I am reading "Creating Wealth" by Robert Allen and the 1st page wrote about this message that I think is very true, yet most people don't see it as a problem in the present society. Quote Josh Billings "The trouble with people is not that they don't know, but they know so much that just ain't so."
In this age that we live in, information is "fast and furious". Information flows continuously and is available to anyone with a computer. The old school of thought often taught us to enrich our minds with more information. Yes, I do agree but when you do find information, please filter the good and bad information before depositing into your mind.
In terms of investments, a lot of people i know "invest" on the basis of heresay. They listen to their guru friends, listen to so-call stock experts on TV, newspapers and magazines on their tips to the next growth stock or a fund. To me, I do listen or read such reports, but with a lot of salt. I do agree with some experts when they say that if the news get printed or go on air, it's old news. Furthermore, one can also see that a lot of the experts and "investment houses" are just going with the flow of the market. When it's a bull market, just pick any stock and says it's good and more than likely, the price do go up. But once the price start to nosedive, these "experts" will suddenly change their tack and give all sorts of excuses.
We do live in the information age and due tot he massive inflow of information we receive every day, we are bias towards a certain direction, no matter if it's true of false. For example, for the 1st half of 2007, the construction sector here was a massive boom and the prices of all construction companies shot up to their highs. But if you do some simple calculations, the prices are unsustainable. Some stocks were trading at >100X P/E, when it should be <30X. But due to the positive inflow of information from all medias, this sector was the darling of everyone.
It is not what we do not know. On the contary, we do know a lot, sometimes too much. Most importantly, it is what we know that is not true or inaccurate. We base our decisions on what we know and if what we know is not true, we make the wrong decisions.
Think I really have to filter the information i get everyday.
Tuesday, July 8, 2008
Sunday, June 22, 2008
What to do with $4k?
Whoopie, I have just gotten my bonus and I should have $4k to invest.
After evaluating my choices, I decided to put this money into high yield stocks rather than speculative or growth stocks due to volality of the current market. Before I go into teh high yield stocks that I am eyeing on, I would just want to write about the 2 growth stocks which has reached my buying price. One is Contel and the other is UOL. Contel has been in my watchlist for a while and I have seen it going from 16c to the present 8c. It has also broke its 52 wks price of 8c but recovered to 8c. UOL has the backing of the Wee family and news that he bought a sustaintiate amount a couple months back at about $3.60 puts this stock into my watchlist. It has been see-sawing between the prices of $3.50 to $4. And 2 days ago, it broke my buying price of $3.50. I will monitor these 2 stocks further before i make a move.
For the high yield stocks, as you can read from my previous blog, I am holding 4 of them, of which 2 were bought using my CPF. One criteria for myself is to diversify the sectors. Currently, my four stocks are a) FSL, which is leasing ships, b) Cambridge, leasing warehouse and industrial properties, c) First Reits, which lease hospitals and homes in Indonesia, Spore and China, and lastly d) LMIR, leasing of malls in Indonesia. I am interested to get some Spore Reits but their yield is low as compared to those I am holding.
Out of the 4 stocks, I will not add to FSL as I think I have quite enough of cash tied to that. Cambridge is on the rage due to rumours of bigger Reits buying it over. I have very little First Reits and would like to up the amount and also to average down my buy price. LMIR has the lowest price of all the 4 stocks.
I feel that out of the 4 stocks, LMIR has the least potential as there isn't much activity about what they want to do. First Reits has expanded into Spore and China since IPO and I feel hospitality is a good business to be in. Cambridge has an advantage of getting bought over, so it has a short-mid term positiveness about the business. FSL has the most activities from its buying and leasing ships and furthermore, the price has appreciated and dividends is one of the highest.
After considerations, I will try to buy First Reits 1st. If I can't get at my preferred price, I will try Cambridge and lastly LMIR. Wish me luck!
After evaluating my choices, I decided to put this money into high yield stocks rather than speculative or growth stocks due to volality of the current market. Before I go into teh high yield stocks that I am eyeing on, I would just want to write about the 2 growth stocks which has reached my buying price. One is Contel and the other is UOL. Contel has been in my watchlist for a while and I have seen it going from 16c to the present 8c. It has also broke its 52 wks price of 8c but recovered to 8c. UOL has the backing of the Wee family and news that he bought a sustaintiate amount a couple months back at about $3.60 puts this stock into my watchlist. It has been see-sawing between the prices of $3.50 to $4. And 2 days ago, it broke my buying price of $3.50. I will monitor these 2 stocks further before i make a move.
For the high yield stocks, as you can read from my previous blog, I am holding 4 of them, of which 2 were bought using my CPF. One criteria for myself is to diversify the sectors. Currently, my four stocks are a) FSL, which is leasing ships, b) Cambridge, leasing warehouse and industrial properties, c) First Reits, which lease hospitals and homes in Indonesia, Spore and China, and lastly d) LMIR, leasing of malls in Indonesia. I am interested to get some Spore Reits but their yield is low as compared to those I am holding.
Out of the 4 stocks, I will not add to FSL as I think I have quite enough of cash tied to that. Cambridge is on the rage due to rumours of bigger Reits buying it over. I have very little First Reits and would like to up the amount and also to average down my buy price. LMIR has the lowest price of all the 4 stocks.
I feel that out of the 4 stocks, LMIR has the least potential as there isn't much activity about what they want to do. First Reits has expanded into Spore and China since IPO and I feel hospitality is a good business to be in. Cambridge has an advantage of getting bought over, so it has a short-mid term positiveness about the business. FSL has the most activities from its buying and leasing ships and furthermore, the price has appreciated and dividends is one of the highest.
After considerations, I will try to buy First Reits 1st. If I can't get at my preferred price, I will try Cambridge and lastly LMIR. Wish me luck!
Tuesday, June 17, 2008
My Buys and Sells for Last Half Year
I have not written in this blog for 9 full months and am pretty ashamed of it. The last 9 months was bad for my investments as the markets tanked. During this period of time, my main investments were:
1) Stocks.
A) Buying of warrants which I failed miserably. I started buying warrants using swing momentum and was gaining a bit, but when the markets start to get irrational, my winnings was wiped out in a blink of the eye and got into more losses. My weakness is that I often do not get out of a losing trade. Mainly trading in HSI warrants under Macquarie.
B) The other investments I have made, which I have gathered and will accumulate, are the high yield stocks. Mainly the reits or shipping trusts. Presently, I have First Reits, Lippo Maple Infrastructure Reits, Cambridge Industrial and First Shipping Lease Trust. My priority is to get the highest yielding stock. Currently, these stocks are giving at least 8%pa dividends. My aim is to accumulate enough to get some passive income from these stocks. Target is $10k/yr from dividends by 2015(7-8yrs).
2) Funds
The funds did badly over the whole period. I made the mistake of putting money into a China fund and it is now <70%.>30%. I have also supported a friend, who has just joined the insurance field by buying a couple of funds. I have not monitored the funds but I know it is losing money.
3) Lastly, over the last few months, I chanced upon an investment which is a bit controversial. It's basically a high yield deposit. As the "bank" does not have the reputation to guarantee the amount, it puts down a collateral to the depositor. I have tried with small amounts over the last few months and have received the interest and gotten back the principal.
I have a few stocks under my radar and is itching to buy but i am very tight in cash. Moreover, I heard that the market has a good possibility of going down again. Thus, I am staying put. When I have the money, I will put most of it in my yield stocks first before considering the others.
1) Stocks.
A) Buying of warrants which I failed miserably. I started buying warrants using swing momentum and was gaining a bit, but when the markets start to get irrational, my winnings was wiped out in a blink of the eye and got into more losses. My weakness is that I often do not get out of a losing trade. Mainly trading in HSI warrants under Macquarie.
B) The other investments I have made, which I have gathered and will accumulate, are the high yield stocks. Mainly the reits or shipping trusts. Presently, I have First Reits, Lippo Maple Infrastructure Reits, Cambridge Industrial and First Shipping Lease Trust. My priority is to get the highest yielding stock. Currently, these stocks are giving at least 8%pa dividends. My aim is to accumulate enough to get some passive income from these stocks. Target is $10k/yr from dividends by 2015(7-8yrs).
2) Funds
The funds did badly over the whole period. I made the mistake of putting money into a China fund and it is now <70%.>30%. I have also supported a friend, who has just joined the insurance field by buying a couple of funds. I have not monitored the funds but I know it is losing money.
3) Lastly, over the last few months, I chanced upon an investment which is a bit controversial. It's basically a high yield deposit. As the "bank" does not have the reputation to guarantee the amount, it puts down a collateral to the depositor. I have tried with small amounts over the last few months and have received the interest and gotten back the principal.
I have a few stocks under my radar and is itching to buy but i am very tight in cash. Moreover, I heard that the market has a good possibility of going down again. Thus, I am staying put. When I have the money, I will put most of it in my yield stocks first before considering the others.
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