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Investing, Richard Cayne

How Valuable is Value Investing?

It goes without saying that we want our investments to increase in value. But value investing here is a strategy for choosing investments compared to growth and other strategies. Some may say that this is an exercise in semantics, but it is important to understand the nuances of these strategies to help you determine your own.

“’Buy low, sell high’ is a simplistic and not very realistic way to think of investing in this day and age, especially when you are organizing your long-term portfolio,” explains Richard Cayne of Meyer International. “You want to cultivate your allocations to ensure they maintain their value or offset other, possibly riskier, investments.”

Value investing focuses on long-term growth

Consider the “value” in “value investing” to mean more “bargain”. As mentioned before, value, growth, and other investment strategies obviously aim to increase value or profits. But value investing specifically searches for companies that are under-valued by the market but that have great potential for long-term growth. This is why it may be better to think of value picks as bargains.

We have all seen how the markets’ knee-jerk reactions can cause a fundamentally sound company’s value to drop in the near-term. The idea is that value investors look beyond the current swings and turbulence that currently affects markets and delve into a company’s performance and future potential.

Value means more than just numbers

Underlying most value investment strategy is calculating an investment’s intrinsic value. Basically, that means how much a stock is worth, compared to what its current price is. A true value stock will have an intrinsic value greater than its current stock price, and this is what makes it an appealing value investment.

Some experts will do this calculating by the numbers. They may look at a company’s price-to-book ratio and compare market capitalization to book value (total assets minus total liabilities). Others may look at price-to-earnings ratios or even analyze a company’s cash flow as it relates to its debt and capital. But there are other factors that are just as important besides numbers. This includes evaluating a company’s overall business model and plans, how it compares to competitors, and current and projected trends in their industries.

Buy low, keep as it goes high with value investing

Monitoring companies for their value investment potential can be a full-time job. And it is for financial professionals. So, if this seems like an appealing strategy for your investment risk appetite, you should find a trusted financial expert, like Richard Cayne, who can answer your questions about how a value investing strategy may work best for you.

January 4, 2021/by admin
Richard Cayne

Estate Planning Mistakes to Avoid: Not Taking Proper Inventory

Estate planning, next to retirement planning, is an important piece in safeguarding your assets. While the latter focusses on your quality of life after work, the former looks to how your loved ones will survive once you’re gone. “Of…
January 30, 2018
Richard Cayne

Estate Planning Mistakes to Avoid: Under-planning

Estate planning is a topic that everyone should consider. Unfortunately, many consider it a difficult topic to ponder, let alone act on. “Often people will leave their wills until it’s too late, or they’ll do it once, quickly, and think…
January 17, 2018
Richard Cayne

Are you sure your national pension is enough?

Many people put thoughts of retirement savings on the back burner, relying on hopes that their national pensions will take care of them in their golden years. “While many countries do offer national pension benefits, what people ultimately…
December 13, 2017
Richard Cayne

Derivatives and their derivations

Many articles in this blog discusses various investment options, some more complicated than others. If you’ve achieved a level of success with your portfolio, you may be tempted to expand into more exotic that holds the potential of greater…
May 17, 2017
Richard Cayne

How do central bank rates affect your portfolio?

It’s often headline news, especially among financial outlets. Apparently whether the US Fed will “raise rates” and by how much seems to be under conjecture and discussed at length and with nail biting anticipation. But how does a 25 basis…
March 14, 2017
Richard Cayne

Are you Cheating Yourself With the Label “Conservative?”

In his work as a financial planning consultant, Richard Cayne of Meyer International occasionally meets people that, despite having a good amount of wealth, say that they don’t have use for the services of a financial planner such as himself.…
December 3, 2015
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Richard Cayne

CEO Meyer International

Richard Cayne Born in Montreal Canada has lived in Asia for over 25 years.  Starting in Tokyo Japan in the 1990’s Richard was in the wealth management sector and specifically helping Japanese High Net worth Individuals with their wealth management needs.  From retirement planning, education fees savings or generational wealth transfer with tax efficient planning Richard has pioneered the offshore financial investment space in Japan.  In Tokyo Japan he was member of various Chambers of Commerce as well as Tokyo Chuo Rotary Club. 

In 2000 seeing the offshore financial planning needs of the Japanese market he setup Meyer Asset Management Ltd to grow the network of clients.  Very few options existed at this time in Japan and the options for investment were quite limited to a handful of generic funds offered by the banks. So wanting to open a world of choice for his investors in Europe, North America and in Asia Richard created relationships with over 200 banks, investment houses and insurance groups.   After 10 years Meyer Asset Management Ltd was ready to grow to serve the needs of various clients all around Asia.  With an eye on the fastest growing region being South East Asia Richard set his eyes on Thailand being the gateway to South East Asia and a very big transit hub in the region.

2010 Richard relocated his company Meyer International to Bangkok Thailand to serve the needs of clients around Asia.  In addition he listed the Meyer Group on a UK London stock exchange so as to show his groups commitment to transparency and sound corporate governance.  Richard is proud to say the Meyer group has thousands of clients over 5 continents. 

Richard Cayne believes the best way to get an understanding of financial planning is to talk about it with one’s family.  In the home with the children and look into strategies and technique to help children learn about it so that they can grow up to be more financially savvy.  From regular savings techniques like dollar cost averaging to understanding the basics of asset allocation one can learn to protect and grow one’s wealth over time.  Richard likes to emphasize that understanding risk is important especially how to evaluate risk adjusted returns.  For example a bank account has low risk but generally no interest is given and so it while being a good parking spot for cash with not protect it from the erosive powers of inflation.

In addition to many public speaking events on the wealth management topic Richard Cayne write articles viewable at richardcayne.com and is an Google & Amazon approved author of Richard Cayne - Estate Planning, Family Savings, & Retirement Richard is member of various Chambers of Commerce around Thailand as well as a supporter of the Cambodia Children’s fund and Baan Dek Foundation which fosters children’s education, health and safety in Thailand.

Richard speaks English, French and a working knowledge of Japanese and is reachable at meyerjapan.com

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