You know those articles that promote buy and hold strategies and say "If you hold X stock since inception, you would have made an XXX% gain!". Well, whenever I read those articles, I will silently curse them as they made it sound so easy. To me, Buy and Hold one of the hardest strategy to … Continue reading Buy and Hold – Hardest Strategy Ever
You would have read the news about incidents where regulators have to step in to investigate fishy business conducted by the managements. https://www.straitstimes.com/business/kimlys-top-executives-arrested-for-alleged-involvement-in-giving-false-or-misleading https://www.channelnewsasia.com/news/business/no-signboard-ceo-arrested-and-on-bail-amid-probe-into-share-11496908 https://www.businesstimes.com.sg/government-economy/allied-techs-missing-s33m-law-firm-says-partner-jeffrey-ong-may-have-ordered Now how are we able measure the quality of the people who manage the companies that we are putting our money in? Is there a way to spot the bad … Continue reading The Importance of Assessing Management Quality
One of the methods which I use to value to stock is the Benjamin Graham's formula from The Intelligent Investor. The original formula from Benjamin Graham's book, Security Analysis, is image from Wikipedia.com where V is the intrinsic value, EPS is the trailing 12 month EPS, 8.5 is the PE ratio of a stock with … Continue reading Graham’s PE Formula of Intrinsic Value
Another question people like to ask is not which stocks you should own but also how much you should allocate to your investments. This question is very important, especially today with a stock market that is trading near all-time highs at what appears to be disturbingly unsustainable valuations. As investors have very different goals and … Continue reading The 10% Rule
I thought I was investing when I dabbled in the forex markets. Back then I based my trading decisions on technical charts and interest rate decisions. However, during a discussion with my friends on our investments, they posed me a question on how do I derive the intrinsic value of a currency? I had totally … Continue reading The Road to Graham and Doddsville
