Investing Rule 1:
Never Lose Money.
Investing Rule 2:
Never forget rule number one.
I find this very interesting. Apparently, Mr Buffet, world second richest man, world most recognized investor, neber invest when he do not have confident of making profits. I always thought he made money from single BIG investments, but what he does is manage a balanced portfolio and generates only about 20 to 30% each time.
I also read up Adam Khoo's "Secrets of Self-Made Millionaire" and I agreed with him on the part on local stocks (SGX stocks). I quote,
" US stock market is so huge and there is so much money pouring into it, the market is a lot more efficient as compared to Asian markets in general. As a result, stock prices tend to follow stock earnings more closely.......In Asian and emerging markets, where the market is small and where prices depend a lot on foreign institutional investors, stock prices may not reflect the value and earnings of the company......there is not enough liquidity, or cash in the market."
Never Lose Money.
Investing Rule 2:
Never forget rule number one.
I find this very interesting. Apparently, Mr Buffet, world second richest man, world most recognized investor, neber invest when he do not have confident of making profits. I always thought he made money from single BIG investments, but what he does is manage a balanced portfolio and generates only about 20 to 30% each time.
I also read up Adam Khoo's "Secrets of Self-Made Millionaire" and I agreed with him on the part on local stocks (SGX stocks). I quote,
" US stock market is so huge and there is so much money pouring into it, the market is a lot more efficient as compared to Asian markets in general. As a result, stock prices tend to follow stock earnings more closely.......In Asian and emerging markets, where the market is small and where prices depend a lot on foreign institutional investors, stock prices may not reflect the value and earnings of the company......there is not enough liquidity, or cash in the market."
No comments:
Post a Comment