Investment lessons from investor who generated 38.4% yearly for 15 years, against the benchmark returning 1.8%

by admin - 17-07-2025


Niwes Hemvachiravarakorn, a value investor and known as 'The Warren Buffett of Thailand”, features in the book “The World’s 99 Greatest Investors”. A must read, the book describes a few of his investment nuggets worth noting.

 

1. EMBRACE A CRISIS. TURN IT INTO AN OPPORTUNITY 

Stock market crises could turn out to be opportunities for the picking. The cyclical nature of markets and the crises that frequently strike them could turn out to be excellent opportunities to buy fundamentally sound companies.

As Warren Buffett says: Buy the fear. Sell the greed. Hemvachiravarakorn suggests that stocks are amazingly inexpensive in these uncertain times. Attractive entry points and appealing valuations could present opportunities to bag some sound investments.

Hemvachiravarakorn, who was fully invested in the 2008 global financial crisis when markets dropped more than 50%, borrowed money to invest in great companies. A year later, his investments were up 140%.  

 

2. FIND A GREAT COMPANY GOING THROUGH TROUBLE

Businesses too are cyclical. Even good and the great companies traverse several cycles in their lifetimes. That is when, Hemvachiravarakorn suggests, one should hunt for bargains because expectations are low and share prices, attractive.

However, he cautions that the company’s problems should be solvable, fixable and possibly short term.

Markets tend to magnify short-term events. A negative phase or crisis that a company is faced with in the short term accelerates selling.

That is when value emerges for those looking for long-term investments.

 

3. BUY IN BIG CHUNKS

As with every legend, including Warren Buffett, Charlie Munger and a few others, Hemvachiravarakorn suggests that when investors come across such opportunities such as a stock-market crisis or a great company in a difficult phase, investors should load the truck.

Instead of buying a small portion of that company, they should up their allocation to secure the full benefits of a recovery.

Investors, however should be wary of mistakes and mis-judgments.

They should be sure of what they are doing and thoroughly understand investment arguments and be ready to accept mistakes. 

 

4. COMPANIES GROWING EARNINGS CONSISTENTLY

He suggests that the best strategy is to invest in companies which can grow earnings consistently.

As it is said, markets are slaves to earnings. Companies and their share prices reflect their earnings potential.

Share prices sooner or later reflect companies with consistent earnings growth.

Holding a portfolio of 5-7 such companies has worked wonderfully for Hemvachiravarakorn, who has a special preference for such companies.

 

Niwes Hemvachiravarakorn’s approach offers timeless wisdom for investors seeking long-term success. By embracing crises, identifying fundamentally strong companies in temporary distress, and making bold yet calculated investments, he demonstrates how patience and conviction can deliver extraordinary results. His emphasis on consistent earnings growth reinforces the idea that markets eventually reward quality businesses. For value investors, his philosophy serves as a powerful reminder to stay rational, disciplined, and focused amid market volatility.

 

Note: This note is based on the informations shared in the book, " The World's 99 Greatest Investors" 

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