Quality-first, Business-perspective Strategy, Urbem (HK) Limited

Steven Chen

Steven CHEN is a quality-first, business-perspective investor.

Steven can be reached at schen@urbem.cn or steven@hillsidewealth.ca.

Quality-first, Business-perspective Strategy

Equity Bottom-Up

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<li>The share of VTech seems to be a decent candidate for a high-yield bond proxy for investors with a low-teens hurdle rate;</li>
<li>The business is "boring" but has a proven track record of producing super-normal returns on capital despite scant growth;</li>
<li>However, as there is seldom any free lunch in the stock market, investors should be cautious with the risks that the high yield is likely to compensate.</li>
</ul>


The share of VTech seems to be a decent candidate for a high-yield bond proxy for investors with a low-teens hurdle rate;
The business is "boring" but has a proven track record of producing super-normal returns on capital despite scant growth;
However, as there is seldom any free lunch in the stock market, investors should be cautious with the risks that the high yield is likely to compensate.


VTech: Profitably Leading The Boring Industries But Not High-Quality Enough

Vtech Holdings

VTech: Profitably Leading The Boring Industries But Not High-Quality Enough