Sunday, June 10, 2007

Lesson from Transmile's Accounting Scandal


You may notice i have created a link ' SS investing collection' at the right of my blog 3 weeks ago. This is where I uploaded & store the good articles, the paper cutting of my stock and the headline news.

I have just uploaded another good article written by Mr. Fong Si Ling today. For those who can't read Chinese, I summarise it as below:-

1) Being a retail investor in BSKL, we must analyse every incidence happening now, learn from mistake, try to reduce mistake.

2) Transmile's scandal teach us that being a retail investor, it's difficult to obtain all info or understand fully on what is happening on listed company. In Malaysia, it's not advisable to apply investment strategy that only focus on a few company.

3) It's also not advisable to diversify into too many company, Fong suggesting a RM1.0 mil portfolio, should invest in not less than 15 company.

4) Do not just rely on analyst recommendation, must read more company analysis report for references.

5) Do not buy stock at a price that already factor in the future projected earning. It's more pragmatic to buy at fair price or below fair price for high quality stock.

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