I am a subscriber of the financial newsletter "Strategic Investment" (Please visit www.agorafinancial.com). Truth is, I believe what these guys are writing about and the picture at the moment aint pretty at all. Basically, the subprime crisis is FAR from over and another MASSIVE wave of writedowns is expected to happen in early 2009 due to the adjustable-rate mortgages being reset.
What this effectively means things will remain ugly in the next 3 years at least. So what are you options?
SAVE A LOT OF CASH NOW!!!
When buying oppurtunities emerge in the 2nd half of 2009 & 2010 for stocks and real estate, grab them.
Thursday, July 24, 2008
WHY YOU ARE DUMB, SICK AND BROKE
I know, the title is not very edifying but hey, don't blame me because that is what Randy Gage called his book. Randy who?
"For more than 20 years, Randy Gage has been helping people transform self-limiting beliefs into self-fulfilling breakthroughs to achieve their dreams.
Randy Gage has been called “the Millionaire Messiah” because he believes that you are meant to be rich, and it is a sin to be poor! Through his prosperity workshops, books and CDs, he travels the world teaching that health, happiness, and wealth are possible for all who desire it. Randy reveals how to harness the power of thought and intention to manifest success in all areas of your life." (Taken from http://www.randygage.com/)
Some important points I would like to share from Randy's book:
7 LAWS THAT GOVERN PROSPERITY
1. The Vacuum Law - When you give, a vacuum is created and God being good in
nature will rush and fill this void with something good.
2. The Circulation Law - Hey, what happens to water that is stagnant? They breed
aedes mosquitoes and turn stale and smelly. Similarly, hoarding leads to
misery.
3. The Imaging Law - Picture yourself in an environment of abundance. Better still get a board and stick your goals (or Ferarri) on it. Look at it daily and it will
trigger the next rule.
4. The Law of Ideas - Making Money is just an Idea away. When your worldview
of money changes, you will discover how it is actually possible to make a lot of
money with little or no money down.
5. The Law of Reciprocity - If you lovingly give your wife a shoulder rub, do you
think she will do the same for you? Similarly, if you are a baker and give free
freshly baked muffins to the accountant next door, do you think he will do your
books for a big discount (better still for free with tax planning thrown in).
6. The Law of Tithing - 10% of all you earn is designated for God or if you don't
believe in God (email me and tell me why...), charitable organisations.
7. The Law of Forgiveness - No forgiveness leads to bitterness which saps your
energy to be productive in life. Life on earth is far too short to remain angry
with somebody. Make peace NOW and move on. Once that is done, cultivate a
cheerful and joyful spirit. Money ideas WILL come your way.
"For more than 20 years, Randy Gage has been helping people transform self-limiting beliefs into self-fulfilling breakthroughs to achieve their dreams.
Randy Gage has been called “the Millionaire Messiah” because he believes that you are meant to be rich, and it is a sin to be poor! Through his prosperity workshops, books and CDs, he travels the world teaching that health, happiness, and wealth are possible for all who desire it. Randy reveals how to harness the power of thought and intention to manifest success in all areas of your life." (Taken from http://www.randygage.com/)
Some important points I would like to share from Randy's book:
7 LAWS THAT GOVERN PROSPERITY
1. The Vacuum Law - When you give, a vacuum is created and God being good in
nature will rush and fill this void with something good.
2. The Circulation Law - Hey, what happens to water that is stagnant? They breed
aedes mosquitoes and turn stale and smelly. Similarly, hoarding leads to
misery.
3. The Imaging Law - Picture yourself in an environment of abundance. Better still get a board and stick your goals (or Ferarri) on it. Look at it daily and it will
trigger the next rule.
4. The Law of Ideas - Making Money is just an Idea away. When your worldview
of money changes, you will discover how it is actually possible to make a lot of
money with little or no money down.
5. The Law of Reciprocity - If you lovingly give your wife a shoulder rub, do you
think she will do the same for you? Similarly, if you are a baker and give free
freshly baked muffins to the accountant next door, do you think he will do your
books for a big discount (better still for free with tax planning thrown in).
6. The Law of Tithing - 10% of all you earn is designated for God or if you don't
believe in God (email me and tell me why...), charitable organisations.
7. The Law of Forgiveness - No forgiveness leads to bitterness which saps your
energy to be productive in life. Life on earth is far too short to remain angry
with somebody. Make peace NOW and move on. Once that is done, cultivate a
cheerful and joyful spirit. Money ideas WILL come your way.
Monday, April 21, 2008
Invest in Overseas Stocks
Morning Investors!
My humble apologies if I have not been updating my blog for some time. Just settled into my new job.
Today, I would like to share about my thoughts of investing in overseas stocks. Personally, I think Malaysian Companies do not have the Economic Moat some of the foreigners have. Investing in the KLSE alone does not give you adequate diversification for your portfolio.
2 stocks I am eyeing at the moment is Bank of China listed on the Hong Kong Stock Exchange and ComfortDelGro listed on the Singapore Stock Exchange. BOC is the 3rd largest bank in China while ComfortDelGro is the 2nd larget transportation company in the world. Both are trading at a PE of around 15 which is reasonable taking into consideration their tremendous earnings potential. As a margin of safety, I would only buy these 2 stocks when the PE drops to 12.
If you look at the Economic Moat of BOC and ComfortDelGro it makes you think that our Malaysian Companies are rather small in size in comparison with these guys.
If you really need to invest in Malaysian stocks, some companies worth looking into are:
1. KLK - Reliable as ever
2. Batu Kawan - ditto -
3. IOI Corp - ambitious
4. Public Bank - Good dividend yields of late
5. Maybank - ??
6. YTL Corp - Well run
7. YTL Power - Builds shareholder wealth as well as power stations
My humble apologies if I have not been updating my blog for some time. Just settled into my new job.
Today, I would like to share about my thoughts of investing in overseas stocks. Personally, I think Malaysian Companies do not have the Economic Moat some of the foreigners have. Investing in the KLSE alone does not give you adequate diversification for your portfolio.
2 stocks I am eyeing at the moment is Bank of China listed on the Hong Kong Stock Exchange and ComfortDelGro listed on the Singapore Stock Exchange. BOC is the 3rd largest bank in China while ComfortDelGro is the 2nd larget transportation company in the world. Both are trading at a PE of around 15 which is reasonable taking into consideration their tremendous earnings potential. As a margin of safety, I would only buy these 2 stocks when the PE drops to 12.
If you look at the Economic Moat of BOC and ComfortDelGro it makes you think that our Malaysian Companies are rather small in size in comparison with these guys.
If you really need to invest in Malaysian stocks, some companies worth looking into are:
1. KLK - Reliable as ever
2. Batu Kawan - ditto -
3. IOI Corp - ambitious
4. Public Bank - Good dividend yields of late
5. Maybank - ??
6. YTL Corp - Well run
7. YTL Power - Builds shareholder wealth as well as power stations
Wednesday, March 19, 2008
Stock Basics (Part 1)
In my opinion, women should be better stock buyers. Why? They seem to know a good deal when they see one! Take a look at what they do when you visit Tesco the next time. See how they make a beeline for the weekly promotional brochure on cheapies. E.g. Maggi Tomato sauce at RM1.90.
Jokes aside, buying stocks is all about buying a great company at a good price. Benjamin Graham wrote at length about this concept of "value investing" in his book, "The Intelligent Investor". Some other golden nuggets worth mentioning from this book are:
1. Are you an investor or speculator? Investors are in it for the long haul whereas the speculator
is in it for the quick buck. Odds are the long term investor will amass great wealth while
the speculator will end up on the losing end.
2. Mr. Market.
This refers to the prices of stocks being traded. Some go into panic selling mode when share
prices take a tumble while others become overly exuberant and buy more when share prices
are rising through the roof. The intelligent investor refuses to be swayed by Mr. Market and
makes rational decisions on the buying & selling of stocks. Basically, be very greedy when
others are fearful and be fearful when others are greedy.
3. Margin of safety.
Always add in a safety margin after you have worked out the fair valuation of a stock. Eg.
based on your analysis of Company X, the fair price to pay for a share is RM3.00. Margin of
safety at 15% (of RM3.00) means if Company X hits RM2.55 per share, you pounce.
Jokes aside, buying stocks is all about buying a great company at a good price. Benjamin Graham wrote at length about this concept of "value investing" in his book, "The Intelligent Investor". Some other golden nuggets worth mentioning from this book are:
1. Are you an investor or speculator? Investors are in it for the long haul whereas the speculator
is in it for the quick buck. Odds are the long term investor will amass great wealth while
the speculator will end up on the losing end.
2. Mr. Market.
This refers to the prices of stocks being traded. Some go into panic selling mode when share
prices take a tumble while others become overly exuberant and buy more when share prices
are rising through the roof. The intelligent investor refuses to be swayed by Mr. Market and
makes rational decisions on the buying & selling of stocks. Basically, be very greedy when
others are fearful and be fearful when others are greedy.
3. Margin of safety.
Always add in a safety margin after you have worked out the fair valuation of a stock. Eg.
based on your analysis of Company X, the fair price to pay for a share is RM3.00. Margin of
safety at 15% (of RM3.00) means if Company X hits RM2.55 per share, you pounce.
Wednesday, March 12, 2008
Getting out of the Rat Race (Part 2)
Further to my jottings yesterday, I have two more points to add:
1. Work for Money vs. Asking Money to Work for You
The reason most of us wake up every morning to brave traffic jams getting to jobs we barely like is bacause we are working for money. Let us renew our mindset and start thinking how to put the money we have earned to work for us either through investments or our own businesses. Again resist the mentality to earn more so that you can spend more. The opposite should be true, earn more, save more and invest more.
2. Mind your own business.
I am employed as an Internal Audit Manager and this is my PROFESSION. What is my business than? For me its managing my stock portfolio.
The job we cling on to is our profession but the income from our profession must flow into our "business".
Our business must ultimately be able to generate a passive income. E.g. stocks gives you dividends, apartments gives you rental income and a car wash gives you cash collections.
1. Work for Money vs. Asking Money to Work for You
The reason most of us wake up every morning to brave traffic jams getting to jobs we barely like is bacause we are working for money. Let us renew our mindset and start thinking how to put the money we have earned to work for us either through investments or our own businesses. Again resist the mentality to earn more so that you can spend more. The opposite should be true, earn more, save more and invest more.
2. Mind your own business.
I am employed as an Internal Audit Manager and this is my PROFESSION. What is my business than? For me its managing my stock portfolio.
The job we cling on to is our profession but the income from our profession must flow into our "business".
Our business must ultimately be able to generate a passive income. E.g. stocks gives you dividends, apartments gives you rental income and a car wash gives you cash collections.
Tuesday, March 11, 2008
Getting out of the Rat Race (Part 1)
"Rich Dad, Poor Dad" by Robert Kiyosaki & Sharon Lechter is a powerful book dispensing advice on how to get out of the rat race. Read it and be empowered to make changes to how you manage your finances.
My summary of the key principles I took away from this book:
1. Save as much you can.
2. With your savings, purchase ASSETS that will generate income for you. Eg. An apartment
costing RM120,000 that will generate monthly rental income of RM1,000.
3. Avoid the temptation to blow your savings on liabilities. Eg. of liabilities are: a brand new car,
stereo system or a state of the art hand phone.
4. Overcome the fear of losing money.
5. Be generous to those around you, especially the poor and needy.
My summary of the key principles I took away from this book:
1. Save as much you can.
2. With your savings, purchase ASSETS that will generate income for you. Eg. An apartment
costing RM120,000 that will generate monthly rental income of RM1,000.
3. Avoid the temptation to blow your savings on liabilities. Eg. of liabilities are: a brand new car,
stereo system or a state of the art hand phone.
4. Overcome the fear of losing money.
5. Be generous to those around you, especially the poor and needy.
Monday, March 10, 2008
BUY
KLSE has activated the circuit breaker in efforts to curb panic selling on the market. (The ruling coalition has lost their 2/3 majority in Parliament - following General Elections held on 8 March 2008). Market will resume trading at 3.58pm. Time to sell??? Of course NOT. Time to buy. This the the time value investors come awake and start picking up their favourite stocks deemed to be trading below their actual worth. Its like buying an Brand New S Class Mercedes at Proton Prices. Join me at 3.58pm...
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