T.U.B Investing

After my update to Big Idea 2 , I decided to also do an update on Big Idea 3 after re-reading its annual report. Big Idea 3's Chairman always give a very insightful context in his Chairman's Statement. Last year, he initiated a cautious approach, but the results turn out to be very different - which is great. Because this shows that the management is not aggressive and have a plan for the future. In fact their numbers tie in with their execution - showing successful integration of the strategy in the business. This year, here are some extract from the Chairman's Statement that got me excited for the future: "...As we begin a new phase of network enhancements and measured retail expansion, coupled with our overall inventory having been rightsized to our desired level of stock turnover, it is highly probable that this pace of cash generation will begin to moderate in the coming year..." "...The luxury watch market has enjoyed a pronounced turnaround in ...

After writing about Big Idea 1 and Big Idea 2 , I will talking about the next Big Idea. Big Idea 3 is actually quite a new company in my portfolio. I have only held it for about 1 month. It was also never mention in any of my portfolio listing. Upon checking, I realize that I have only written about this counter in a 2015 post. Reasons Why This Counter Qualifies as a "Big Idea" 1. Discovering Its Moat I must confess that this company do not really have a significant moat. In fact, its industry have a low barrier of entry. However, as this company sells a "luxury niche product", it creates an invisible barrier of entry.  This is because consumers will not just go to any shop to buy this "product". They tend to choose renowned shops that they TRUST to buy this "product". Since it is also a "luxury niche product", not anyone can just straight away open a new shop to sell this "product". In my opinion, this compa...