Investment in Stocks

Archive for August, 2011

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Warren Buffett is the richest investor in the world. You have probably heard of him, perhaps studied him or even dream of becoming as rich as him (or as wise as him).

But have you heard of the following:

1. Benjamin Graham

2. Philip Fisher

3. Charlie Munger

4. John Burr William

According to The Warren Buffett Way, these four figures influenced Buffett’s investing methodology and made him one of the richest man on earth. Let me just highlight the key principles these 4 pillars contributed to Buffett’s Value Investing.

1. Benjamin Graham:

Taught Buffett the concept of Mr Market, Margin of Safety, Buying $1 for 50cents.

2. Philip Fisher

Shared the idea of buying good company with earning capabilities

3. Charlie Munger

Buying good businesses at reasonable price is better than buying fair businesses at good price.

4. John Burr William

Discounted Dividend model – giving Buffett a way to valuate a business.

The great thing about Buffett is that he took what he learnt and APPLY them. He turned knowledge into ACTION. So what does this ACTION translate to? It translated to Billions of Dollars.

What he did was he had a base method known as Value Investing taught Benjamin Graham. He kept the basics and continued to improve his methodology. If you can do what he did, you can create the kind of results he created.

The question is… How?

Do you want to know the step by step way to apply Value Investing?

I will share with you how it is used today to create the results that Buffett created.

Click HERE to book a Free Investing Workshop.

To your dreams,

Sean Seah

Master Trainer (Value Investing Options Strategy)
Investment in Stocks Blog
Value Investing Academy – the Warren Buffett Way
http://www.investment-in-stocks.com, http://www.nlpinsingapore.com

Dear Friends

Great that you are reading this. Starting from this Part 1, I will share in a very practical way how you can GENERATE PASSIVE INCOME and be financially free.

I was training about 120 airforce personnels this afternoon and when I shared that I could stop work any time and still get paid, most of them stared blankly into space and one of them ask me “How is that possible?”.

Ask yourself these 2 questions – “Do you know what is the inflation rate in Singapore or in your own country?”, “What did you do with your savings after you get your pay-cheque?” & “What is your annual increment in your pay?”, “How much your money working for you in your bank?”

Got your answers? If not, let me share with you some of the data that I have obtained:

1. Singapore’s inflation rose unexpectedly to 5.4% y-o-y in July (vs. 5.2% in June) driven by costlier housing, transport and food.

2. For an average Singaporean, average annual increment is 3%

3. Bank generate annual interests of less than 1% Eg. Fixed Deposits.

Based on the above points, are you making enough money to pay for inflation? NO. If not, what happens to you and your money? The answers are brutal: 1) You become poorer each day because whatever you make or save is insufficient to cover the rose of goods, 2) Your money depreciates across time which means a dollar today will worth less a few years down the road.

Next question – “What are you going to do about it?” & if you are seriously about becoming FINANCIALLY FREE, “How?”

But wait …….. who the HECK IS CAYDEN and why should I be taking his ideas? Read about me:

1) My profile at http://www.mindkinesis.com/index.php?option=com_content&view=article&id=49&Itemid=66 & www.facebook.com/caydenchang.nlp

 2) I am the Founder of Value Investing Academy, the 1ST Value Investing Academy in Singapore with a 1ST Value Investing Programme that is Recommended by Mary Buffett, Internationally Acclaimed Author & Speaker of International Best Sellers such as “Buffettology”, “New Buffettology”, “Tao of Warren Buffett”, “Management Secrets of Warren Buffett”, etc.

3) I AM FINANCIALLY FREE!!!

CONVINCED? Are you READY? Across a few Blogs, I am going to share with you HOW YOU CAN DO IT TOO! 

I am going to share with you all my personal experiences and how you can apply in your real life and these are the SECRETS

SECRET #1 – Poor People Buy Liabilities, Rich People Buy Assets

Look at your what is left of your pay cheque every month. Do you noticed that most have been spent on things like car, mortgages, transport, food, clothing, education, family ….. and the list goes on. So what are things such as Cars, House, Boats, Planes, etc.? These are called LIABILITIES. What are liabilities? Liabilities are things that TAKE MONEY AWAY from your pocket. So is your house a Liability? Ask this question – Is the house paying you or are you paying for the house? You are paying for the house, it’s a Liability. So what makes a person poorer? Every time they get a pay cheque, they buy Liabilities. They more they buy Liabilities, the more the expenses that you have to pay and the poorer they get.

So what do the Rich do? They buy ASSETS. So what are assets. In simple terms, assets are things that PUT MONEY INTO your pocket. So what are examples of assets? I have listed some here:
1) Properties – if they give you some form of rental income
2) Business – Eg. Insurance, Real Estate, Direct Selling (provided you are at the upline), franchises, etc.
3) Books – royalties
4) Education – put to use what you have learnt
5) Stocks/Shares – Capital appreciation & dividends
… and so on.
There is no ‘which one is better?’. It all depends on what is your interest/passion and you are willing to learn that set of skills.

If you constantly and consistently purchase assets, you will have more and more CASH coming in and when these CASH or PASSIVE INCOME EXCEEDS your TOTAL EXPENSES, you are FINANCIALLY FREE or FINANCIALLY INDEPENDENT!

GOT IT?

So how do you get started to generate your FIRST SOURCE OF PASSIVE INCOME?

I am going to share more SECRETS in PART 2 of my BLOG. A SNEAK PREVIEW is available at www.facebook.com/valueinvestingacademy. “Like” us and get 2 Investment EBooks and Our Exclusive Interview with Mary Buffett.

Do come and join us for our free workshop show you how turn this time into the chance of a life time to be wealthy and financially free!

Click HERE to book a Free Investing Workshop.

Cayden Chang
Founder & Director, Mind Kinesis Management International
BSc(Hons), MSc
Lifelong Learner Award 2008 Honouree
Co-author, “Do You Have What It Takes To Be BOSS?”
Join our Fan Page on Facebook at www.facebook.com/valueinvestingacademy
www.nlpinsingapore.com

On 5th August, one of the Participants posted an article “Stocks You Can Now Buy Cheaper than Warren Buffett” on our facebook group.

People from Value Investing Academy went into a frenzy as the stock market takes a dip… not because we are fearful, but because we have been trained to move into the market with style in times of such opportunity and since 2008, this has got to be one of the best times.

We went in and bought stocks that are way below what they are worth. Due to depressing news, the market decided to sell great businesses at a discount. When was the last time you could buy Coke (KO) and Walmart (WMT) at only 12 times its earnings??

And really, what has the Government being in debt got to change the way people drink Coke and Buy discount items from a Super Mart??

The answer is that nothing has fundamentally changed for these businesses and the question is what are you going to do in face of such opportunities?

I know what Value Investing Academy Graduates did just these past few days as the market dips. We sang for joy and went in to buy businesses we know are way below market value.

The key difference between us and the rest is merely knowing how to look at stocks as businesses and knowing how to valuate them. These skills made many people ultra rich and is a simple method that allows wealth without worries.

Are you ready to learn these skills so that you can take opportunity of this chance of a lifetime?

Do come and join us for our free workshop show you how turn this time into the chance of a life time to be wealthy and financially free!

Click HERE to book a Free Investing Workshop.

To your dreams,

Sean Seah

Master Trainer (Value Investing Options Strategy)
Investment in Stocks Blog
Value Investing Academy – the Warren Buffett Way
http://www.investment-in-stocks.com, http://www.nlpinsingapore.com
http://www.mindkinesis.com

We may be soon facing a Global Recession! When US sneeze, the entire world catches a cold!!!!

My question for you is this: What is your response to the current economic climate?

I heard a lot of “Oh no!”, “This is BAD News!”, “I got to cut my losses fast!”

These are sounds of fear and panic.

For a trained Value Investor, we are not fearful of bad times. In fact, we can hear us shout, “Oh YES!”. We see opportunities! Quoting Warren Buffett, “Being greedy when others are fearful.”

And you can ask trained and seasoned Value Investors why we can be greedy and be in a celebratory mood when the rest of the world seemed to be in distress. The answer is simple, when the world is fearful, many asset prices goes down for sale. So this is the time when a Value Investor wakes up finding himself/herself in the middle of one of the greatest sale.

In our free workshops, I would always share in detail about why Price of a Stock has got very little to do with the Value of a stock in the short run. This is because the Market reacts to news in the short run, but in the longer run, the value of the stock has to be taken in account.

What about Analyst downgrades?

This serves another great opportunity for Value Investors. When they downgraded Amex, AIA, Goldmansach etc, these were the days when people lost the most money. The question is, is the money really lost? The answer is that it merely changed hands. From short term speculators to trained Value Investors.

During these downgrades are the times where many Trained Value Investors become rich in a very short time.

We cannot control nor predict the market, it may likely one of the worst financial situations. What we can control is our action, to take opportunity or not hide and wait until this golden opportunity passes by, and then you start complaining that you missed it.

What is your choice?

There is only one choice really, that is to be trained and make use of this golden time.

Do come and join us for our free workshop show you how turn this time into the chance of a life time to be wealthy and financially free!

Click HERE to book a Free Investing Workshop.

To your dreams,

Sean Seah

Master Trainer (Value Investing Options Strategy)
Investment in Stocks Blog
Value Investing Academy – the Warren Buffett Way
http://www.investment-in-stocks.com, http://www.nlpinsingapore.com