A. INVESTMENT FOR FIXED INCOME: US Savings Bonds (FDs or Amanah Sahams for Malaysians)
B. INVESTMENT FOR INCOME, MODERATE LONG-TERM APPRECIATION AND PROTECTION AGAINST INFLATION: (1) INVESTMENT FUNDS bought at reasonable price. (2) Diversified list of primary common stocks (BLUE CHIPS) bought at reasonable price.
C. INVESTMENT CHIEFLY FOR PROFIT: 4 approaches are opened to both the small and the large investors: (1) Representative common stocks bought when the MARKET level is clearly LOW. (2) GROWTH STOCKS, when these can be obtained at reasonable prices in relation to actual accomplishment – GROWTH INVESTING. (3) Purchase of securities selling well BELOW INTRINSIC VALUE – VALUE INVESTING. (4) Purchase of WELL-SECURED PRIVILEGED SENIOR ISSUES (bonds and preferred shares). (5) SPECIAL SITUATIONS: Mergers, arbitrages, cash pay-outs.
D. SPECULATION: (1) Buying stock in new or virtually new ventures (IPOs) . (2) TRADING in the market. (3) Purchase of "GROWTH STOCKS" at GENEROUS PRICES.
_______________
For DEFENSIVE INVESTORS: Portfolio includes A & B (A: Cash, FDs, Bonds B: Mutual funds, Blue chips)
For ENTERPRISING INVESTORS: Portfolio includes A & B & C (C: Buy in Low Market, Buy Growth stocks at fair value, Buy value stocks i.e. bargains, High grade bonds and preferred shares, Arbitrages)
For SPECULATORS: Portfolio includes D (Should set aside a sum for this separate from their money in investing.)
________________ ________________
Types of Investors
Graham felt that individual investors fell into two camps : "defensive" investors and "aggressive" or "enterprising" investors.
These two groups are distinguished not by the amount of risk they are willing to take, but rather by the amount of "intelligent effort" they are "willing and able to bring to bear on the task."
Young investors (his example--a sharp young executive interested in finance) who are as yet unfamiliar and inexperienced with investing, in the eyes of Benjamin Graham should be a defensive investor.
Given the young age of Jon Choivo, is he a defensive or aggressive investor? Having read his postings, he falls into the aggressive group. Will he be the next Warren Buffett? Who knows. He is knowledgeable and hardworking. Not so sure of his temperament in investing yet.
Good luck in this long journey of investing.
By the way, your friend, the active trader, who thinks he is financially free with $750,000 networth, please ask him to think again!
Dear Jon, No wonder people call you Jon (Long winded) for your age and intelligent people want you to take out 20% to do your intelligent speculating adventureous investment. Thank you
Hmm... Can't find one currently... At night time I play position trade based on TA and little FA only... After placed order then go to sleep... Wake up morning then see got hit my stop loss or my target profit... Hehe..
Really admire Jon. Broad reading resulting in wat so called 3-4 level thinking. U will be damn good as time goes on. And you willing to stick to your own judgement. That is valuable.
Hahahaha. Well good luck. I see also scared tbh hahaha. What do you use? Interactive brokers?
==== Alex™ Hmm... Can't find one currently... At night time I play position trade based on TA and little FA only... After placed order then go to sleep... Wake up morning then see got hit my stop loss or my target profit... Hehe.. 02/09/2018 09:17
IT IS VERY SIMPLE LOH....TO TRACK DISHONEST 3iii JUST MARK THESE SHARE PRICES & REVIEW IT AT THE END OF THE YR 2018 LOH...!!
Posted by stockraider > Sep 1, 2018 02:11 PM | Report Abuse X
these are past growth stock, now saturated loh....it is overvalue loh...if u buy 10 yrs ago ....then u get good return...but if u buy now u r looking for stagnation....bcos it is overvalue now loh...!!
The correct approach is start looking for new growth stock mah...!!
I will do this for 10 years, reading annual reports, tracking my returns, running my fund etc. If after 10 years, i cannot show to myself that i cant beat the market comfortably, to an extent where i can say i'm good.
I will close the fund, return all the money, and forget about being a fund manager.
I will move most of money to indexes, other than some where i think is really good companies.
And just spend the rest of time doing what i really enjoy. I prefer reading good books to annual reports. And i definitely do enjoy reading annual reports.
==== CharlesT Keep track on yr record for 3 to 5 years and then u evaluate yrself.
2017 less than 20% return (whats yr exact return? 15%-18%?) 2018 2019 2020
This could b more effective way to measure yr inv theory n method.
Abiility to write good book theories with good england may or maynot translate into good return...at the end of the still go back to the figures. 02/09/2018 11:58
The interesting thing about Parkson, is that this is a RM400 million company, handling roughly RM4 billion in revenue. That is insane, if they can get even 3% net profit margin, it would be incredible profits.
However, i think people are mistaken in how hard it is to get 3%. Amazon, in its entire history, i doubt, have made even USD10 billion for its retail division. It has absolutely decimated the entire industry and the margins of everyone, but it has not made much money from there. And this is a close to 1 trillion dollar company.
Parkson is cheap, quite cheap. But they are probably better net asset plays. If it turnarounds and become profitable, which i really don't know how, it will become a fantastic investment returns wise. But i find it really hard to see.
The right move for parkson now, is to basically liquidate everything that is no profitable and give it back via a dividend.
But this is william chengs baby, and something he has put his life into building, i dont think he will do that, but will try to keep it alive, to the monetary detriment of shareholders (including himself).
So i really really dont know what do to here. but i wouldnt mind buying 1-2% when its down to like 40 sen or something. But my cash not that much, so its needs to stay at that price for long time while i build up more important positions.
but the fact i am saying they are more important positions while, at the same time saying i will not put all my money in those positions, but put them in parkson, should be a warning that i am not fully logical and rational. And i do not truly understand all my investments.
== Outliar I thought you still had Parkson in your portfolio, still think its a decent turnaround and net asset play? 02/09/2018 11:34
I have different understanding from u. To me Investing means to bank on the company future. And there is no right or wrong in future because u can’t predict the future. Businesses will disrupt businesses its a never ending cycle. There is no business that will succeed 100% also. The max u can lose is only 100% but there is no limit to how much u will win. It’s infinity. So in context to your article, there is no sure win or so called safe investment. Time and correct projection of the future are the only essence in investing. The rest it’s not investing, it’s called gambling and speculating
I have different understanding from u. To me Investing means to bank on the company future. And there is no right or wrong in future because u can’t predict the future. Businesses will disrupt businesses its a never ending cycle. There is no business that will succeed 100% also. The max u can lose is only 100% but there is no limit to how much u will win. It’s infinity. So in context to your article, there is no sure win or so called safe investment. Time and correct projection of the future are the only essence in investing. The rest it’s not investing, it’s called gambling and speculating
1) stock market goes up forever 2) if only you decide it right, you'll get rewarded (against random walk theory)
truth
1) stock market goes up forever until this thesis is proven wrong (yet to be) 2) each investment decision is probabilistic in nature. If sure win, i also want
so pls follow alex do trading. Just ditch the investment. Why leh, because investment is so bored! hehe
Apple bled for decades before they explode due to their dominance in their innovation. If you are a shareholder how much do u think your investment amplifies. U can buy 100 start ups like apple 40 years ago. But if only one show the result like apple u are already a winner.
So what does this tell you? U need to have the ability to endure pain for a very long period of time and u need to trust Steve job and his team and their products. I know u will say Malaysia market is small not like us. But how do u know for a fact that no one company will make it internationally in the future? How can u be so sure
1) stock market goes up forever 2) if only you decide it right, you'll get rewarded (against random walk theory)
truth
1) stock market goes up forever until this thesis is proven wrong (yet to be) 2) each investment decision is probabilistic in nature. If sure win, i also want
so pls follow alex do trading. Just ditch the investment. Why leh, because investment is so bored! hehe
and yes, if steve job no succeed, we don't have success stories today to tell...
Posted by godhand > Sep 2, 2018 01:33 PM | Report Abuse Apple bled for decades before they explode due to their dominance in their innovation. If you are a shareholder how much do u think your investment amplifies. U can buy 100 start ups like apple 40 years ago. But if only one show the result like apple u are already a winner.
So what does this tell you? U need to have the ability to endure pain for a very long period of time and u need to trust Steve job and his team and their products. I know u will say Malaysia market is small not like us. But how do u know for a fact that no one company will make it internationally in the future? How can u be so sure
To me there’s a very fine line that distinguish speculation from investing and It’s trust. Why? Let’s say u know nothing about a company revenue in future all you know is that the management has the best committed young bloods selling a new service or products that’s wasn’t there before and trying to penetrate the market and u believe in what they do. It may sound like speculating because u don’t have the numbers. But this is what I call investing.
Quoted : "An adventurous investment, is where you are not sure of the value of what you’re buying, and thus do not know whether the price you paid is worth the money or not. However, you have a good feeling about the long term prospects of the company. And at that point in time, you might feel good enough about it to buy a certain amount of it."
If you think when sifus (not me ya) advised you to be more "adventurous" in stock investment, that means asking you to invest in stocks that "you are not sure of the value of what you're buying", you have total mis-conception. That's all I want to add. If u can't understand, u won't understand.
Quoted : "An adventurous investment, is where you are not sure of the value of what you’re buying, and thus do not know whether the price you paid is worth the money or not. However, you have a good feeling about the long term prospects of the company. And at that point in time, you might feel good enough about it to buy a certain amount of it."
If you think when sifus (not me ya) advised you to be more "adventurous" in stock investment, that means asking you to invest in stocks that "you are not sure of the value of what you're buying", you have total mis-conception. That's all I want to add. If u can't understand, u won't understand.
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Posted by 3iii > 2018-09-02 06:01 | Report Abuse
GAMBLING: represents the creation of risks not previously existing – e.g. race-track betting.