Friday, September 22, 2006

Learning To Win

I am thanking these people which I learnt much from - Warren Buffet, Benjamin Graham, Peter Lynch, John Neff, Philip A. Fisher and a few others.

Actually from readings articles and books about them and devising ways to use their advices I've made some money for the past 6 years from the stock market. By the way that is much, much better than the 6 years before that.

While most people around me were talking about stock tips, if the market is going up, or whether the market is going down, chasing counters or declaring Kuala Lumpur Stock Exchange (KLSE) is the place to lose big money.

I slowly and steadily accumulate stocks which through my study, I believe has a good business potential. Definately I also sold some of them when the time arrive.

In 2000 when I started to use good investment techniques I was not that much knowledgeable compared to now, so I still haven't made it very good yet.

But when the market is good, my total stock investment value is reasonably good, and when the stock market is down. I'm not that worried, I still sleep soundly at night, because of the way I choose my stock, I'm not so worried about their price.

Just think like this, if you are living in tornado prone area, you can sleep well if you're inside an underground basement, but not if you are staying on the ground and only protected by layers of nailed together wood planks. You would be looking and looking and looking outside if the twisters is coming your way.

So, invest using those techniques told by the proven experts. I think in a few years after I have clear all the dogs in my portfolio I might be able to enjoy better return.

Last week I sold Air Asia shares and got some small profit. It is the most profitable and the biggest LCC in Asia, which models itself according to Ryanair in Europe.

In Malaysia we can either choose MAS (the national airline) or Air Asia. In my opinion, Air Asia future is better than MAS.

When you want to get a good company, look also into it's cost cutting efforts. It is one of the important yardsticks that must be use to become a well informed investor. Air Asia cut cost vigorously. Another company that comes to my mind is IOI Corp, the lowest cost palm oil producer in Malaysia. Yet another one is YTL Corp, it's CEO claimed to have built ERL (Express Rail Link) tracks connceting KLIA (one of Malaysia's International Airport)to KL Sentral (ERL's last station in Kuala Lumpur) in record time and at a record cost (lowest.)

Now back to those investment experts, when I go through the books about those men, their advises is simple and not hard to follow. Except for Philip Fisher "Scutlebutt" method which is not that easy to imitate.

Currently doing online business is a bit different, so many advices from so many expert and non-expert alike.

After a few months now, I realise that making lots of money through the net is not meant to be easy. It is hard work.

It is like saving money, you do it bit by bit, small amount at one time. When people talk about making tons of money in a short of time, gambler, gambling and those illegal money lender comes to my mind. In Malaysia we have a problem with illegal money lender.

They are called "Along" here. Meaning the oldest brother.

Don't get involve with Along, that is what I concluded after reading some of the stories about them and their borrower.

They are called the oldest brother, but they are not born in the same family with the borrower and have less mercy.

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