At a time when Thai investors are focusing on foreign stocks—whether in the US, China, or AI-driven technology shares—they may overlook that "Thai stocks" still hold valuable opportunities that might not yet be included in their portfolios, even as the Thai stock market showed outstanding performance in 2026.
The SET Index delivered returns among the best global stock markets, highlighting an interesting picture that Thai stocks may not be as "poor" as many think. Amid a market long overlooked, where are the "good finds" or Hidden Gems hidden?
. "The Hidden Gems: Is Holding Thai Stocks Unfashionable? Searching for Good Finds No One Has Seen Yet" At MONEY FEST 2026, this topic was analyzed through the perspectives of Chao Chaloemdej Leewongcharoen, a value investor (VI) and former president of the Thai Value Investors Association (Thai VI). . And Ping Prakit Siriwatnaket, Managing Director of Mershion Partners Fund Management Company Limited. They delved into how individual investors can leverage advantages in investing in the Thai stock market.
Chaloemdej noted that looking back at global stock market history shows no market performs well all the time; all have up and down cycles. Between 2000 and 2010, Thai stocks did well while the US market faced pressure after the dot-com bubble burst. The following decade saw a reversal, with Thai stocks languishing while the US market grew strongly.
Therefore, the key is not to judge a market as "good" or "bad" based on returns over a certain period but to understand the cycle. Times when a market is out of favor may present investment opportunities if one can find companies with solid fundamentals whose stock prices have been depressed along with the overall market.
The essence of investing is not buying what is already doing well but finding what is struggling yet has potential to turn around. Investors who can spot turning points before the market does may benefit from such changes, while buying assets when everyone recognizes their value may mean paying a higher price.
On the other hand, Prakit gave an example that he once advised avoiding Thai stocks due to perceived risks. However, after political changes and significant price drops, his view shifted, especially since market valuation was low then and some sectors offered attractive dividend yields.
Factors making the Thai market attractive at that time included not only economic reasons but also "political turning points," which in emerging markets often influence capital flow directions.
Currently, the situation differs because SET valuations have risen. The overall market P/E is around 16-17 times, or 14-15 times excluding DELTA, while some Asian markets trade lower. Thus, more caution is advised, though Thai stocks, especially dividend-paying ones, remain appealing.
Chaloemdej said his approach has always been to focus on individual stocks with a long-term view rather than the market as a whole. He likens investing to partnering with business owners—if one can find companies whose sales and profits grow many times over 20 years, investors’ returns can grow in line. The key is to discern "what will grow in the future" rather than how popular a company currently is.
He shared that over 20 years, he has traded about 30 stocks, but only around two generated significant returns. One stock once rose 100 times from cost, while the other 28 delivered less impressive results.
Thus, success doesn't come from picking the right stocks every time but from discovering high-potential stocks and investing sufficiently when confident in the opportunity.
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Chaloemdej believes such stocks still exist in the Thai market because, over the next 5-10 years, AI and humanoid robots will drive major transformations, creating winners and losers in business sectors. Companies that can use these technologies to boost sales, reduce costs, and adapt quickly have growth potential. The challenge lies in identifying them while still small, as success reflected in financial statements may come after stock prices already reflect growth.
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Meanwhile, Prakit thinks the Thai stock market must shift from investing solely based on "stories," since interesting stories don't guarantee real growth. Investors must reassess the country's big picture and each company's potential.
Good stocks aren't necessarily the cheapest. If a company has proven it can grow, its price may have already risen. Investors should temper return expectations, for example lowering a 10x target to 2x if the business fundamentals still allow expansion.
Prakit cited electronic component stocks once seen as producing unwanted products, yet still possessing factories, engineers, and operational capabilities. Attention focuses on whether these companies can adapt products, find new customers, and create new deals.
When signs of successful adjustment appear, stock prices may reflect new expectations. However, after price increases, investors may need different strategies to manage returns and risks compared to buying at very low prices.
Chaloemdej suggests investors seek companies at the early stage, citing Starbucks, Nike, Apple, and Walmart as examples of small businesses that grew into global brands.
Thailand's opportunity in the next 20 years may lie in companies transforming from Thai businesses into global companies, with AI and digital platforms enabling faster brand building than before.
Consumers may have an advantage by spotting viral products or popular brands before sales and profits fully reflect growth. Therefore, investors should learn to translate everyday observations into investment opportunities.
Prakit agrees that one way to find Hidden Gems is identifying businesses capable of building global brands, especially in sectors where Thailand is strong, like food and consumer products.
Analysis must start with the "product's" potential to sell internationally, followed by market potential and management quality. Executives focused only on local brands may limit growth, while those with clear strategies to build global brands and expansion plans deserve close attention.
However, Thai stock strategies may not only seek "30-bagger" stocks but also build portfolios from companies with strong cash flow and attractive dividend yields, combined with businesses exposed to global economic and investment growth.
Ultimately, a Hidden Gem is not the "cheapest" stock but a company whose future potential is underappreciated by the market and has factors enabling significant growth, such as building a global brand, using AI, structural changes, or strong cash flow and dividends.
The key for investors is not to look for the "coolest" stock but to identify companies transitioning from what the market hasn’t yet seen to what it will need to recognize in the future.
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