Millionaire Investing program

[Yellowfin]

dont troll lah. I find within myself so long liao also cannot find

I don't troll.

I am a newbie in investing so I just try to share my limited knowledge with the fellows members here which I have learn a lot from them.

 

[wahkao3]

going for this course is just like sending yr kids to go for adam khoo "motivation" course

go for those that teach methodology. Not those that do motivation mah

 

[wahkao3]

Time = money
They (ken and gang) are targeting people who know nuts or at most very little about investing.

They are prescribing like what others have said Warren buffet style of investment - value investing.

If you already know quite a fair bit about investment then I would say this is not for you.

If you have very little knowledge, or have been losing money doing trading - then this may be the course for you

The gist of the course is on how to manage your money, generating cash flow and how to research/spot companies. Sounds simple but something many people neglect.

very true. knowing the method is 1 thing. Executing is another

We all know that buying companies with good financials is 1 thing.
But most ppl are too lazy to even pick up the annual report to read. Instead, they prefer to rely on analyst hot tips.

 

[kelvin_99]

Easier said than done.
With so much information out there, you also dunno which 1 really works.

pay someone to spoonfeed teach the right stuff easier mah.

Yes..you are 100% right -- it is easier said than done. Otherwise, the unemployment problem in SGP would be easily solved -- everyone becomes online trader/investor. What I m saying is that it is do-able...if one has the keen interest and perseverance.

On your other point - Even if you are willing to pay, you have to be able to find the RIGHT someone willing to teach the RIGHT stuff. And even if you could find that "sifu", it is going to cost a bomb unless you develop some blood/symbiotic relationship with him for him to share trade secrets. (I assume when you say "RIGHT" stuff, you are referring to coming up plans/strategies that will give u the edge to make $)

But realistically for most of us, so long as we have some basic financial knowledge, and given the limited resource (i.e. $) a practical solution is D-I-Y

 

[direbmem]

Thanks direbmem.
So is that it include in the capital appreciation la.

no, excluding. for eg. suntec gave around 9c per share for 2013, so the yield on my 1 lot of ipo suntec is 9% per year (for 2013). now suntec 1.8 is another 80% gain wor...but 1 lot only lol.
if they bought suntec during the crisis when it was lelong for 80c, think yield on cost >10% is possible...

 

[The_Davis]

very true. knowing the method is 1 thing. Executing is another

We all know that buying companies with good financials is 1 thing.
But most ppl are too lazy to even pick up the annual report to read. Instead, they prefer to rely on analyst hot tips.

oh ya, they do teach you how to read the annual reports

there are "hands on" for this course lah~

and "simulated" trading games

 

[The_Davis]

Yes..you are 100% right -- it is easier said than done. Otherwise, the unemployment problem in SGP would be easily solved -- everyone becomes online trader/investor. What I m saying is that it is do-able...if one has the keen interest and perseverance.

On your other point - Even if you are willing to pay, you have to be able to find the RIGHT someone willing to teach the RIGHT stuff. And even if you could find that "sifu", it is going to cost a bomb unless you develop some blood/symbiotic relationship with him for him to share trade secrets. (I assume when you say "RIGHT" stuff, you are referring to coming up plans/strategies that will give u the edge to make $)

But realistically for most of us, so long as we have some basic financial knowledge, and given the limited resource (i.e. $) a practical solution is D-I-Y

it's a zero sum game you win, means someone lose

 

[Dyhalt]

If you are trader trading for cash returns, strategies & technical analysis with that bit of talented spark in you determine whether you will be successful or not.

If you are investing, especially if you want to invest successfully over long term, you will have to understand the company much deeper than just PE/ ROE/ div yield or whatever that is put on the financial report. My personal experience is every serious investor can understand whats written in the annual report with a little more effort, but it took an expert to notice the things that have been deliberately left out of the report.

A lot of the data can be crafted to look better due to flaws in accounting rules. For example a project took 6 months to complete in phases, do you count the project's revenue from the day it started? or the day it ends? or the day you receive the money? or a fraction at a time depending on % completion? or the day it went operational without further obligation from the company ? In short invest heavily only in things you understand.

cheers

 

[kelvin_99]

it's a zero sum game you win, means someone lose

My 2 cents

It depends on how you look at the market. If looking just at the stock market, assuming the general market prices (e.g. using DJIA or STI as proxy) continue to rise (whether due to real economic expansion or QE), it would not be a zero sum game as long as you hold and sell only when price rises.

You would lose only if you sold when the price retracts.

Historically, the market is known to continue to rise despite the bust that accompany the boom cycles. And this is the reason why everyone should remain invested in the stock market in good counters. Even for newbies, if you do not know much about stocks, remaining invested in stock ETFs like STI would help you make money.

In summary, theoretically to make $ with little or no effort -- remain invested in the stock market in the long term. This is the simplest and most effective strategy which I believe many do not adopt probably because it sounds too simple. For one, you will definitely not hear this from your consultants sellings their fund or ILP products offering paltry returns.

 

[frenchbriefs]

basically what u saying is financial reports are useless,trade only when u have insider information,like when u know temasek holdings is going to inject a billion dollar cash into smrt or renationalise/privatise their assets,or when they going to buy olam for 4.3 billion.

If you are trader trading for cash returns, strategies & technical analysis with that bit of talented spark in you determine whether you will be successful or not.

If you are investing, especially if you want to invest successfully over long term, you will have to understand the company much deeper than just PE/ ROE/ div yield or whatever that is put on the financial report. My personal experience is every serious investor can understand whats written in the annual report with a little more effort, but it took an expert to notice the things that have been deliberately left out of the report.

A lot of the data can be crafted to look better due to flaws in accounting rules. For example a project took 6 months to complete in phases, do you count the project's revenue from the day it started? or the day it ends? or the day you receive the money? or a fraction at a time depending on % completion? or the day it went operational without further obligation from the company ? In short invest heavily only in things you understand.

cheers

 

[limster]

basically what u saying is financial reports are useless.

That's one argument for TA in favour of FA. TA proponents may argue that FA is impossible because insiders will have earlier access to the data needed to calculate FA before you.

"One of the most successful traders to ever buy and sell green lumber – which is freshly cut wood – actually had no idea what he was trading. He spent his entire green lumber career believing the product was just wood painted green, and not newly cut tree."

"a star Swiss Franc trader whose inability to locate Switzerland on the map didn’t hinder his ability to make money trading its currency."

 

[alexchia01]

basically what u saying is financial reports are useless,trade only when u have insider information,like when u know temasek holdings is going to inject a billion dollar cash into smrt or renationalise/privatise their assets,or when they going to buy olam for 4.3 billion.

That's not what he meant.

He meant that anyone can read a financial report, but it took an experience reader to spot the problem.

Don't just look at the figures at its surface value. Learn how to spot the abnormality, this is the key to success FA.

Like a good mechanic can spot something wrong with your car by listening to the engine. Don't assume that your car is ok, just because it can run.

 

[alexchia01]

That's one argument for TA in favour of FA. TA proponents may argue that FA is impossible because insiders will have earlier access to the data needed to calculate FA before you.

"One of the most successful traders to ever buy and sell green lumber – which is freshly cut wood – actually had no idea what he was trading. He spent his entire green lumber career believing the product was just wood painted green, and not newly cut tree."

"a star Swiss Franc trader whose inability to locate Switzerland on the map didn’t hinder his ability to make money trading its currency."

FA and TA are 2 different things.

There is no 1 better than the other.

Depending on your trading and investing style, you may use 1 more than the other or both the same.

 

[wahkao3]

If you are investing, especially if you want to invest successfully over long term, you will have to understand the company much deeper than just PE/ ROE/ div yield or whatever that is put on the financial report. My personal experience is every serious investor can understand whats written in the annual report with a little more effort, but it took an expert to notice the things that have been deliberately left out of the report.

how to see things that are left out of report?

 

[wahkao3]

Don't just look at the figures at its surface value. Learn how to spot the abnormality, this is the key to success FA.

where got teach you how to spot abnormality?

 

[alexchia01]

where got teach you how to spot abnormality?

Yes, there is. I learned this many years back from an investing class.

One way to spot abnormality is to read the auditor's report.

When an auditor spotted something, they usually will put it into their report. So if anything goes wrong, they will use the report to cover their backside.

You just need to learn how to read between the lines and understand what the auditor is trying to say.

Please huh... FATA Master must know this.

 

[archcherub]

Yes, there is. I learned this many years back from an investing class.

One way to spot abnormality is to read the auditor's report.

When an auditor spotted something, they usually will put it into their report. So if anything goes wrong, they will use the report to cover their backside.

You just need to learn how to read between the lines and understand what the auditor is trying to say.

Please huh... FATA Master must know this.

n00b question here. i seldom touch stocks, so i really dont know.. haha.
how can we access the auditor's report, for every stock in SGX?
As well as american stocks?

thanks in advance

 

[peterchan75]

You can get the info at the company website under investor relations OR Yahoo Finance. First go to Yahoo finance and use StarHub (ticker symbol CC3.SI) as an example. Just type CC3.SI in the enter symbol box and click Lookup. On the left hand side, under Comapany, click profile. It will bring up the company address and website. Click the website and it will bring you to starhub portal. Click Aboutus > Investor Relations >
StarHub - Investor Relations

Alternatively, instead of clicking Profile, on the bottom of left hand side under Financials, you can find Income Statement, Balance Sheet and Cash Flow that Yahoo Finance has summerised for you.

Hint: Tardiness of Financial Report. If you go to the company website and you can only find the 2012 report or earlier, then beware. Now is already mid 2014. Why so shy about showing their financail report leh ?

 

[alexchia01]

n00b question here. i seldom touch stocks, so i really dont know.. haha.
how can we access the auditor's report, for every stock in SGX?
As well as american stocks?

thanks in advance

You can go to SGX website to search for company reports.

Auditor's report are usually just 1 or 2 pages in the financial report.

 

[Dyhalt]

how to see things that are left out of report?

The definition of "left out" usually means being hidden in a easily missed area in the annual report. For example a manufacturing firm can have positive growth in revenue/profit etc, but a sudden surge in account receivable days that is unlikely to happen under normal circumstances.

In simple terms this means it took a lot longer to receive the money for their product. Reason for this can vary but we must not rule out the chance it could be their customer is unable to pay for their product or its a malicious attempt by the company to count some product as "sold" when they were actually still under the company's inventory.(Inflated revenue)

Another commonly left out area are the type of debt the company took. Some debt are high risk with obligations, and lots of high risk debt signals the company have lots of undisclosed problems.

Theres too many examples so I just list a few, cheers