Solid up to date evidence and then some.

paulren's picture
Category: 
External Research

I for one am getting nauseous crying out loud on this theme, again and again since 1997.
The article quoted below is the solid, up to date and quantative evidence, for all to see.

Why this is so,  here I hope the reasons are explained one last time:

Very high returns are to be achieved here along with lower then market volatility, through the rational value investing concept.

Far from being the common sense investing, accepted in most all developed markets, the Thai market it hugely so mispriced.

The reasons are the triple whammy of  1) ever larger institutions obsessed with liquidity, 2) the Thai brokers galore pumping transactions for commissions combined with 3) the same old locals which for the most part just day trading.  Put these 3 together and grease it up with nouveau computer enhanced trading along with 15 years of such growing deviances, yeap growing like a virus, and you get huge, grotesquely so, market distortions. Amen.

The real amazing part is how , despite years of this, so few have caught on, how even less are members here and how not even one with some real means has grasped that if an experienced guy like me was full time in Bangkok regularly visiting companies, continuously, the returns would only be magnified, perhaps several fold.  Because, in addition to avoiding the known wall flower duds, the experienced operator could find many more winners.

But destiny is that too few are paying members, nobody else seems to believes it, brokers are/remain aloof and Thai's themselves are just not the experienced equity culture, with most staying away because brokers just don't put investor returns/success first.  Past bad experience for years, takes their appetite away and so they invest most only in shophouses, land and condo’s….and 13 trillion Baht just sitting in the Thai Banks.  And when I talk/write about it all,  I get labeled by local brokers as "the nasty customer".

I have just recently come across the following professional study, call it the solid up to date evidence.

http://www.wbiconpro.com/330-Paiboon.pdf

Best Regards,
Paul A. Renaud.
www.thaistocks.com