Friday, December 29, 2006

My Investment Journey

Now is the end of year 2006, this is the right time to revisit my investment journey.

I started to buy shares in year 1993 when I was work in one of the securities company in KL. At that time I knew nothing about equity investment, During that period (1993-1996) I bought shares merely base on hearsay & tips. As a result; making losses, luckily only small amount.

In year 1996 - 2003, I have learn from my past mistake, therefore I bought shares in those Companies/ Industries that I knew, loss some, make some, fortunately I make some net gain. Only a small gain.

Feb 2004 is an important date in my investment journey, I have subscript my 1st I-Capital (print version), I also read some Investment Books. I study the new development & financial results of the Companies that I followed. As a results; I have paid off my housing loan and created my 1st investment fund from my investment gain.

Summaries below are my ' homework's' that make me succeed in my investment journey:-
(Hopeful can give some guard to the younger reader)

1) Subscript to I-Capital print version - I learn about the development in world market ( Tokyo, Hong Kong, Singapore & US), Stock analysis (In-depth) & new development in local market (Bursa Malaysia).

2) Acquire investment knowledge by READING - 'How to pick stock like Warren Buffett' by Timothy Vick, 'Security Analysis' & 'Intelligent Investor' by Benjamin Graham.

3) Study latest news & development in Companies by reading news - The Edge, The Star & Sin Chew daily.

4) Access to Internet website/blogger for information & opinion - Bursa malaysia website, Theedgedaily website, Malaysia-finance blogspot, Where is ze moola blogspot.

5) To learn from TA trader for some trading strategies - access to 'talk stock with doc' blogspot & 'trade bursa malaysia' blogspot. ( example: do not enter when price suddenly plunge)

6) Keep the right investment attitude - Be patient, do not get into speculative stock, limit your stock owned to not more than 10 counter, know your limit, do not over commit, no contra play. Only buy shares in companies/ industries that you know.


Saturday, December 23, 2006

Merry X'mas & Bargain Hunting

When KLCI is in the correction mode early this week, the Thailand's Capital Control give it a punch & push it downward to 1,050 point. Even now the CI has rebound to 1,075 but it is still vulnerable, any negative news will attract selling pressure and push down the CI again.

Now the volume has shrine, excitement has cooling down, the market price should reflect the stock real valuation again.

For those who believe in value investing, I suppose now is the best time for 'Bargain Hunting'.

Waiting for the market to go down further, fear & panic selling will make your shares selling at price lower than the actual value.
( I assume you know your shares valuation), then pick it up if it's cheap enough.

Merry X'mas & Happy Bargain Hunting !!!

Sunday, December 10, 2006

KLCI Due for Mild Correction, ARE U READY ?

KLCI hit 1,100 points last week, it has break 1000, 1025, 1060,1080 & 1,100 consecutively within 1 month period. Every one watch it, doubt it and now everyone is so excited about it. Now Genting Won the Sentosa Casino Has Enhance This Bullish Sentiment.

No one will deny KLCI is in a bull mkt, however it has reaching a point for Mild Correction. Are u ready for it ?
Are u ready to face it if Dow Jone drop 100 or even 200 point overnight!
It is interesting to see how our KLCI will react to this scenario.


Be prepare for it.
1) You can chose to do nothing if u are 'long term investor' & you are pretty sure that you shares are 'undervalue' and you will enjoy better return in the long term. or

2) if you are more towards speculative type of investor, then u should ask yourself one question : if mkt drop 50 points tomorrow, do I have extra cash to accumulate shares at lower price ?

It's advisable for u to take profits ( at higher price now), cash out 20%-35% of your investment fund, then wait for the mild correction of KLCI.
When Mkt dropped, then only come back to collect those undervalue stock at much lower price.