STI close: 2868.69
PE10: 11.93x

So, the news of Swiber’s demise probably led to more damage than Brexit. However, as far as long term investing goes, you probably won’t find a better time to start. A colleague mentioned to me last week about how everything he’s bought recently has gone down even further. Frankly, I’m not surprised given how he tried to bargain hunt Noble and some O&G related counters. I wouldn’t have touched those with a 10-foot pole given how difficult it is to make money in those industriesĀ in the first place.

I’ve been starting to see a wider spread of returns than what the PE10 model would predict so it does seem that the accuracy of the model is getting weaker. However, as a guide to longer-term (5 years and more) returns, the model is still holding up well. Anything under a PE10 of 15x has yet to show terrible returns.

I’ve begun to do a series for beginning investors so if you find it useful, stay tuned for more!