Investing in the stock market is a means to achieve an objective. When I first started, my objective was to buy a home and I achieved it within seven years. Now I am investing for my retirement fund.
mohnish pabrai said to be rich, compound interest rate & length of the runway. but if you are not born rich, and you are rich only when you are like 60years old. what is the use of money then? so need to combine both, find a middle path. sometime aggressiveness and margin might be a means to increase that compound interest rate. but if unlucky.... no black and white answer le.
This is true, my new year goal is to save less money ahaha.
cheoky mohnish pabrai said to be rich, compound interest rate & length of the runway. but if you are not born rich, and you are rich only when you are like 60years old. what is the use of money then? so need to combine both, find a middle path. sometime aggressiveness and margin might be a means to increase that compound interest rate. but if unlucky.... no black and white answer le 23/01/2018 22:37
Barely above 15. It would have been ~20% if not for my gross misjudgment and inexperience on several stocks.
If i can get 15-20% per annum for 50 years, i and my investors will very happy. In any event, records done during bull periods don't mean much. Its how you do during recession that counts.
CharlesT I pressume yr return is less than 15% last year...no bad is better than calvin but still in bottom 50 29/01/2018 07:17
I too, would like to discover if im a donkey that can talk and write well. Or a good or maybe even great investor.
Time will tell. I promised myself i will find out. I give myself a minimum of 10 years. If i cant beat the KLSE by 10% CAGR over that time period. Maybe i'm just not that good.
CharlesT In any event, records done during bull periods don't mean much. Its how you do during recession that counts.
Yeap, during bull mkt even donkey also can make 15%... 30/01/2018 15:48
last year most counter drop almost everyday, unless u r gain is from specific counters, if u open more counters ,the great your chances of making losses.
i learn my lesson last year, dont open so many counters but focus on specific counter, the more u open, the greater your risk. Be focus,hit, dont fall in love with stocks, cut win.
But if they up, would your philosophy be buy more counters to diversify?
Haha
Posted by hollandking > Mar 23, 2018 06:12 PM | Report Abuse
last year most counter drop almost everyday, unless u r gain is from specific counters, if u open more counters ,the great your chances of making losses.
Just hold only. No need think so much. Make sure you collect cash, so if really drop till stupid, can buy.
Posted by CharlesT > Mar 23, 2018 06:06 PM | Report Abuse
Mkt bad most people will lose money lah Mkt good (2017) most people will make money lah
Im not saying you should be constructing portfolio properly for risk management purposes. I'm saying, unless you have a large enough amount of money, and access to so many asset classes. As well as knowledge in so many.
In a crisis, correlation goes to 1. Every single asset class drop whether or not it is related.
So much for all that portfolio construction. In Malaysia, portfolio construction for retailers is largely a waste of time. Just sendiri be smart, dont expose yourself too much to one stock or industry.
It is people with CFA's who caused the financial systems to crash in 2008. Not OTB types.
>>>>The main preference, would of course be a business in a fantastic industry, with a long-term competitive advantage (or “Competitive Moat”), operated by honest and competent people and most importantly available at a fair or very attractive price.>>>>>
These are also the four tenets of Buffett and Munger in their selection of stocks to invest.
>>>>>During our project to read 5 years’ worth of annual reports for all 926 companies listed in the KLSE, we have found one, and it also happened to be available at a fair price. The other will of course be the one and only Public Bank (Do note a few more have since been found, but prices are not as attractive).<<<<
Staying within one's circle of competence is a great discipline. I too have screened through the stocks in the KLSE and found only about 20 stocks that fall into the category of great companies. Applying a stricter requirement, reduces these to only a few. Often, as you mentioned, these stocks are trading at fair to high prices.
This is likely to be my structure for the next 5 years, until i have a silver of a track record. Good record, can start a proper fund. Bad record, manage my own money.
2 options.
1) I guarantee your capital plus the highest prevailing FD rate in Malaysia, 3,5 to 10 year lock. If you want put alot, a long ass lock. 60% above that FD rate is mine, 40% is yours. I wont take more than 50% of my own equity as i dont want to over leverage.
2) No profit. Win or lose you keep. Ill just manage your account.
Posted by 3iii > Mar 23, 2018 08:03 PM | Report Abuse
>>>Staying within one's circle of competence is a great discipline. I too have screened through the stocks in the KLSE and found only about 20 stocks that fall into the category of great companies. Applying a stricter requirement, reduces these to only a few. Often, as you mentioned, these stocks are trading at fair to high prices.<<<
How do you screen these stocks?? by reading manually or use some sort of screener??
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Posted by teoct > 2018-01-22 15:49 | Report Abuse
What are the counters?