Investment in Stocks

Archive for October, 2011

INVESTMENT 101 – Would you want to lose $20million a day?

October 31st, 2011 |

Author: sean

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The costs of grounding Qantas is A$20million a day. That is about $SGD26million a day.

1st Question: Would you like to lose $26million a day?

2nd Question: Would you want to own a business that loses $26million a day?

One of the criteria Value Investors look for in a business, is for a business that will not be easily crippled by its labor force. The airline business, unfortunately has a record of workers going on strike.

The key question you should ask yourself regarding the business you want to invest in is if the workers in the business becomes unhappy and want to bargain for more rights, does the business have to bend over to meet these bargains?

If a business is dependant on specialized workers that cannot be replaced easily, the business will have to meet the bargains. Airline businesses depend on pilots and specialized crew. If these workers stop working, it is difficult for the business to get these crew replaced in a short time.

Take a fast food restaurant as a comparison. If Mac Donald’s workers go on strike, will Mac Donald have to bend over and met the request of say, raising their salary?

Given the nature of the business, Mac can relatively easily, get another group of helpers to take over the beautifully systematized business.

All in all, as part of the Value Investing Academy community, we would have avoided the Qantas business all together as it does not passes through the criteria of having easily replaceable labor force.

To make sure you choose the right kinds of business, you need to have the right list of criterias to help you scan the businesses and make the right decision.

In our free workshop, we share the criteria and practice on real live examples. Come join us and you can pick up some gems too.

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

Posted in Investment in Stocks |

Tags: Cayden Chang, Competitive Advantage, competitors, customers, economic moat, educational workshop, finance, financial education, free investing workshop, great investors investing, investments investment, Liu Feng, looking in, looking out, low costs, low prices, money management, option, Options, options strategy, passive income, passive income streams, philosophy, product differentiation, quitting your job, Sean singapore, stock, stock investment, stock investments, stock market, stocks, sustainable competitive advantage, testimonial, training investment workshop, Uncategorized, Value Investing, value investing options strategy, VIOs, warren buffet, Warren Buffett, workshop investment |

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INVESTMENT 101 – Value Investing Video Channel

October 17th, 2011 |

Author: sean

What is the potential returns when you invest in your financial education?

The answer: Infinity.

Great news for all readers as we have launched our Value Investing 101 Channel

http://www.youtube.com/user/ValueInvesting101

There are great videos uploaded regarding the Value Investing.

Learn more about What stocks to Buy, When to Buy, When to Sell and how to create passive income via the stock market.

Also learn why Value Investing Academy is the 1st and Only Programme in Singapore to be reccommended by Warren Buffet Guru, Mary Buffett.

Do join our channel and facebookgroup (www.facebook.com/valueinvestingacademy) so that you can be fast on your way to becoming a successful value investors just like our community. And do come and join us for our Free Investing Workshop where we can get you started on your journey.

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 Buffet Way
http://www.investment-in-stocks.com, http://www.nlpinsingapore.com

Posted in Investment in Stocks |

Tags: Cayden Chang, Competitive Advantage, competitors, customers, economic moat, educational workshop, finance, financial education, free investing workshop, great investors investing, investments investment, Liu Feng, looking in, looking out, low costs, low prices, money management, option, Options, options strategy, passive income, passive income streams, philosophy, product differentiation, quitting your job, Sean singapore, stock, stock investment, stock investments, stock market, stocks, sustainable competitive advantage, testimonial, training investment workshop, Uncategorized, Value Investing, value investing options strategy, VIOs, warren buffet, Warren Buffett, workshop investment |

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INVESTMENT 101 – The 4 Phases to becoming a Successful Investor

October 4th, 2011 |

Author: sean

Most people want to make a fortune from the stock market but only a few are willing to go through what i call the 4 phases to becoming a Successful (and rich) Investor.

So what are the 4 phases?

The faster you understand and go through these phases, the faster you will see yourself become a successful investor.

1) Believing

The 1st first is to believe that it is possible to make profits from the stock market. When i was studying in school, my teacher told me that “Most People Cannot Beat the Market”. This made me believe that i am not able to do it.

It took me a couple of years before i met a friend who showed me that it was possible and that made me believe that it can be done.

My teacher was not wrong, “Most People” still cannot beat the market, and the reason is because most people did not complete the 4 phases. In fact, most people did not even go through the 2nd phase, which is Educating or Learning.

2) Educating

I was shocked to realise that most people in the stock market do not understand how it works. But this is actually a paradox, because if most people knows how the stock market work, it wouldn’t work the way it does.

The market is irrational and that is because most people in the stock market is irrational. The reason is because most people did not educate themselves to look at the stock market as it really is – a market that sells Business Ownership. Most people (including myself in the past), look at the market for patterns and trends and tried to “feel” its pulse. The fact is that many people tried to do that, but only few are consistently successful. Those successful ones claim to have a system, but interestingly, these systems do not seem duplicable. I am speaking from my own experience because i bought into many of the systems and found that the results had many assumptions and variables. Anyway, there are still some who are successful and that cannot be denied. But for one to be educated in a manner that is duplicable, i.e. produce equallu successful results, i found that the way is really to look at the market for what it is – a market for Business Ownership. Once you understand this and learn how to buy great businesses, your world of investing change permanently.

3) Practicing

I know some people who read great investing books and feel that they have become better investors. But did they? You only learn when you put what you learn into practice. Otherwise, it is only “head” knowledge. You should know by now that if learning and reading alone can make you a great investor, most PhDs will be multi millionaires, but in the end, it is those who take the most action (based on the right education), who receives results.

You got to keep at it. When i started practicing what i learnt, i sweated it out when i see my stocks

prices going up and down. My head told me that the value of my business is not affected by the price, but my heart did not listen.

This gave me some sleepless nights, until i reached the 4th stage…

4) Internalizing

This is the stage where i gain a sense of certainty. I realise that in the world of business, nothing is really certain and there is no “perfect” businesses, but there are plenty of great businesses. Thus, i just settle on buying great businesses that have done well for years and then i live on with my life while the business continues to do what it does – making the shareholder (me), rich and profitable in the process. I sleep well at night and receive my rewards for going through the 4 phases.

In our free workshop, we start our participants on the 4 phases and help them go through a condensed experience to reach stage 4 in a short time.

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