Friday, 28 August 2015

Price of Stocks Rise and Price of Stocks Falls

The recent slump of stocks have me rolling on the floor laughing. The fifth person have an article written on this. It was also quite fun seeing friends' post, that they have gone sick from the falling stock prices. Today, stocks have almost recovered from their earlier week fall. So what really happened? Absolutely nothing! 

Here, in Apexproperty, we believe in assets where you have full control and at least, you have control over its price to sell, its cash dividend you want, only then... its an investment, only then its a business. When you buy into a stock, say Starhub, yes, its a fantastic cashflow company with its own economic moats and all but when it comes to controlling the business when it goes down, say you have a brilliant idea to improve revenue, can you? Also, when the management wants to do something, i.e., issue rights, can you?

If you look at great blue chip companies such as telcos, and you say, hey, the NAV, the Valuation and the cashflow is such and such, therefore the investors are willing to trade security with lower yield and lower growth, which is fine. If you look at property as a business, you will find similar valuations and similar yield points. So, I would rate such 'small business' of a buy to let property to a huge business such as telcos with the exception, I have full control. I have no fear of stocks rise and stocks fall. (experienced investors, sorry, I don't mean you, you would continue to accumulate and while I can't)

Without subjecting myself to the market whims and fancy, I definitely sleep better and was having so much fun reading "predictions" from economists. 

Hey, fear sells... and stock market is a casino. Cheers!

Thursday, 13 August 2015

Where is Greece?

Market watch published an article on the 13th Aug which showed the world map by market capitalisation. 

Imagine how we used to be spooked by some place called Greece? Lets see if you can find Greece in the map. I can't. I also won't be bothered. When Greece disappears from the financial world map, nobody would even notice Greece has gone. I am certainly not bothered by the Greece Contagion. In fact, when Greece contagion came on, I was happy to see the stock price fall. This means the price is undervalued. Happy investing. 

When Iceland went bankrupt, no one actually cares. So today when China devalues the currency, what do you think will happen compared to when Malaysia devalues the currency? 

Understand the world market, which are the countries that will dent the world economy? when market misjudge, go in hard and make a killing.

A drug call hopium

I never believe in HOPE. What is it about hope that people hang on to and yet do not want to do anything about it? 

I've met many people who wished they can quit their job, retire comfortably, go on vacation, go volunteer at 3rd world, doing some good, yet when I ask them, how do they do it? they don't know. They just hope. Hooked on Hopium.

I think I've been able to influence some people as I spoke to Colin and Jon today. They are "suffering" from a disease called "flat account". In fact they had started to buy property and are saving every single penny for this purpose. Just like brave heart's rousing speech in front of the people of Scotland as they formed up to fight for freedom... "for freedom!". We too have sacrifices to be made in order to make that transition from current state to the state that you want. Do not get hooked on Hopium. People who are hooked on Hopium takes huge risk in not helping themselves, not saving, not investing and best of ALL... not educating themselves. 

Yes, taking he first step in investing is scary. It is a world full of scams and everyone you spoke to seems to be a scam artist. Keeping the money in the tin under the bed seems to be the safest; tuck yourself under the pillow and inhale Hopium away.... because its so scary outside. I fear for you. Your actions scare me. 

I met Minting, I think thats her name. She had the same mindset as me! fantastic! I think she will be a good investor. She had already worked on her balance transfer. I shared more with her so she may have a bigger market to play with. We discussed investment tips and who are the best investment guru. As I shared with her, still I am grateful to Marco Robinson and the Wealth Revolution Group that I build my knowledge and mindset with and I'm still recommending people to take his course. Caveat Emptor with any investment decision.