Link to original video by THE STANDARD WEALTH

ดร.นิเวศน์ ลงทุนสไตล์ VI ยังชนะตลาดหุ้นไทยได้หรือไม่? | WEALTH IN DEPTH #69

Summary of "Dr. Nivesh: Value Investing in the Thai Stock Market"

Short Summary:

This video explores the concept of Value Investing (VI) in the Thai stock market, focusing on the experiences and insights of Dr. Nivesh Hemwachiravarakorn, a prominent Thai VI practitioner. The video highlights the potential of VI to generate wealth over the long term, even in a challenging market like Thailand's. It discusses the evolution of VI in Thailand, from its early days in the 1990s to the current era of growth stocks and potential "corner" situations. The video also provides advice for aspiring VI investors, emphasizing the importance of patience, long-term vision, and careful selection of companies with strong fundamentals.

Detailed Summary:

Section 1: Dr. Nivesh's Journey into Value Investing

• Dr. Nivesh began his investment journey in the late 1980s, initially using technical analysis but later realizing its limitations.
• The 1997 Asian financial crisis led him to seek a more robust approach, leading him to discover Value Investing principles.
• He started with a 10 million baht investment, which grew to over a billion baht within a decade.
• He emphasizes the importance of buying undervalued companies with strong fundamentals and holding them for the long term.
• "Where you invest is more important than when you invest."

Section 2: The Evolution of Value Investing in Thailand

• The early days of VI in Thailand were characterized by a lack of sophisticated financial analysis and a focus on technical trading.
• The 1997 crisis marked a turning point, leading to the emergence of a VI community and the publication of Dr. Nivesh's book "Tee Taek."
• The 2008 global financial crisis created another opportunity for VI, as many undervalued stocks became available.
• The rise of growth stocks and "corner" situations has presented new challenges for VI investors.

Section 3: The Risks of Corner Situations

• Corner situations involve stocks that have been artificially inflated by a small group of investors.
• These situations can be risky, as the price can collapse quickly when the "corner" breaks.
• Dr. Nivesh warns against investing in companies that have experienced rapid growth, as this may be unsustainable.
• "If a company is growing too fast, it's probably not a good investment."

Section 4: Advice for Aspiring Value Investors

• Dr. Nivesh emphasizes the importance of patience, long-term vision, and careful selection of companies with strong fundamentals.
• He suggests investing in companies with a history of consistent profitability and a strong management team.
• He also advises against using leverage or margin trading, as this can amplify losses.
• "The best way to invest is to buy and hold for the long term."

Section 5: The Future of Value Investing in Thailand

• Dr. Nivesh believes that VI still has a place in the Thai market, but it will require a more disciplined and patient approach.
• He suggests looking for opportunities in emerging markets, such as Vietnam, which have a similar growth trajectory to Thailand in the past.
• He warns against investing in markets that are already mature, such as the United States, as it is difficult to predict future growth.
• "The best way to find value is to look for companies that are undervalued and have the potential to grow."

Section 6: The Three Pillars of Wealth Creation

• Dr. Nivesh outlines three key principles for building wealth:
  • Save: Accumulate a significant amount of capital through consistent saving and smart financial planning.
  • Invest: Choose investments that offer the potential for high returns over the long term, such as stocks in emerging markets.
  • Time: Patience and a long-term perspective are crucial for maximizing returns.
• "Time is the most important factor in wealth creation."

Conclusion:

The video concludes by emphasizing the importance of Value Investing as a strategy for building wealth over the long term. It highlights the challenges and opportunities facing VI investors in the Thai market, and offers practical advice for those seeking to achieve financial success through this approach.