everyone doing it?  Do you believe in it?  Does it really work?  When should we buy more?  Perhaps in the future when I have more money to try?  Since it might come down, how about buying at $0.50 instead?

 

No. 7 What is Trending Following?

Financial Analysis
Financial Analysis

Trending Following is an investment or trading approach simply by following a clear trend, especially in price movement.  For example, when the price of a stock or bond or currency starts to go up or down, many other investors and traders would have spotted the trend too.  This means the price movements will be steeper and more predictable, if they caught the correct trend.  If the trader or investor got into the wrong-side of the trend, they simply make a wrong trend following move.

What Client is Really Asking: We don’t really know what trend following is, but it sounds technically sophisticated than simply following the crowd.  This sounds great because we like an intellectual discussion and decision making process.  Should we follow the trend since the trend is clear and it sounds trendy too to employ this approach.  It is also simple to understand:

  • The price is on the way up, it should go higher – so we should get in.
  • The price is on the way down, it should go lower – we should either short / sell.
  • The price is not moving, so it should stay the same.

 

No. 8 What is Herd Mentality?

Investment Conference
Investment Conference

Herd mentality is where many others are investing, more investors are joining in and will join in because many others are doing so.

What Client is Really Asking: Are we investing or should we invest just because everyone is going in?  What if they are all wrong?  But if we don’t get in, would we be missing out on an obvious investments?  Since everyone is getting in, it should be a profitable investment.  Should we not just follow the crowd?  Can you help to make the decision?  You are the expert.

 

No. 9 What is Contrarian Investing?

Contrarian View
Contrarian View

What Client is Really Asking:  Investment is simple – we simply do the opposite.  Do you agree?  Or should we not?  Since everyone who is so convinced is right, are most often wrong, we should just do the opposite.  But I’m not so comfortable today to get into the investments.   Let’s leave it for another day, when the price is much lower.  Really, I am just ultra-conservative and would like to have a good bargain involving little risks and huge returns.

 

Related Articles:

 




Managing $20 million to $3 billion. Investing $3 million to $300 million.
For Investment Managers, Hedge Funds, Boutique Funds, Private Equity, Venture Capital, Professional Investors, Family Offices, Private Bankers & Advisors, sign up today. Subscribe to Caproasia and receive the latest news, data, insights & reports, events & programs daily at 2 pm.

Join Events & Find Services
Join Investments, Private Wealth, Family Office events in Hong Kong, Singapore, Asia-wide. Find hard-to-find $3 million to $300 million financial & investment services at The Financial Centre | TFC. Find financial, investment, private wealth, family office, real estate, luxury investments, citizenship, law firms & more.  List hard-to-find financial & private wealth services.

Have a product launch? Promote a product or service? List your service at The Financial Centre | TFC. Join interviews & editorial and be featured on Caproasia.com or join Investments, Private Wealth, Family Office events. Contact us at [email protected] or [email protected]

Caproasia.com | The leading source of data, research, information & resource for financial professionals, investment managers, professional investors, family offices & advisors to institutions, billionaires, UHNWs & HNWs. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets?



Quick Links


2021 Data Release
2020 List of Private Banks in Hong Kong
2020 List of Private Banks in Singapore
2020 Top 10 Largest Family Office
2020 Top 10 Largest Multi-Family Offices
2020 Report: Hong Kong Private Banks & Asset Mgmt - $4.49 Trillion
2020 Report: Singapore Asset Mgmt - $3.48 Trillion AUM


For Investors | Professionals | Executives
Latest data, reports, insights, news, events & programs
Everyday at 2 pm
Direct to your inbox
Save 2 to 8 hours per week. Organised for success

Register Below

For CEOs, Heads, Senior Management, Market Heads, Desk Heads, Financial Professionals, Investment Managers, Asset Managers, Fund Managers, Hedge Funds, Boutique Funds, Analysts, Advisors, Wealth Managers, Private Bankers, Family Offices, Investment Bankers, Private Equity, Institutional Investors, Professional Investors

Get Ahead in 60 Seconds. Join 10,000 +
Save 2 to 8 hours weekly. Organised for Success.

Sign Up / Register


    InvestorProfessionalFamily OfficeExecutive


    SubscriptionMembershipEvents


    Professional InvestorPrivate WealthFamily OfficePrivate BankingWealth ManagementInvestmentsAlternativesPrivate MarketsCapital MarketsESG & SICEO & EntrepreneursTax, Legal & RisksHNW & UHNWs Insights










    Web links may be disabled on mobile for security.
    Please click on desktop.










    Caproasia Users

    • Manage $20 million to $3 billion of assets
    • Invest $3 million to $300 million
    • Advise institutions, billionaires, UHNWs & HNWs

    Caproasia Platforms | 11,000 Investors & Advisors

    Monthly Roundtable & Networking

    Family Office Programs

    The 2024 Investment Day

    • March 2024 - Hong Kong
    • March 2024 - Singapore
    • June 2024 - Hong Kong
    • June 2024 - Singapore
    • Sept 2024 - Hong Kong
    • Sept 2024 - Singapore
    • Visit: The Investment Day | Register: Click here

    Caproasia Summits

    Contact Us

    For Enquiries, Membership
    [email protected], [email protected]

    For Listing, Subscription
    [email protected], [email protected]

    For Press Release, send to:
    [email protected]

    For Events & Webinars
    [email protected]

    For Media Kit, Advertising, Sponsorships, Partnerships
    [email protected]

    For Research, Data, Surveys, Reports
    [email protected]

    For General Enquiries
    [email protected]





    Caproasia | Driving the future of Asia
    a financial information technology co.
    since 2014




    Previous articleWhy Access to Global Economic and Investment Opportunities is Never Equal for Everyone
    Next articleTop Headlines in the Last 7 Days (2nd – 8th May 2016)
    Caproasia.com covering capital markets, investments and private wealth in Asia. Our users manage, advise & invest $25 trillion assets in Asia