In the long term, the power of compounding becomes ever more evident.
Unfortunately, understanding the power of compounding is not a natural state for the human race; however, it is a critical task.
Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things. - Charlie Munger, Poor Charlie Almanac, 2005.
Many things that are not directly financial will compound. Skills, relationships, and other aspects of life can compound and benefit a person who invests time and money wisely to cultivate these things.
"We have really made the money out of high-quality businesses. In some cases, we bought the whole business. And in some cases, we just bought a big block of stock. But when you analyze what happened, the big money's been made in the high-quality businesses. And most of the other people who have made a lot of money have done so in high-quality businesses."
Take Nestle PE 50x n earnings yield 2% pa loh....!!
Compare to Insas PE 7.5x earnings yield 13% pa loh...!!
With nestle earnings yield of 2% pa assuming its earnings growth is 10% pa....how long it takes for nestle yield 2% pa to catch up with insas earnings yield of 13% assuming nestle growth by 10% pa leh ??
It will takes about 17 years to catch up, provided insas did not grow loh.....!!
Ask YOURSELF U CAN AFFORD or not TO WAIT NESTLE 17 YRS....TO CATCH UP WITH INSAS EARNINGS YIELD LEH ??
PLS DON FALL FOR 3iii FALLACY LOH....!!
IT IS NO WONDER NESTLE CRASH TODAY LOH....BCOS MKT HAS REALISED IT IS OVERVALUE MAH....!!
Posted by stockraider > Mar 21, 2019 12:54 PM | Report Abuse X
Gila fellow go & promote nestle with Pe 50x...boloh loh...!!
Posted by RainT > Mar 21, 2019 12:50 PM | Report Abuse
only orang gila will buy NESTLE now
price is at super peak now
Posted by 3iii > Mar 16, 2019 3:50 PM | Report Abuse
Why Nestle and QL do not deserve high PE valuation like amazon leh ??
Ans; It is a brick & mortar business with mature business where growth is predictable n limited loh....!! So PE 50x is obscene loh....!!
Posted by stockraider > Mar 21, 2019 1:41 PM | Report Abuse X
Use ur brain & think lah....!!
Take Nestle PE 50x n earnings yield 2% pa loh....!!
Compare to Insas PE 7.5x earnings yield 13% pa loh...!!
With nestle earnings yield of 2% pa assuming its earnings growth is 10% pa....how long it takes for nestle yield 2% pa to catch up with insas earnings yield of 13% assuming nestle growth by 10% pa leh ??
It will takes about 17 years to catch up, provided insas did not grow loh.....!!
Ask YOURSELF U CAN AFFORD or not TO WAIT NESTLE 17 YRS....TO CATCH UP WITH INSAS EARNINGS YIELD LEH ??
PLS DON FALL FOR 3iii FALLACY LOH....!!
IT IS NO WONDER NESTLE CRASH TODAY LOH....BCOS MKT HAS REALISED IT IS OVERVALUE MAH....!!
Posted by stockraider > Mar 21, 2019 12:54 PM | Report Abuse X
Gila fellow go & promote nestle with Pe 50x...boloh loh...!!
Posted by RainT > Mar 21, 2019 12:50 PM | Report Abuse
only orang gila will buy NESTLE now
price is at super peak now
Posted by 3iii > Mar 16, 2019 3:50 PM | Report Abuse
focused, concentrated, low turnover,.........plus a bit of experience like Philips and 3iii show, stock market can make money, enough to make a difference.
If that is boasting or self righteous, so be it.
if like raider , a fake buffalo can make money meh?
of if like calvin, spread all over the place, can make money one meh?
focused, concentrated, low turnover,.........plus a bit of experience like Philips and 3iii show, stock market can make money, enough to make a difference.
If that is boasting or self righteous, so be it.
do 1000 trades a year, net, net guarantee cannot make much.
yet I also know got people get Dayang at $ 1, sailang and all in and quit at $ 1.70 , make enough for 2019.
Finally u talk so much cock...i don see any good performance on u have ever shown loh...!!
Unlike calvin tan, the father & most outstanding of 2019 oil & gas stockpicker and has shown his wonderful performance live, he is the best unlike u loh....!!
Margin of safety investment is one of the best investment technique loh..!!
Posted by qqq3 > Mar 21, 2019 6:18 PM | Report Abuse
focused, concentrated, low turnover,.........plus a bit of experience like Philips and 3iii show, stock market can make money, enough to make a difference.
If that is boasting or self righteous, so be it.
if like raider , a fake buffalo can make money meh?
of if like calvin, spread all over the place, can make money one meh?
Unker raider, as long as population keep growing, means more babies born, Nestle and QL with keep growing. People need to eat, so more people means need more food.
That's a CAGR of 6% without including the dividend return, good enough for me. RM 13 in 10 years is just a rough guide, there's so much potential with it, I also very lazy check the price everyday, I don't wish to get heart attack from any surprises anyway even I am only in my twenties now.
Together with div compounded return slightly above 7% pa over 10 yrs loh...!!
That raider see only a normal return mah...!!
Posted by Heavenly PUNTER > Mar 21, 2019 6:53 PM | Report Abuse
That's a CAGR of 6% without including the dividend return, good enough for me. RM 13 in 10 years is just a rough guide, there's so much potential with it, I also very lazy check the price everyday, I don't wish to get heart attack from any surprises anyway even I am only in my twenties now.
unker raider, I don't need excessive returns because I am still young, if can get 10% I am more than happy liao. I don't need to strive for 100% in 1 month and then probably lose it all the next month. So all good with me, QL & Family Mart I am super confident
if you think buying lousy shares like Insas make u tons of money, go ahead and write a thread about how u make millions buying lousy shares like Insas.
calvintaneng 25401 posts Posted by calvintaneng > Mar 22, 2019 10:17 PM | Report Abuse
How Did The Best Investors Achieve Their Results? Two things that I’ve noticed over and over again when studying the investors who have outperformed (Pabrai, Buffett, Schloss, Graham, Greenblatt, etc…):
They were very concentrated (they did extensive research and bought big positions), or They were diversified, but they bought stocks that no one else wanted (they were far less concerned about understanding the intricacies of the business, and more concerned with valuation and numbers) Easier said than done (even for most value investors). Concentration is tough, and buying junk is tough. That’s why it’s easier (and less profitable) to own a diversified basket of good companies. It’s easier on you emotionally, and it’s easier to pitch to clients. Over time, you’ll do just fine, but your results won’t be much different than what the overall S&P 500 does.
the key to success in stock market is focused, concentrated, experienced....like any business man would be.
How to identify and start a trend as KYY has done with Hengyuan, Carimin and Dayang.
Margin is just a tool.
A lot of people have made a lot of money from Hengyuan, Carimin and Dayang by jumping into the trend. ....and to jump off when satisfied and before the music stops.
For late comers too bad, better luck next time and come to the party early.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Posted by 3iii > 2018-08-12 08:05 | Report Abuse
My Golden Rule of Investing: Companies that grow revenues and earnings will see share prices grow over time.