Showing posts from March, 2018

Watchlist: ThaiBev Y92 (2)

Previous post: Not wanting to catch a falling knife, I shall wait for the plunge to end and consolidation to set in before entering. --- Side notes: Maybank is now running a promotion for fresh funds fixed deposit at 1.65%. Finally increased. If you are not looking to touch your emergency money for a number of years, then SSB is an attractive option. It is giving 1.65% payout too on the first year.

Book review: Momentum - how to build it, keep it or get it back

This is a big concept book by Michael Mcqueen. It brought me through the equation of Momentum with brilliant explanations on each part of the formula and a number of case studies on famous companies like Sony, Lego, Facebook and Kodak. You will find the equation at the end of this blog post - after snippets of wisdom which I have lifted from the book (they are in italic, whereas my inputs are in non-italic). The momentum concept covered is not just for individuals (who are turning into couch potato or in status quo like myself), it is also useful for leaders who are looking to veer their sluggish companies in new directions (turnaround). Getting into momentum... You can't steer a parked car. When a car is stationary, you can turn the steering wheel as much as you like but it will have no effect/ However, when a car is in motion, even if it is going slowly or even in the completely wrong direction, you can always steer. While it is great to be inspired, don't make inspi

What swimming taught me about investing

Investing is pretty much like taking a plunge. Swim or sink. I could rely on others to keep me afloat, for a while, but not forever. People can set different goals and pace for themselves (I don't need to be like everyone else). The end of a lap always seems very far away (as I am short-sighted, I can hardly see it) when I started out. With consistency and perseverance, I will eventually reach the other end. I swim in the style I am most comfortable and adept in. It may not be the fastest stroke but it should definitely be one that keeps me afloat and moving. Yeah, it's very much each to his own. Strength and stamina will determine how fast and how I you can go. Just like in investing, 3Ms is my strength and account size is my stamina. Lots of time and practice are needed to build both strength and stamina. Conserve energy if I want to do more laps. -- We can choose to swim in a peaceful swimming pool, we can choose to swim in the sea. We can choose to invest in bo

Opportunity costs in stocks market

When we speak of making profits through stocks investing and trying not to lose money according to Buffet's rule, there is a part of the processes which we may overlook. That is - how good we are at minimizing opportunity costs in our investment journey. As we go along doing so, we should constantly seek to mitigate risks and identify market opportunities. Here are some ways which we could incur opportunity costs (from my retrospective checks as I evaluated my current portfolio performance): 1) Sitting on too much cash in a bull market run or waiting for a crash to happen before acting This is a total opposite of FOMO (fear of missing out). I can think of two possible reasons for sitting on cash - one predicts that a bear may strike soon (fear of losing) or one is not sure which stocks to buy. These cash on hand sort of erode away in value with inflation (ooh the scary term) as the bull market charges, losing out on capital gains and dividend yields. War chest under-util