PaulRen's blog

So called "Buy and hold" investor advocates', try (often in disguise), to support the notion not to be an active investor around individually selected securities -and then to micro manage these through selective profit taking and re-balancing over time.  Many for various reasons want you to believe to just "buy and hold" the portfolio, even while the world is changing faster than ever before.  Managing a portfolio of securities is a form of art and one which can be learned and when done with some discipline and skill can lead to substantial greater returns over time.  Especially if one appreciates some distinct advantages individual investors have over mega institutions with their share liquidity constraints.

An  astute investor can check insider buying or selling by company directors or their key insiders.  Such share transactions-activity must be filed to the SEC regulators, as in Thailand they must and do.   While insiders may have many reasons to sell;  there is only one reason why they would buy.  An insider may have to pay for a wedding, a new car,  an education for his/her children, a trip, a new house,  etc...but when an insider buys it just about always means they think their stock is presently undervalued.  Of course, they can be too early or late or outright wrong, but its a solid additional investor tool to confirm other supporting fundamental analysis -when considering investing in a listed companies's stock.  We here follow such activity consistently.

As the year 2015 is coming to an end we have noticed and so reported to contributing members some rather large insider-buying on a number of companies I follow -and like.  Its pretty obvious to me that more then a few directors and other significant insiders seem to think as I do that Thai stock selling is overdone... some companies's stock price are now at levels which go begging.  Insider buying/selling is perfectly legal as long as its reported in a timely fashion as required to the Thai SEC.   It also looks increasingly clearer of late that the Thai economy has bottomed and is ready to gradually recover into next year. Hence I refuse to turn bearish and instead think the SET market is establishing/bouncing on a significant bottom at current levels of 1260 and patient investors will be rewarded.