Teen to another Teen , Your question , My answer .

Hi in another segment of my diary , i've turned legal age to go and purchase a bottle of red/white (Those who don't get this , wait for the answer in another 3 years, you'll understand , eventually . )


  All right , let's begin proper.



So in a Facebook post , i asked my friends what they would like to see me write about and Branson Lee said
"The different approaches you make before making a buy  the things you consider etc"


For starters , my approach or rather rationale for this way of me investing is simple. Don't pick or go and whack counters that you know that with your holding in it , you'll toss and turn around in bed , in my dialect , it's called "koon bway loh" , so for those that are thinking of doing this kind of move , think again




MAKE SURE YOU CAN SLEEP AT NIGHT , 

and SOUNDLY TOO!





Before i make any move , i'll do these 4 steps . 


1) Eyes open big big , legs don't shake.


 People may ask why look at the corporate structure ? The board ? The operations? The mode of biz , the industry they are in ? The equity structure ? Let me sum it up in this sentence , a sentence i heard when i was doing my second part-time job back in 2012 , 

"In order for (you) to suggest changes , you must know how the Managing Director is managing the firm , you must know who is the one in power and how that power is being used at his / her discretion" . 



An example of a good MD is Popiah King , and probably Sheng Siong's Management team as they know what the consumers,market and shareholder wants and they will try to align their strategies , corporate profile to portray that . So one word for them , 

赞!






2) Listen , don't open your mouth first. Learn to listen. This buy in is not a drag race!


Let me furnish you with a simple example. , it's Chinese New Year / Lunar new year , you're in a room with your aunties , your older cousin and older cousin's younger bro who is educated in finance. They are talking about balance sheets ,  NAV , asset values , trading volumes , moving averages , the only BS other balance sheet i know about is the garena game , blackshot. (minus the bull manure la)


Point in case being : Listen in on conversations and if you have a rebuttal to make anywhere , make sure that it is structured , coherent and that you're in the right state of mind , don't bother whether the fella on the receiving end is your cousin brother , uncle , auntie whatever. As long as you remember this they are also fellow investors . If you can see it this way , i'm definately sure , the convo will be a fruitful discussion .



3) READ , READ , and READ more 


"Mai Kan Cheong!" Investing is not a race

TRADING is . So if you're an investor, you definitely want to know where the heck your $$ is going to end up in and who it's gonna end up with. So read up , read up on the background , profile of the company / counter , who are its gatekeepers and who is in power , any current litigation cases? International Arbitration pending? Competitors who are also listed? If they have competitors (assuming not a niche counter) , COMPARE DATA ! See whose data is more sound , fundamentally , a company better have a good track record (I won't say spotless because in Biz , it has its ups and downs , don't expect everything to be in the black) . Then read up on industry news , go research on market trends towards this industry and consumer/customer sentiments towards this industry , is it a  sunset industry? Or is there untapped market potential that this counter is leveraging on ?


4) Everything also in moderation .


"Ho Jiak Bun Mai Jiak Ka Zhway" 

Even though my size doesn't exactly advocate moderation towards my intake of food , be SMART , don't whack all your plans by putting all your eggs in one basket , diversify !




No matter what your banker , auntie , uncle , financial adviser tells you about this counter , have a back up route , another counter or many many counters where you've already parked $ to cushion the impact .


REMEMBER : YOUR $ IS YOUR $ , not your uncle , auntie or cousin's . OK? 

I sincerely hope all of you will be able to increase the size of your golden egg :) Huat Ah!




Pics from google :)


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