How true... When I first bought my index fund in 2009, it double within 1 year. I then bought a few s-chips like gaoxian, hu-an, qingmei, china fibre Tech, qingmei, fuxing and make good money out of them. (I sold gaoxian before the debacle happens), I thought I can be a trader, I am good, although I start making losses subsequently in s-chips in fuxing, qingmei Hu an, almost all counters that made money for me made me vomit back the money with the exception of gaoxian, because it was suspended LOL.
Even before 2009, it first invested in the stock market after 911. I also made good money after that, basically I dun even know what equity or receivables mean then, but I thought I was genius, untill the game become over when CAO happens and I made a net loss, as single loss that wipe out all my gains.
It took me 2 market cycles to make me realise that I am more silly than savvy.
I am still almost 100% vested, but I am fully aware that a black swan event or misreading o market can set me back for years. I intent to continue to accumulate regularly and use that as strategy to ride out the ups and downs o markets. Of course, I wouldn't know if my plan works until the next bear and bull cycle ... I believe we are still in bull market, although they are pockets of bears within the bull. That's why when I invest, I ask myself 2 foremost questions, does the company has a reasonable chance of surviving the next bear and will emerge out still competitive. U need more qualitative than quantatitive research to answer that question. Second qn, will I have confidence to buy more when a company tumbles 50%, if I have done due homework for qn1, then I need to search deep myself, what observer2 say physiological anaylsis, do I have the temperament and courage to see whatever money u throw at a company keep getting smaller, and results keep getting poorer and not fall into the pitfall of selling to cut loss first and then buy at a much cheaper price only to realise that the bottom is just round the corner.
Just to crystallize my thoughts. Sorry for my babbling here.
Greenrookie – Everyone make mistakes in investing, esp when starting off. In sports, one starts at amateur level, then to higher levels before competing at the top division ( ie martial arts, soccer, boxing etc.) But in the unforgiving stock market, one steps into top division straight away, namely against Mike Tyson. If you survived many rounds with Tyson, you are ready to make back your tuition fees as there are eager newbies lining up to step into the ring , hoping to be rich overnight.
Just observe the widening rich/poor gap since globalisation. Few decades ago, I haven’t even heard of a billionaire. IMHO many young educated investors fall into the S-Chip trap by just using FA or “value investing”. I have posted before, one shouldn’t analyse S-Chips like Blue Chips, as the former is unpredictable. I have some advantage in this minefield as I have run biz before and I appreciate how complex it is. The most impt is to assemble/maintain a talented Mgt Team. Most S-chips are run by dominant founder/CEO ( ie a one man show ) and they tend to make major decisions without consulting the Mgt Team, hence can make fatal mistakes.
I too am nearly fully vested as I agree that we are still in a bull phase as US recovers, but forget about buying multi baggers as IMHO, SGX is abt fully valued now. I don’t dollar average but stick to what I understand , wait for earnings growth and time will take care of the share price.
Buffett Quote: “ We don’t have to be smarter than the rest. We have to be more disciplined than the rest”
Newbiestock, Seems like your portfolio consist mostly eratat, since you hold so much regard for it. What other stocks are you holding?
It is very dangerous to put all your eggs into one basket, and it takes just one bad investment to wipe out all your profits....
newbiestock wrote: Ok. We don't talk abt 2009 anymore. I am not here to prove or boast anything.
I agree 2009 was a very gd year.
Investing is a lifelong journey. Tat why my nick has a newbie there.
BotakBrian wrote: Newbiestock, Seems like your portfolio consist mostly eratat, since you hold so much regard for it. What other stocks are you holding?
It is very dangerous to put all your eggs into one basket, and it takes just one bad investment to wipe out all your profits.
botak, besides Eratat, i still hold NeraTel and Cambridge.
NeraTel - bought middle of last year and still holding. No plans to sell nor add any yet.
Cambridge- bought and hold since late 2009.
As for rest of stocks, hv exited, including Lee Metal and Kingsmen Creative.
for neratel and cambridge, not much to really talk abt unlike Eratat... haha.
Kinda busy lately so not much time to trade or to research for new stocks to invest..
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