In the book "common stocks, uncommon profits" ken fisher listed 15 things investors should look out fr to find the next big growth companies. He admits that is difficult to find companies that fulfilled all 15 conditions, and it might be alright for companies to miss a few of these criteria. Out of the 15, only 4-5 are number related and it talks about labor relations too. But I find it difficult to apply what is taught as it is difficult to assess other criteria if u do not have contacts to the management of suppliers, customers and competitors etc. but still a good read only to remind myself of the inadeaqecy of my research
The Federal Reserve QE3 policies each month have dumps S$105bB freshly printed money. BOJ would double it's monthly debt purchases to S$93B.
Just this week Dow Jones for the 1st time in history broke through the 15,000 level, while
S&P 500 Index shot past the psychologically important 1,600 barrier. Nikkei Index in the past 6 month has almost doubled. ST Index has breach the 3,400 resistance level, it's best performance in 5 years.
The present bull run is liquidity drive rather than fundamental drive. We have to be careful not be carry away by these bull markets.
I believe that for any investor, the most important knowledge is not Technical Analysis or Fundamental Analysis, it is self-knowledge. Know ourselves and we will know if a product is suitable for us. Know ourselves and we will know if a certain something is what we have been looking for. We could have all the financial knowledge in the world but not knowing ourselves, we could end up having sleepless nights as investors.
Why are investors in the stock market? To make money. Why do drivers go on the road? To get from point A to point B.
There are many types of investors in the stock market just like there are many types of drivers on the road. Each type would have a distinct behavior but they all share one primary reason for doing what they do.
Some drivers are speed demons and they also like weaving in and out of traffic. On more than one occasion, a speeding car which had overtaken the slower car but still waiting at the next traffic light a few minutes later. Of course, if the driver had not been stopped by the traffic light, he could have reached his destination a few minutes earlier. Just for a few minutes, why increase the risk of getting into an accident?
Looking For Multi-Bagger
Looking for the next big thing. If we could find a multi-bagger, we would be rewarded many times over. However, once invested, the waiting is the hardest.What if something were to go wrong? Being comfortable, therefore, would contribute to our success rate. Having predictable flow of passive income from my investments in selected S-REITs and some high yield stocks. So, it helps to reduce any feeling of anxiety if my spotting becomes spotty.
Hi Rock, is it Sun Tze , “ Know your enemy, know yourself ; in a hundred battles you will not be in peril”. This is somewhat similar to one of my fav. Buffet quotes “ We don’t have to be smarter than the rest, we need to be more disciplined than the rest ”, though my fav. is still “Rule no. 1, never lose money. Rule no. 2, never forget Rule no. 1 ”. I think playing speculative stocks is a bit like this old joke:
Two campers walking through the woods spotted a huge hungry looking bear charging at them. The first camper immediately opened his backpack, pulled out a pair of running shoes and started putting them on. The second camper looked at him and said, " You're crazy! You'll never outrun that bear! " The first camper replied. " I don’t have to. I only need to outrun you”.
As for multi-baggers, I’m afraid it’s very difficult to pick one now unless take risks on speculative pennies or S-Chips, which can be tricky as there are so many of them. Like buying 4D lol.
It is important to select carefully the shares we wish to buy. We should not be overly concerned that many markets are at an all-time high. However, we do need to be more discerning about the companies we invest in. We need to scrutinise our watch-list of shares even harder and understand the intrinsic value of the businesses we are interested in.
The key to successful investing is patience. It can be very tempting, especially in a secular bull market, to buy something (or indeed anything) simply because it is going up in price. But that is generally how short-term delight can end in long-term misery.
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