Friday, March 2, 2007

3 Reasons why I am still a novice investor

3 Reasons why I am still a novice investor

Dear friends,

This is the list of reason why I am still a novice investor.

Also, as you read down the list, you will discover why you should take a *huge* pinch of salt from my previous reports. If you already done so, I am gald that I am less guilty of the crime of misleading you.

3 Reasons why you should take a *huge* pinch of salt from my previous report:

1. I did not understand the business, in terms of:

  • (a) The nature of the business and how the company generate its profits
  • (b) Whether the company had a good history (at least 5 years) of generating profits and
  • (c) Whether the company had a sustainable competitive advantage (by earning power / monopoly / etc)

2. I only looked at the latest year's financials. This is really unacceptable now that I know a little more about value investing. At least 5 years of history should be studied!

3. I did not research enough and I did not know the management personally. It is most important toinvest only with honest management with high integrity.

Warm regards,
Fu Chin

Disclaimer: Completeness, accuracy and opinions based on information and comments mentioned via this website cannot be guaranteed. Investors should always conduct their own research before making investment decisions.

5 comments:

Aragorn said...

u said

(c) Whether the company had a sustainable competitive advantage (by earning power / monopoly / etc)

my comments

i like these companies but there aren't many..

some possible candidates are smrt(?), sph(?)...cityspring(?)...sbs transit(?)...

vested except for sph.

Anonymous said...

I wonder if there is any particular report in which we should have taken a *huge* pinch of salt? I have personally bought some Chuan Hup shares after reading your analysis... by the way, I am reading Rule#1 by Phil Town... and I think its a very easy book to digest in terms of concepts... website is http://www.ruleoneinvestor.com/

Anonymous said...
This comment has been removed by a blog administrator.
Fu Chin said...

Dear Anonymous,

My sincere apologies if you are caught off-guard, with the unpleasant downturn last week.

For your kind information, I am still holding on to my little bit of Chuan Hup Holdings, which I bought at $0.33. I may consider to sell it when there is any rebound, to raise my cash level. If there is no rebound, I will be happy to hold on to it and wait for its finance year end dividend payout (if any).

To answer your question, *ALL* my previous reports should be taken with a *HUGE* pinch for reasons as stated in the above report.

To all my blog readers, please do your own research and do not *just* rely on my words for any investment. I could be wrong in my views!

Happy investing.

Warm regards,
Fu Chin

Anonymous said...

well done , young man, you have come a long way , keep your focus , and i don't see why you are not a millionair in 10 years time... cheer keep going