Investment Approach

Maxivalue Advisors’ approach to investing is rather traditional and conservative: rigorous stock picking, relatively concentrated portfolio, an inclination to value investing, and deep fundamental research. We combine the bottom-up approach with top-down approach to select the stocks, and seek certainty and margin of safety on each investment in the portfolio.

    Investment strategy:
  • Extensive and deep fundamental research, emphasizing comparable analysis among peers.
  • Highly selective in picking stocks, only choosing those we can understand.
  • Make a few bets, and run a relatively concentrated portfolio.
  • Pay little attention to the short-term fluctuation, generally hold a position over a year or even longer.
    Frame of investment research:
  • Study the industry: study the key factors and core questions of the industry, grasp the main direction, key trend, and big picture of the industry.
  • Study the company: determine the true quality of the company through qualitative analysis and quantitative analysis, grasp the core competitive advantages and key factors, and pinpoint the key issues and potential catalysts.
  • Study the valuation: use multiple valuation methods to gauge what the stock is real worth, and make sure to leave room for error before initiating a new position.
    Four types of stocks we like:
  • Small to middle size market cap companies: great growth potential, solid fundamentals, and attractive valuation.
  • Blue-chip companies and resource companies: solid fundamentals, meaningful competitive advantages, great cash flow, and deeply undervalued.
  • Turn-over companies: the stock price might’ve be depressed for some time, but the prospects are brightening with the increasing likelihood of turnover in fundamentals.
  • Cyclical companies: the valuation on its historical lows, but the business is on the way to booming, or expects to see some short–term catalysts.