"The stock market rises, so why is my portfolio still in the red?"
Recently, the investment world has experienced increased volatility and uncertainty. Although stock markets have reached all-time highs at times, many investors still face losses. This highlights the critical need to carefully structure portfolios and plan investments to ensure growth in any market condition.
Thairath Money summarizes key insights from the SET in the City 2026 through the perspective of Veerapong Tham, a VI investor and former president of the Thai Value Investors Association (ThaiVI). These insights are compiled in this article.
Veerapong, with over 22 years of VI investing experience, explained that during a Lost Decade—an extended period of economic stagnation—stock indices often fail to grow or even decline significantly. This scenario has affected stock markets worldwide. However, even in such environments, investment opportunities still exist.
For example, the U.S. stock market, from 2000 to 2009, the S&P 500 index declined by 24–25%. Yet, standout companies like Apple, Amazon, Monster Beverage, and Netflix emerged and grew against the trend.
The Japanese stock market, between 1990 and 1999, the Nikkei 225 index fell by 51%. Still, notable companies such as Keyence, Nidec, Fast Retailing, and Nintendo showed promising growth.
Meanwhile, the Hong Kong stock market, with the Hang Seng index dropping 15% from 2014 to 2024, still offered high-growth opportunities with companies like Tencent, AIA, Techtronic, and BYD.
Every crisis presents opportunities. Therefore, selecting the right markets and stocks is more important than focusing solely on indices. Investors do not need to pick every stock correctly; choosing some right ones and holding them for compounded growth suffices.
Selecting good stocks means choosing businesses that act as "cash-generating machines" by looking for:
1) Companies operating in sufficiently large markets, as larger markets offer more room for expansion.
2) Businesses with competitive advantages (moats) that can outperform rivals and show revenue and profit growth.
3) Strong cash flow, since growth without solid cash flow may lack quality.
Another critical factor is management's vision, which influences whether a company or stock will rise or fall. Investors should evaluate business strategies, crisis responses, and governance practices.
Equally important is assessing risk. Good companies should not carry excessive debt, as demonstrated during the 1997 Asian financial crisis when many large firms went bankrupt due to overwhelming liabilities.
To survive as a VI investor, discipline and practice are essential. This includes continually learning about investments, monitoring performance, and reviewing mistakes to adjust strategies in line with one’s risk tolerance.
A basic portfolio construction technique for resilience is “Sustainable Portfolio = Income + Growth + Diversification + Cushion,” which involves diversifying across multiple asset classes.
Veerapong emphasized there is no single best stock type forever. Selection should align with life stage, personal capacity, and portfolio goals.
In youth, when one is more able, investing at various paces or diversifying is possible. As one ages and responsibilities grow, portfolios may need flexibility, cash flow focus, or reduced risk. Clear planning is essential to meet set objectives. There are six main stock types to consider for one's portfolio.
Although fast-growing stocks are rare in Thailand, the other five types can be found domestically. To enhance growth opportunities, investors should also consider international investments.
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