“Patience is a product of confidence and trust.” — Peter Kaufman The only ally for long term investment is time. For an investment to grow over time, investors require patience. And in order to be patient, investors need to have confidence and trust the investment will grow over the long term. Malaysia Equity Market In […]
Category: Risk
How I Evaluate Unit Trust Fund Performance
For me, stock picking is hard. I do not have the time, patience, temperament, strategy, and required skills to value a business. Below are some of the common questions asked by investors while valuing a company. 1. Do I understand the business/company/industry? 2. Is the stock price cheap? 3. Even though it is cheap, is […]
Risk: Foreign Currency Effects on Foreign Investments Return
Below is my StashAway investment return on Friday, 23rd July 2021 denominated in US Dollars (USD). Total Investments (USD): $218.20Total Returns (USD) : -$2.61Current Value (USD) : $215.59 As shown above, I’m currently making a loss of -$2.61 🙁 but what about my returns denominated in Malaysian Ringgit (MYR)? Total Investments (MYR): RM901.00Total […]
How StashAway Diversify and Hedge Their Investments
I was first introduced to StashAway a few years ago by a friend residing in Singapore. I looked them up online and realized it was a “Robo-advisor” platform. Back then, I was skeptical of these Robo platforms. I remember reading a particular article that stated nearly 80% of “Robo investment” platforms in North America ended […]
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 […]
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 […]
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 […]
Gold Price Rises When There Is Blood In The Streets
So, the new year or the new decade started with a bang! On January 3rd, 2020, U.S. conducted a drone strike near Baghdad International Airport killing Qasem Soleimani, commander of Iranian Revolutionary Guards’ Quds Forces. Six days after, the tension between the US and Iran continues to rise, threatening a full-blown war between both nations. […]
Interest Rate: It Is In Your Interest To Know It
Not sure about you guys, but when I was growing up during my schooling days, I hardly hear my parents discussing the stock market. Occasionally they do speak about the property market but most of the time, it was either a conversation on fixed deposit (FD) or Employees Provident Fund (EPF). Now in my mid-30s, […]
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 […]