Tuesday, August 09, 2016
Continuation from savvy investor
#1 : Capital Preservation
1. Please join my e-meeting, Wednesday, 10 August, 2016 at 10:00 PM to 11:00 PM
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Ok ... I will do a repeat of my first e-meeting (last Sunday night) to reach out to more readers who have missed. I will talk about pointer #1 : Capital Preservation
Few pointers from him(a fundamentalist) :
1. Do not trade using margin-account as many have been wiped out during crash and most do not know how to manage it
2. Market is to crash in 2017 (predicting early 1H2017). So, hold cash at the moment. No upside at the moment.
3. Change MYR to SGD as MYR will weaken further ... while SGD vs MYR will strengthen.
4. Identify a THEME PLAY ... ride on it and get out before the trend changed.
5. Bearish in equities, commodities, fixed assets and properties.
6. Buy a stock as if you are buying into a company-biz. Check the management. Example PBBank as one of the best around. Dialog is another example.
7. Buy consumer-stocks and medical stock (spore)
8. Avoid GLCs as we could not trust the accounts
How to be super investor
Mr T told me he knew many super-investors and including himself, they do not go to forums to comment or tell the whole world what they are buying/doing. Normally, they will buy-hold for years ... long-term investors ... and buying stocks such as Nestle, DutchLady, Panasonic, BAT, Guiness, Carlsberg ... and he is still holding to PBBank and Genting which I bought some 20 years ago!!
Panamy : Breakout of RM30 to hit 40 ... at RM36-RM37 level now. Hit low R35. BUY and HOLD ... during market crash.
Since he said market will be crashing by next year, I asked "Will you be selling any of your consumer stocks?" ... answer is "NO"
I was thinking ... PBBank at high at the moment RM19 plus, if it really to crash by next year ... the downside is HUGE. Isn't it only logical to SELL at current RM19 plus and buyback during crash ... say RM15 or below? Well, I know his cost is way below ... and in fact, ex-dividend ... whatever he is holding could be 'free'.
So .... how to be super-investor? BUY during crash ... buy good dividend consumer-stocks and HOLD, if possible ... hold forever (Warren Buffett style).
When we buy a stock, see if as BUSINESS ...buying the BUSINESS and becoming the owner.
Anyway, I hope to meet him again in Dec 2016 ... before market crashing.
Time for classes.