Heads, i win; tails, i don’t lose much investment opportunity

Plenitude Bhd Annual report and AGM FY 2024 insight

Howard Marks once said, “Predicting the future is difficult, but understanding the present situation is much easier." For investors, understanding what is already priced into the market and the current attitude toward risk is crucial. This strategy, often referred to as cycle positioning, enables investors to buy during periods of market pessimism and sell when the market becomes overly optimistic.

In the case of Plenitude Bhd, a real estate company we covered this year, insights from its AGM revealed significant potential that remains underappreciated by the market. Despite its understated presence and limited analyst coverage, Plenitude’s strong fundamentals suggest it could be an undervalued gem. This presents a timely opportunity to invest at an early stage of property market recovery while the market remains disengaged. Below, I delve into the key takeaways from the AGM and explain why this company may offer a rare combination of strong downside protection and attractive upside potential.