Investment In Stocks

In 1999, Warren Buffett openly said, “I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that.” In 2005, A University of Kansas student asked Buffett about this: “Question: According to a business week report published in 1999, you were quoted as saying: “It’s a huge structural advantage not to have a lot of money. I think I could make you 50% …

When choosing businesses to buy, one of the ratios we look at will be the Return on Equity. Return on Equity measures the rate of return on business owner’s interest or equity. Return on Equity =        Net Income Share Holder’s Equity Each time a business makes profits, it can use it in a few ways. Issue profits out as dividends Retain the profits which adds to the Shareholder’s Equity Reinvest …

I remember there was a speaker who said this on stage, “There are 3 types of people in the world. Those who can Count and those who cannot Count.” I think we Singaporeans are very fortunate to be able to count relatively effortlessly. Most of us probably have taken this for granted and although i am not very keen on commenting on the current educational system we have, I am …

Once, I watched this simple yet powerful video, “what the Wealthy Buys on Pay-day”. It is created by Tim Sales and it illustrates this wonderful concept of how to be Wealthy. It is not really the amount of income that a person makes which decides if this person becomes Wealthy, but rather, what he/she does with the income that comes in. In summary, 1) The poor buys “stuff”, things people …

Recently, one of the peers in Value Investing Academy shared this wonderful article written by Warren Buffett himself. What is important to note is that when he look at stocks, he looks at them as businesses. If you invest in a stock, why do you invest in it? Because you think the price will shoot up, or is it because you KNOW that it will do well? Do read what …