If you’re new here, you may want to subscribe to my RSS feed. Thanks for visiting!Does the World’s Greatest Investor, Warren Buffett uses options as a way to invest? Isn’t options risky? Warren Buffett doesn’t take risk – his rule number one is “Never Lose Money”. I heard many arguments around this, so lets find out the facts. Through my research, there had several occasions where Warren Buffett uses options. Interestingly, he …
Read MoreAre You Buying Assets?
This may be just a little conufsing, because i am going to introduce you a new definition of “Asset”. In checking the financial statements of a company, we look to the balance sheet to find out what Assets the company owns. These assets can be factories, plants and equipments etc. i.e. these are things the company has that can be converted to some cash value. But today, I am going …
Read MoreThe Power of Fundamentals!
I love to play sports. Since secondary school, i represented my school for Badminton and i love it. When i first joined the team in Secondary 1, our coach spent the first 3 months teaching us the basic stances. The rest of the year was spent learning and polishing just 1 technique – lobbing. In badminton, lobbing means hitting the shuttle cock from our side of the court to the …
Read MorePrice is what you Pay, Value is what You Get!
I bought my house at about $320,000 about 4 years ago. It was a beautiful house with good location. $320,000 is the price i paid, the Value i get is a nice place to stay. Currently, the house is priced at about half a million. People are now willing to pay $500k for the house, but the value has not change. The size of the house has not gone bigger, …
Read MoreMaking a Killing In the Stock Market?
It is commonly said that the stock market is like a jungle of animals. There are the bulls describing situation when markets rises or even people who aims to make money when market rises. There are the bears, situations where market falls, or people who speculate the fall of the stocks to make profits. There are also the sheeps, people who follow the crowd. The saying goes that the bulls …
Read MoreLower Risk, Higher Returns?
Every since i was young, it is almost a truth that in order to have higher returns, we need to take higher risk… Even the textbooks teaches it. I am going to perform a myth buster right here. My argument would be that in order to have higher returns, you need higher financial intelligence. And in fact, when you have higher financial intelligence, you lower your risk. Let me give …
Read MoreOptions in Stock Investments?
Options in Stock Investments? I first learnt about options in my university in Business School. Options are used for hedging risk for investments traditionally, i.e. people use options to reduce their risk, so they pay others to take on their risks. Options are very like insurance. Stock owners wants people to insure them in event anything happens to their stock, e.g. stock price plunge, and they are willing to pay …
Read MorePhilosophy of Great Investors II
Philosophy of Great Investors II “Be fearful when others are greedy. Be greedy when others are fearful.”Warren Buffett. Chairman, Berkshire Hathaway Don’t Let Emotions Guide Your Investment Decisions Great investors throughout history have recognized the value of making decisions that may not feel good at the time but that will bear fruit over the long term–such as investing in areas of the market that investors are avoiding and avoiding …
Read MorePhilosophy of Great Investors
Philosophy of Great Investors “Individuals who cannot master their emotions are ill-suited to profit from the investment process.” Benjamin Graham. Father of Value Investing Avoid Self-Destructive Investor Behavior Chasing the hot-performing investment category or making major tweaks to your long-term investment plan can sabotage your ability to build wealth. Instead, work closely with your financial advisor to outline your long-term goals, develop a plan to achieve them and set the …
Read MoreWarren Buffett’s Investment Rules | Why I Simply Stick to Rule #1?
Warren Buffett’s 2 Rules in Investing Warren Buffett has 2 rules in Investing. Rule #1: Don’t lose money. Rule #2: Refer to Rule #1. Personally, I love these 2 rules because losing money is not only painful, but it decreases your chance of your financial dreams dramatically. Imagine you started with $50,000. With the right rate of compounding of say 20% and when you let it compound long enough, you …
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