The Wealth Buy Assets!

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 …

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Buying Businesses!

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 …

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Value Investing and Options? What does Warren Buffett say?

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 does not trade options the typical way. Most people typically use options as a way to …

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Are 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 …

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The 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 …

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Price 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, …

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Options 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 …

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Philosophy 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 …

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Philosophy 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 …

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Warren 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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