Category: Emotion
-
I Was Laid Off
In 2011, a few months after signing the sale and purchase agreement (S&P) for my new home, I remember watching the film “Company Men”. The film was about a shipping company going through a downsizing exercise and how it affected the employees. One of the lead characters in the film played by Ben Affleck was…
//
-
Consuming Financial News: Does it Really Matter for Long-Term Investing?
When I first started my investing journey, I figured keeping myself well informed on the daily financial news was a must. So naturally, I started reading The Edge Markets, The Star Business, and listening to BFM radio. However, I realized consuming too much financial news is bad or pretty much useless for long-term investing as…
//
-
When Math and Emotion Collide
In my previous Discount Rate is not Markup Rate post, I explained how the mark-up rate is always higher than the discount rate. This point is crucial when it comes to investing. Say a stock price has dropped in value from RM10 to RM5. If you were to purchase the stock at RM5, it simply…
//
-
Moratorium: Everything I’m Annoyed About It
Good and bad is relative. Since the future is unknown, no one knows how this moratorium will affect us. If I lose my income in these coming months, then this moratorium can be a blessing. However, if I manage to sustain my income, then I may have the “opportunity” to save money but will there…
//
-
Diversification: It Is Not A Competition
My Investment Analysis lecturer always repeats the following mantra. “When you speak about investment, concentrate more on risk and less on return.” The common mistake we tend to do is to seek for investment instruments with the highest return. We then proceed to invest in them without taking any consideration of the purpose or risk…
//
-
My Thoughts During House Arrest
It’s Movement Control Order (MCO) but it certainly feels like a house arrest, especially during the weekend. The furthest I can travel in a day is from my room to the kitchen. Most of my time is spent in my room, either facing the walls or my room fan. The longer I stare at them,…
//
-
Stockdale Paradox: Realist vs Optimist vs Pessimist
The law of karma is the law of cause and effect. Effect is determined by the nature of the cause. So the result of action is determined by the nature of action. Action is only an extension to the thought processes of the mind. Therefore action is determined by the nature of your thought. The…
//
-
How Significant is a 1% Difference in the Long Run?
Between one percent and ten percent gain, almost all of us will prefer a higher percentage gain in the shortest time possible. We are just tuned that way, always finding ways to cut corners. Just compare the following statements or headlines. Which one will entice your attention the most? a. Lose 10% body weight in…
//
-
Loss Aversion: The Emotional Impact Is Real
11th November 2019, around 2.10 AM Malaysia Time zone. It’s the 77th minute of the game. Liverpool FC (LFC) was leading by 3 goals but Manchester City (City) managed to sneak a goal in. For City to equalize they need to score extra two goals in the next 13 minutes plus stoppage time. Based on…
//
-
Objective: What’s The Point Without One?
I had the opportunity to study Strategic Management (SM) during my MBA course. The lecturer I had for the course was always a friendly person but I have seen him going nuts over some trivial matter. One of them is working on something without an objective. Mind you, this was a few years ago. Back…
//
Search
Categories
- Economics (13)
- Emotion (13)
- Estate Planning (1)
- Expenses (7)
- Insurance (4)
- Investment (32)
- Mindset (25)
- Risk (16)
- Savings (8)
- Uncategorized (1)