Sunday, April 29, 2012

Stock investment

3 days of long hour classes in relates to stock investment with Adam Khoo, starting from the basic of stock, financial statement reading, useful ratios, business analysis, PV & intrinsic value, investing game and others really broaden my mindset towards applying what i have studied in university.

In the millionaire game, i would say im a little conservative. Buying 100 - 150 lots , compare to others who may be buying 1000 lots. Besides, i still keep holding the stock while others are selling it. Easily influenced by others and feeling regret after that. Make few right decisions, too taken for granted with life - mutual funds - trusting something that is too good to be true. Ask for opinion which affects my decision. My aim is to win, without a clear target to achieve. The businessman who wins really deserve it , as they are more aggresive type who will leverage on bank loan to finance the purchase of house when economy down as well has good foresight of which is the good stocks even they have no financial background. Not panic when economy crash. It helps me in managing my cashflow , with reserves in the bank in case of any uncertainties - no house rental to cover premium of rental, lose job, and others. Fill up SOCI in the beginning of the quarter, and SOFP in the end of the quarter. By monitoring it consistently, i will be able to monitor my net worth.

I would say with KNOWLEDGE alone is insufficient as i may be lack of real life experience. I would not blame my mistakes , but i treat it as lesson learnt :-


  • never influenced by others.
  • cashflow management 
  • reduce lia - increase asset
  • cover "must" exp
  • too naive to being trust others. trust myself - for investing own money.
  • Dont sell stock -with the belief / greed that it will go back higher / lack of discipline / influenced by others
  • Have cash, but never fully utilised it ( not investing is even higher risk )                                         
Besides that, i learn about 10 fundamental analysis of FS 
  • Sales , cashflow, net profit increasing ( annual / quarterly ) 
  • Economic moat - ROE > 15% / GPM & NPM / brand , monopoly , barrier to enter
  • Risk is managed
  • Management buy or sell stock
  • Cashflow 
  • LT Debt = 4x net profit
  • 50 , 150 , 200 SMA / 20 40 EMA ( 1 week = 5 days ) for daily chart only/ jack weekly - 2/5 weekly EMA 
  • Intrinsic value - beta / operation cashflow ( 4 qtrs ) / Total debt = ST + LT / growth rate
  • Growth rate 
  • ROE / ROIC > 15%
Besides i also learn about candlestick
  • hammer 
  • doji
  • long chain
  • dark cloud cover
  • piercing 
  • harami
  • bearish engulfing
co having negative / inconsistent CF ( PEG 1 < x < 1.3 )
co losing money ( buy - PB < 0.5 )
bank ( PB 1.2 < x < 1.4 )
property developer ( buy if price 20% less than NAV )

Choose stock based on daily usage ( consumer monopoly ) , stock screener , bloomberg news , gurufocus to create a watchlist of 15 co .. hold 10 stocks max for better management with multiple industries ( portfolio )

Thursday, April 12, 2012

Adam Khooooo

Awesome presentation.. !! as expected from a world class presenter

It is focusing on Stock investment . but actually it links with Financial statement reading , P/E ratio, intrinsic value, director declaration and others which i learn from ACCA. But it is real life game of stock which involves real money.

Besides what's more important to attend his workshop is his MINDSET. there is similarility of his with Datuk Lawrence's mindset. Both have high BELIEF level in themselves. I realise after datuk's workshop, the belief level is not as strong as previously. Maybe i have to keep reminding myself and stating WHY i have to keep the level of belief high at ALL TIME. Only with measurable reasoning, then i would have know how to overcome it .

Adam - strong enthusiam in giving presentation and excites us at all time with his facts and knowledge makes me stay wide awake the whole 2 hour briefing on stock. He applies NLP to develop curiousity at all time - ie " giving out for free" ? " / " finish his sentence " / " fill up the form " " relevant charts with figures that excites us " / " 5% of his knowledge" ... which makes audience waiting for his to give more n Paps ~~ there goes the sale of the workshop TICKETS.

What i learn tonight is :-
  • Intrinsic value - future income generated discounted to PV
  • ETF ( at least 3 )- long term
  • Index
  • Passive Income - Financial freedom
  • Wealth calculator = Liquid asset / expense - passive income
  • How only will have Financial freedom - 10k a month ? how much saving per year ? at what age
  • Belief level
  • Action - winner take action , losers procrastinate n give excuses
Passive income are generated from -
- business (Stocks)
-property (REIT)
-Intellectual property

One can get info of Director buying and selling / can get to know the intrinsic value - over or under valued - 5 / 15/ 25
(P/E of index from bloomberg )

Moving average used - 50 and 150 days . cross with both slanting downwards or vice versa to buy or sell.

Shanghai , Jakarta, Hong kong, Singapore is a good place to invest. Get to broker and get MA and others for free . Invest in Index for long term - 20 years+ will see an uptrend . Min 250 to start investing. If cant manage small fund , how to manage big money.

It is a MUST have if want to be rich .If doubt and have low belief level, then one cannot be rich... Rich - how many months can sustain without active income ( AI - can stop if not working )

First - what lifestyle u want ? then what strategy ? then financial plan to invest right ( Knowledge is the best protection level )

US is good place to invest with low commission and min 1 share only . There is all uptrend EXCEPT JAPAN . there is always a false breakout throughout the time , but remain calm with good analysis to support ur own reasoning

Invest 10% of saving ! Don invest will lose 75% due to inflation ..

10 criterias to meet -
- insider buying stock ( can get news )
- stock price is below intrinsic value
- stock price is on uptrend

Monday, April 9, 2012

New Perspective

I learn "mirroring" from Adam Khoo's book. Find someone that you find to be a good mentor to be your role model. Copying his style of outfit, the way he speaks, and more importantly his mindset.

I have few great mentor in life. From teachers such as Miss Bee Lee, Mr Teng, Miss Menon, Miss Rozi, Mr Simon . From ex-gf who teaches a lot of values and reality of life to me which toughens up my mindset as well as making myself more mature in few months. From parents with great loving, passion in what they are doing, and shaping myself. From leaders such as Adrian and MK who consistently coach me even during my hard times. From staffs such as May and Jenny that assists in my work when im still new to work. From friends such as Hoong Kin, Jeffrey, Wei Hong, and others who are business-minded and investor savvy persons ( entrepreneur mindset) . From FOREX traders friends such as JZ, and Vincent. From Amoeba friends such as Elaine and William who teaches me leadership, public speaking, NLP and others. From best friends such as Kenneth, Martin, Ching Yee , Yee Seng, Lip Yong, whom i share great laughter with them.

I realise how important to mix with the right type of friends in life. All in a while it is necessary to mix with some crazie friends to release stress, n get a feel of back to uni life. But i have to realise that in order to develop the right attitude and mindset, i have to consistently surrounded by positive minded entrepreneur who is a thinker n implementer. Spend 3 nights meeting with entrepreneurs to update myself of new business strategy and industry trend.

I like what Dr Wong said, "networking" .. But it is more important to find the right people to speak to for a productive time . i once talk to a self made millionaire insurance salesperson, who always find someone older and wiser to speak to in order to learn at tremendous speed.

Having to see so many people in KL driving nice cars. It is not easy as we assume. It is the effort that put in thats counts. Adam Khoo says 10000hours spent to be expert in a certain areas. Once has to climb up the ladder of knowledge slowly, faced with obstacles, find ways to overcome, in order to grow to what they are today.

Datuk Lawrence sleeps less than 5 hours a day, Mr Goh says sleep more than 5 hours a day is a sin ( same goes to Miss Geetha n Miss Menon ), Dr Wong sleeps from 2- 7 am but yet they all still remain so ENERGETIC, but i sleep 8 hours a day but still so tired. i think it is the willing power to remain alert defeats the sleepiness and the habit of it. Right supplements and diet will improve it with some exercises.

How to buy time ? Dr WONG's theory- to double the time, work when other people looking at clock to go back, HK artist - gym at 12am when others are sleeping, dad who does sales till 10pm last time, MK who does insurance planning till 12am, Dr Wong who works during holiday and weekends, Elaine who works till 2 /3 am to design the ALC schedule for us, brother who works OT and sleep at irregular hours as a doctor. People works 8 hours - Singaporean works 12 hours ( which makes them 2nd in the world n lot of Millionairesss )

Love can be quantified by time. Spend quality time with family and loved ones.

The art of praying to Buddha- bring him luck with lot of people assisting him at the right time. It is his high belief level and strong visualisation that brings him to where he is today. Critical THINKING, of disagree if it isnt right, and sharing his knowledge reinforce his level of understanding.

He has luck to get a good mentor in his life - BLUE OCEAN . Dr Bong who teaches him lot of things . Doing something people thinks it's impossible. Tap the untapped market. First impression that matters ( facial )

Everyday time is spent on reading 1-10 pages increase the knowledge level - the way someone communicates show how much ones know about an issue. William who speaks so well in public speaking is due to his vast reading, applying and sharing his knowledge to others. When it is shared, he gets the result twofold.

Why he reach the top at 38years old and headhunter by so many big corp ? he is working at ad hoc basis - project based ( more challenging - consistently thinking ) being backstabbed by others but still remain strong. Working with others not for the fixed salary ( OBLIGATION ) but to actually add value to others ( 1 and half year to bring 40% increase in sales ) as well as increase knowledge of particular new industry ( oil palm - vast usage of its waste material - BIG market ) ..

Consistently MOVE FORWARD , but focusing NOT on people but on the ISSUES . even after scolding someone - still can talk because not attacking the individual but his wrongdoing issues. Dont care how peoples see or talk about us, as at the end of the day, it is our "RESPONSE" that leads to the "OUTCOME" , but not the "EVENT" that matters ( Adam Khoo's theory )

Never give justification, do not occupy space is my dad's theory which is perfectly true. May can work very well, but due to her seniority, justification given to protect her own interest may limit where she can fly.

One has to start from basic, slowly learn the subject matter and implement what is learn in the business. I BELIEVE IN MYSELF that right attitude, mindset, action, response, love, time management, people, knowledge, will lead to BEST RESULTS one day .