Category: Investment
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Why Do We Fail as an Investor?
I’ll start this post by admitting I have failed as an investor previously. I’m sure I will fail again in the future, but the difference is now I have a better coping mechanism when it comes to losses, especially unrealized losses. I guess I got better at managing my investment risks. Returns There was…
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Compounding, Time and Patience
I’ve just completed reading Atomic Habits written by James Clear and planning to re-read again. This is by far the best self-improvements book I have read. To summarize, it’s about how habits are cultivated from the compounding effect of minuscule actions. I highly recommend this book as the system shared by the author can be…
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Beginner’s Luck: My Fishing Experience
I’m not into fishing but years ago, I went for my first and last deep-sea fishing trip with my two angler friends. During the trip, we collectively caught many fishes and I manage to catch a barracuda. Apparently, it’s not easy to catch one but somehow, I manage to. I seriously thought to myself, what…
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Football Club Supporters: Emotional Long Term Investors
I’m a Liverpool Football Club (LFC) supporter since the early 90s. Non-LFC fans fear not, this post is not about the club or its history. It’s about how supporting your club emotionally over the years can be a poor trait when it comes to long term investing. Noise Supporting a football club during good days…
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Where is my Ferrari?
I’m sure you have come across this Ferrari joke before. Do read it again and have a good laugh. This joke is all about cutting expenses and investing the money to purchase some valuable item in the future. The typical, standard boring guideline anyone from the finance industry will talk about. On face value, the…
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Don’t Fall for One-Year Investment Return
Say you come across a person or an article indicating a particular investment has made a 10% return in the past year. Let’s try to be a bit more dramatic and say 40% return. I bet this will catch anybody’s attention. Our mind goes “This is a sure win. Everyone is investing in it and…
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Risk, can we get serious now and talk about it?
In my previous post, I shared a simple investment strategy. Personally, I prefer calling it Risk Management, the reason being an investment is all about the risk an investor willing to take to earn the desired return. The one problem I have noticed among investors, they spend most of their time talking about return and…
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All About The Standby, Standby, Standby
In this post, I will discuss the importance of “standby cash”. A simple but very important concept in the investment field. Before that, some observations from my previous post Discount Rate is not Markup Rate (Part 2). All four investors invested in the same stock, Company ABC. However, the rate of return for each investor…
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Discount Rate is not Markup Rate (Part 2)
In my previous blog post, I shared the below two points:– Differences between discount and markup rate – Markup rate is always higher than the discount rate How can we apply this knowledge in investing? Well, the goal of any investment is to earn a return or profit at a future date. It simply means…
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Discount Rate is not Markup Rate. Why?
Discount rate is not markup rate. To understand the difference between both rates, try answering the below two questions without thinking much about it. 1. What is the discount rate from RM6 to RM3?2. What is the markup rate from RM3 to RM6? I have asked these questions to my close friends and the majority…
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