THE PROBLEM OF 3iii IS HE HAS TUNNEL VISION IN INVESTMENT (HE CANNOT SEE WHAT OTHERS SEE)

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2024-02-17 16:51 | Report Abuse

THE PROBLEM OF 3iii IS HE HAS TUNNEL VISION IN INVESTMENT (HE CANNOT SEE WHAT OTHERS SEE) https://klse.i3investor.com/web/blog/detail/www.eaglevisioninvest.com/2019-12-03-story242906-THE_PROBLEM_OF_3iii_IS_HE_HAS_TUNNEL_VISION_IN_INVESTMENT_HE_CANNOT_SEE_WHAT_OTHERS_SEE *Investing is simple but not easy. * It is important to have a strong philosophy, strategy and method. Stay discipline. *Stock Selection* Just follow the teachings of Charlie Munger and Warren Buffett. They teach their 4 tenets: 1. Know the business 2. The economic moat of the business 3. The integrity of the managers 4. Always buy with a margin of safety. Their focus is on great businesses with strong economic moats managed by honest managers bought at fair or undervalued prices. Their teaching is so simple, and they are surprised not many follow their investing style. Invest for the long term. Also reinvest all dividends and returns for the long term. Why long-term? The power of compounding is truly magical and this is especially so after a long period of investing. *Portfolio Management* Only invest the money that you do not need to use in the short term, e.g., the next 5 years. This is to avoid you having to sell to raise cash for emergency use at a time when the market prices were not favourable for you. You should have a sum of money set aside for such emergency use. Monitor the business of the companies you own. Keep track of their quarterly results. Read the news that are relevant to your companies. This will not take up a lot of your time. In general, for the majority of the well selected stocks, you can hold for the long term. There maybe an uncommon occasion when a particular stock need to be sold urgently due to permanent deterioration of its business. Sell early. Sometimes, a stock has risen to a very high price. Yes, you may wish to sell some or all of the stock. Yet, if you choose not to sell, it is also alright too, especially if you are holding the stock for the long term. You may find that in a few years, the stock may have risen to new high prices. Rarely, you have identified a fantastic new investment with very high upside and low downside relative to your present stocks in your portfolio and you may wish to sell to redeploy into this new investment. *Investing style of Peter Lynch* Yes, Peter Lynch is a great investor and teacher, and you can benefit from employing his methods too: cyclical plays, asset plays and turnarounds. GCB, Hai-O, APM, KAF, and others were among these types of stocks that have been rewarding in the past. You have to think differently from the crowd. Get in ahead of the smart investors (institutions) and the herd. By the time they spotted these and repricing comes around, you are ready to cash out. *How many stocks are investable for the long term in the stock market? * Around 2%. That is, in Bursas, just around 20 stocks. You just need 7 to 10 stocks in your portfolio and you are well diversified. Focus investing. Invest a meaningful amount into each stock. *Speculation / Intelligent speculation / Short term trading* For those who must play, ensure you set aside a sum of money separate from your long-term investing for the above purpose and most importantly, never add more money to this activity. This is to avoid permanent harm to your financial health. Majority of players historically lose money in these activities. *Stay within your circle of competence * Very important to know the company you invest into. Must know the boundary of your own circle of competence and never stray outside it. Keep educating and learning. *Know yourself* Know yourself. What is your financial capacity? What is your tolerance to risk? What is your investing time horizon? What are your investing objectives? *Keep your investing simple and safe (KISS). * You do not need to spend excessive amount of time analysing a company if you have a well defined philosophy, strategy and method. Use check lists. Organise the analysis of the stock in the format you like. Better still, seek out the sites where the information are available in the format you like: pay if you must. 20% of the time spent provides you 80% of the information on the company. Be disciplined. Be smart. *Be decisive* When the opportunity presents, and with your right preparations and knowledge, have the courage to act. Be decisive. Happy investing for the long term. Yes, you also need a bit of luck .. just a bit. 😊

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5 comment(s). Last comment by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ 2024-03-04 08:20

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

13,340 posts

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2024-02-18 09:17 | Report Abuse

THE PROBLEM OF 3iii IS HE HAS TUNNEL VISION IN INVESTMENT (HE CANNOT SEE WHAT OTHERS SEE)

https://myinvestingnotes.blogspot.com/2024/02/tunnel-vision-investing.html

xiaoeh

2,834 posts

Posted by xiaoeh > 2024-02-18 12:38 | Report Abuse

Good articles

stockraider

31,556 posts

Posted by stockraider > 2024-02-18 12:46 | Report Abuse

Do u all notice that 3iii like raider has been criticizing Icap TTB for lack of good performance return for the last 7 yrs ? Surprisingly the excuse given by TTB is exactly the same like what 3iii had given loh!

Quote by 3iii

"It was very interesting to see calvintaneng and his side-kick raider posting on my Petdag, Nestle and now DLady.Perhaps they should know that these long term stocks remain and are still multi-baggers in my portfolio."

3iii should focus on what have went wrong on Nestle & Dlady for the past 7 yrs, instead of making bad excuse & trying to divert attention from his failure by attacking sifu calvin loh!

In other words, 3iii should study & learn what have gone wrong in Nesle & Dlady and explain to us what action had been done to improve his investment return going fwd loh!

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 22 hours ago | Report Abuse

>>>
Posted by stockraider > 2 hours ago | Report Abuse

This useless 3iii has been targeting sifu calvin tan with his bias comment for a long time loh!
3iii should look into the mirror and reflect how are the performance of his top holding Dlady & Nestle since 2017, b4 making unfair & unjustify comment at sifu calvin loh!
>>>

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

13,340 posts

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2024-03-04 08:11 | Report Abuse

Selling is often a harder decision than buying
"If you have bought a good quality stock at bargain or reasonable price, you can often hold forever."

Investing is fun. For every rule, there is always an exception.

The main reasons for selling a stock are:

1. When the fundamental has deteriorated permanently, (Sell urgently)
2. When it is overpriced, whereby the upside gain will be unlikely or very small and the downside loss will be big or certain.

We shall examine reason No. 2 through the property market. The property market is also cyclical. There were periods of booms and dooms.


If you have a good piece of property that is always 100% tenanted and which gives you good consistent return (let's say 2x or 3x risk free FD rates), would you not hold this property forever? The answer is probably yes.

Then, when would you sell this property?

Note that the valuation of property, as with stocks, is both objective and subjective.

Would you sell when someone offered to buy at 500% above your perceived market price?

Probably yes, as this is obviously overpriced. You could cash out and probably easily re-employ the money to earn better returns in another property (or properties) or other assets.

Would you sell when someone offered to buy at 50% above your perceived market price?

Maybe yes or maybe no. You can offer your many reasons.

However, all these will be based on the perceived future returns you can hope to get from this property in the future. This is both objective based on past returns obtained and subjective and speculative on future returns.

However, unlike reason No.1 when you would need to sell urgently to another buyer to prevent sustaining a permanent loss, you need not sell just because someone offered to buy the property at high price. (However, there are also those who "flip properties" for their earnings; they will sell quickly for a quick profit.) You will not suffer a loss but only a diminished return at worse. You can take your time to work out the mathematics.

You maybe surprised that you may still achieve a return higher at a time in the near future by rejecting the present immediate gain based on the present high price offered.

Also, you would need to price in the lost opportunity cost when the property is sold at this price, even though it is 50% above the perceived normal market price. Could you buy a similar quality property with the same sustainable increasing income or return by offering the same price?



Similarly, the same line of thinking can be applied to your selling of shares.

When should you sell your shares?

Yes, definitely when the fundamentals have deteriorated permanently. The business has suffered for various reasons and going forward, the earnings will be permanently impaired and deteriorating.

Yes, when the price is very very overpriced. However, you need not sell your shares in good quality companies that you bought at fair or bargain price. As long as the fundamentals are strong and the business is adding value, selling now at a higher price may mean losing the return that you could have obtained in the future years from owning this stock and the opportunity cost of reinvesting the cash into another stock of similar quality and returns.

Once again, the importance of sound reasoning and doing the mathematics in making a decision whether to sell or not.

Is it not true, that the really big fortunes from common stocks have been garnered by those
who made a substantial commitment in theearly years of a company in whose future they had great confidence and
who held their original shares unwaveringly while they increased 10-fold or 100-fold or more in value?

The answer is "Yes."

ht tp://myinvestingnotes.blogspot.com/2012/07/my-18-points-guide-to-successfully.html



Additional notes:

Other reasons for selling a stock (or property) are:
To raise cash to reinvest into another asset with better return.
A certain stock (or property sector) may be over-represented in your portfolio due to recent rapid price rises and you need to reduce its weightage to reduce your risk of over-exposure in this single stock (or property sector).


Footnote:

This is a true story. A rich man was approached by a buyer to sell his property. A few neighbouring lots were sold for $1.6 m the last 2 years. What offer will ensure that you sell your property to me? Please let me know. The unwilling owner replied, "$5 million". There is a lesson here too. :-)

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

13,340 posts

Posted by Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥ > 2024-03-04 08:20 | Report Abuse

I have DLady and Nestle in my portfolio since 1993.

Over these long years, the prices of these 2 stocks fluctuated: nothing surprising here.

Over these long years, the prices of these stocks have increased multiple folds. These are facts.

Over these long years, there were periods when their share prices stagnated for many years too. These are facts.

Over these long years, there were periods when their share prices fell. Recently DLady's share price fell a lot. These are facts.

Stocks are safe for the long term, and very unsafe for tomorrow. If you think you can jump in and out, and know the time to come in and to get out, you are making a mistake.

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