Why Do You Need To Become An Entrepreneur?

Paul the Octopus vs Warren Buffet

What lesson can we draw from Paul the Octopus and Mr Warren Buffett?

Read here - http://www.equitymaster.com/detail.asp?date=7%2F14%2F2010&story=3

Best Value Investing Book

Previously, I have mentioned about Why I choose Value Investing and I would like to recommend some books to you.



I have already read The Intelligent Investor and it's a wonderful read.

Take your time to brush up your value investing knowledge and get distinction from the books.

Happy reading!

Why I Choose Value Investing.

Have you ever hear people around you saying the followings:

"Whenever I buy a stock, the price drop".
"Better sell now if not the price will drop further"
"Wah, price keeping going up, I better buy".

Sound familiar? This usually from the mouth of a trader.

Traders base on technical analaysis where they look at chart and indicatiors.

My question is what does chart and indicators tells you? Does these tools provide information about the company stock you buying in? Do you know the value of the stock of the company?

I agree that trading can make quick bucks but it can costs you big time in just split seconds. Riches are made during the bull market, then what about the bear market?

The reason why I chose value investing is because I can make money in both bull and bear market.

For value investor, they make money when they buy, but for traders, they make money when they sell provide the market is up.

Value investing is based fundamental analysis whereby we look at the financial statements, the management and the business.

One important aspect of value investing is the principal of Instrinic Value and Margin of Safety. Once knowledge is acquired in these aspect, one will be able to invest confidently and safely.

Value investing takes time but it can generate consistent returns on a regular basis.

That is why I chose to be a Value Investor.

Selling My Liability Away - Car

As I go through my monthly household cum personal expenses, I realised my car expenses had eat into our savings.

Look at the sum:

Monthly Repayment $351.50
Petrol $ 60.00
Season Parking $ 63.70
Insurance $ 59.00
Servicing $ 25.00
Road tax $ 6.60
_________
$ 565.80
__________

Some may think the above figures is peanut but mine is an off peak car. I paid $565.80 just to drive on Saturday and Sunday. So I am paying these much to drive 8 times a month. Is this justifable?

I approached a car dealer and they gave an attractive offer. Now I am considering their offer.

Based on the above figures., I have a compelling reason to sell. However, I have other reasons not to sell i.e. Convenience, Comfort and Emergency. My friends did provide me some advice if I should sell. The convenience of bringing my kids for outing on weekend is the reason for stopping me to sell my car.

At this point of time, my car does not give me leverage and I am using earned income to pay the expenses of my car which is discouraged.

Having said that, my expenses will greatly reduced should I sell my car. The savings can form the cash flow for my investments.

It is decision day for me.

Pay Yourself First.

In order to reach finanical abundance, one must

1)Own a business
2)Invest

However not many people can own a business. So how do one generate cash to invest if they do not own a business and yet have little money?

The concept of paying yourself first is a powerful way to set aside money for investment. Most people will pay their bills first after they got their pay cheque. After paying their expenses, the balance will be their savings. Some do not even have any savings left.

You see, my money are stuck as a result of bad investments decision. There is possibility of not getting my money back.

Hence, I began to learn this menthod of compounding my money. Just Imagine saving $10 a day, I will save $300 a month and $3,600 in a year.

This is indeed a valuable lesson which is not highly regarded by people nowsaday.

So start paying yourself first!!

Result Don't Lie

When I was young, I heard many horror about stock market. I see people becoming bankrupt after losing heavily in stocks, I see marriage broken up and I heard people taking their own lives.

I have never never enter the stock market. My mindset has been conditioned to think that the stock market is a very scary place.

However, my blueprint of investing in stocks changed the day after I attended the Millionaire Investor Program (MIP).


4 months after I have graduated from the Millionaire Investor Program, I have made a paper profit of 30% Return Of Investment on one of the companies and 10% ROI in portfolio.

It truly show that with the right knowledge and methods learned, one can be sure that they can invest safely and with confidence.

Thank you, MIP.

No Enough Fund

I am facing a shortage of fund for investing. My money is struck with an investment company that refuse to pay me months after maturity. I am using my lawyer to sue them for non-payment.

It is painful not to be able to increase my stake or buy into new companies knowing that this is time to buy stocks. The shortage of fund lead me to think "How can I create fund for my investment?" I know I needed to have tools that create extra funding for me.

Seriously, being an employee will not provide the fund I want. Hence, one of my tools used by me now is being a partime property agent. However, there is no result so far.

My wife has also joined me in this journey. She has also attend a program to make money on the internet. I am looking forward to see result so that we extra funding will be available for our investment.

For now, I am focus on getting my money back from that company.

Exciting Times Ahead

We have come to the end of the first month 2010. How is everyone doing in their investment?

On paper, stocks price are on the up. However, as value investor, we do not focus on the movement of prices.

Just weeks ago, I added one more company to my portfolio. I was analysing another company when I decided to take a look into this particular stock.

After doing some homework, I bought in some shares. I saw the potential to grow further.

I am looking forward to collecting dividends when the companies made their announcement.

With the economy still recovering, this is the best time to buy stocks!!

I will certainly increase my stakes for my portfolio and also look into another company.

Have you made your move?

Investing in 2010

Goodbye 2009, Hello 2010.

So what is in store for investors in 2010?

The past one year saw the economy collapse to the worse since the Great Depression. Recovery took a blow when Dubai announced they are defaulting payment for 6 months.

In my opinion, the economy in 2010 will be slow to recover. However, there is light at the end of the tunnel for Singapore stocks. I foresee the property market, F&B and the transport market to grow with the opening of the IR. With the influx of foreigners coming to Singapore, our economy is expected to pick up.

I will be looking closely at the F&B and property related industry.

As for now, I have bought into 3 companines namely: Wellness, F&B and dry bulk carrier.

My target is to invest into 2 more companies.

Well, I am waiting for my first dividend.