Hi Friends, In the last article, we looked at investing from a business perspective. In this article, we will look at something called the “Circle of Competence”. The famous Warren Buffett wouldn’t go near a company with a ten-foot pole if he cannot understand what business it is involved in. For example, in 2000, he avoided technology stocks even though the stocks were going through the roof. He did not …
Read MoreSTOCK MARKET 102 – BUYING STOCKS FROM A BUSINESS PERSPECTIVE (Part 1 of 4)
Hi Friends, In the last four articles, we looked at what the stock market is, why companies list, how stocks trade in the stock market and why we need to invest in the first place. The next four articles, including today’s, will concentrate on looking at investing from a business perspective, among others. When you flip open the “Money” section of the Straits Times, you can find the previous day’s …
Read MoreSECRETS OF WARREN BUFFETT – WHAT IS VALUE INVESTING? PART 4 OF 4
Hi Friends We’re finally down to the last instalment of our 4-part miniseries on Value Investing and Warren Buffett. The word ‘value investing’ is probably most closely associated with Warren Buffett than just about any other investor in the world and that’s rightly so. After all, Buffett’s the fourth richest man in the world with a fortune worth about US$54.6b (as of March 2013) that was built almost solely on …
Read MoreSECRETS OF WARREN BUFFETT – WHAT IS VALUE INVESTING? PART 3 OF 4
Hi Friends We’re now in the third instalment of our 4-part miniseries on Warren Buffett and how his investing style came to be. For a brief recap, we shared how value investing got started with the writings and teachings of Benjamin Graham. Then, we told the story of how Buffett worked for Graham and met Walter Schloss. Schloss would eventually turn out to be a great investor himself while staying true …
Read MoreSTOCK MARKET 101 – BASICS OF THE STOCK MARKET (Part 4 of 4)
Hi Friends Last week we learnt how what we need to do before we can invest in the stock market. We also looked at how to read the market data. This week, we will look at why we need to invest in the first place. One of the major reasons to invest is due to inflation. According to Wikipedia, “inflation is a rise in the general level of prices …
Read MoreSTOCK MARKET 101 – BASICS OF THE STOCK MARKET (Part 3 of 4)
Hi Friends A few days ago, we looked at why stocks list in the first place through the IPO process. This week, we will delve into how stocks trade in the exchange. In case you have missed out our first 2 parts of our articles, you can access them here: 1) Part 1 of 4: https://www.investment-in-stocks.com/stock-market-101-basics-of-the-stock-market/ 2) Part 2 of 4: https://www.investment-in-stocks.com/stock-market-101-basics-of-the-stock-market-part-2-of-4/ Before we actually dive into that, we need to understand …
Read MoreSTOCK MARKET 101 – BASICS OF THE STOCK MARKET (Part 2 of 4)
Hi Friends Why do companies list? In the last article (https://www.investment-in-stocks.com/stock-market-101-basics-of-the-stock-market/), we looked at what the stock market is. In this article, we will look at why companies want to list in the first place. Suppose a local private company called MKI Pte Ltd is doing so well that it wants to expand its business beyond Singapore. However, it does not have much capital to expand. What can it do? …
Read More3 Warnings Investing In Your Own Industry!
One very important rule in investing is to only invest in something you understand! This allows us as investors to form a clearer and more accurate picture of the business’ future. So in some sense, when we look into our own “circle of competence”, we may feel that one area we should choose to invest in is where we are making money from. For e.g., if we are working in …
Read MoreSECRETS OF WARREN BUFFETT – WHAT IS VALUE INVESTING? (PART 2 OF 4 SERIES)
Hi Friends Last week (https://www.investment-in-stocks.com/whatisvalueinvestingpart1/), we shared some details about how value investing got started and introduced its intellectual patriarch, Benjamin Graham. Benjamin Graham Graham taught an investing course at Columbia Business School, which Warren Buffett attended. After Buffett’s graduation from Columbia, he eventually ended up working for Graham at his investment firm, the Graham-Newman Corporation (GNC). People familiar with the term value investing in modern times might associate it …
Read MoreSECRETS OF WARREN BUFFETT – WHAT IS VALUE INVESTING? (PART 1 OF 4 SERIES)
Dear Friends Many of you are probably familiar with the term value investing and see Warren Buffett as the poster boy for it. But did you know that value investing started out very differently from Buffett’s famous investments like See’s Candies, Coca-Cola and American Express? To know how value investing evolved, we have to start from its intellectual patriarch. Meet Benjamin Graham – the father of value investing. When Graham …
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