Author Feng Malaysia Nanyang Siang Pau editor-in-chief, and similar to the Hong Kong newspaper editor Cao Ren Chao, has almost 30 years of investment experience, investment, financial freedom and rely almost entirely on personal power, although no exact information that Mr. Fung is the actual return on investment, taking into account the investment philosophy on the Malaysia stock market are not familiar with the practice, this book is still worth reading a side dish.
this book because it is Mr. Fung in the past 30 years compilation of articles on the Nanyang Siang Pau, so obviously more scattered, the following excerpts from some of the highlights.
1, heresy human right
, cold believe that wealth creation must be based on value creation as the economy ring, part of the business, the value of the stock can not be fabricated, out of nothing if it exists, can only be a flash in the pan. right path, that is, from a business perspective, in accordance with the fundamentals of investing in stock investors on the stock market is a misconception in the stock market, I thought I could shortcut to get rich, so his fate is almost certainly a tragic
buy stocks buy shares
cold think that buying stocks is to buy shares in the company's stock on behalf of the company's assets and operations , like the land of the lease on behalf of the establishment of this view is very important, it can be said, the key of the stock investment. did not establish this concept, difficult to invest in the stock market success. each before buying, must be to remind myself: I buy the shares of this company, not to buy the roulette chips understanding clearly to buy stocks is to buy shares, the entire investment landscape has changed in equity before, and partner the same business must have a good understanding of the company, and partner and you have the confidence of friends, cautious investment in the company's management.
, shares how high the risk? the
many people think that equity risk is very high, but sit on the equity risk does not exceed the direct and the risk of doing business. as long as you do not follow the market sentiment, at high prices to buy company stock, then your shares on behalf of the company's business, the company operates successfully, the value of your shares will be with rise, or even bankruptcy if the business fails, your loss limit is 0, but if it is to do business, asset-backed, then, may be involved individuals, so the risk of stock investment, from the failure of the enterprise, which is enterprise risk if the purchase price is too high, there is the risk of market decline in value, investors should avoid the higher price of shares because the higher price of shares, being evil, difficult to make money, not to mention likely to buy inferior stock, so the root of the problem is the reverse + growth + time = value. This is a cold 30 years, adhere to the equation as long as the long-term follow to live honestly, investors will be able to obtain a reasonable return.
4, long-term investment should not disregard the changing circumstances
cold has recommended If investors over 20 years of age holding a Malaysian bank, Public Bank, Hong Leong loan, the OYL and the East Industrial stock five, 30 years later 10,000 ringgit (Malaysian currency) will become 1 million, but investors always will produce an illusion: is to buy some stock, locked in a safe back from the dead, opened 30 years later found himself to become a millionaire, but this idea is no doubt disregard the changing circumstances of 30-year long period more than 900 of the Malaysian stock market companies, only very few can become the best and more companies continue to sink, or even disappear. and buy stocks, investors must closely follow the company's dynamic and changes, remember to ignore. once found that changes in the corporate environment. shrinking business, decline, you can not stick to them, even at a loss have to sell at a loss, so how long it appropriate long-term investment, whether to continue to invest in it, not by the time, and should be decided by the performance of the Company. In addition, if the stock market extreme crazy, given the ridiculously high price, you also stick to the long-term investment does not sell, sit on the view that you are not a regular activity of investment material.
5, why not wait three years?
If you buy a wasteland to open up the cultivation of oil Brown Park, from logging, burning banana, open trenching, seeding, planting, weeding, fertilizing, full busy three years, only to see the emergence of palm fruit harvest is still not sufficient to maintain spending, and then two years, palm fruit is gradually Feng income and expenditure of the oil palm plantation, balance, and still be profitable. This is the fifth year of a busy five years, only to pay, no income, you is not a hardship, because you know that is to make money beyond to avoid way. If you are a small and medium entrepreneurs, you have experience in manufacturing a product, in the past for others, the management company, has now decided to start their own businesses, you decided to build a factory, you survey the market to banks contact the borrower to find the Factory, plant design, recruitment of staff, installations, machinery, pilot production, the product into the market, from planning to products on the shelves of department stores, before and after three years, and then struggling for two years, began profit, is the fifth year. you think this is the normal process of entrepreneurship, you are willing to peer with your career five years without any complaints. above example m open up oil palm plantation, engaged in industry, to open retail stores from the preparation to make money, the fast one and a half, the slowest five years, the industry never complained, because they know to do any cause, takes time, definitely not a quick fix Serve thing. the above examples have in common that is invested to earn a reasonable profit, called the they earn higher profits than bank deposit surface the cost to investors to accept two facts: ① investment takes time to earn a profit, no short cut operation. ② where the investment has risks, the level of risk often profit is proportional to the equity investments, is one of the many investment pipeline, why investors can not accept the above two facts. to do business, you can wait three to five years, why equity investments can not wait three to five years? to do anything after the failure of most Zhiyuan others, to lay the blame in the body of others or the environment, very few people self-reflection. stock investment, the loss did not blame the stock market is to blame someone else to make adultery with fraud never reviewed the reasons for the failure to ask again: buy a house can wait three years, why buy stocks can not wait three years?
6, equity investments have To be successful, must have earned ratio (net profit margin) was approximately, a little lax management, bad debts increased by 2%, the bank will be loss of Big Ben, followed by the bank's business, the scope is very broad branch of distribution throughout the home and abroad, there is no possible to the supervision of the bad debts will inevitably increase the level of bad debts, is the key to the success of the bank, so when you buy bank shares to the banks in lending is accept do not accept the stock.
7, how to minimize the loss? said Mr.
cold, I asked the eldest son of a medical student: people to heal the dead. wrong stocks suffered losses when earned, thanks to fewer long-term can make money how to reduce the losses it? experience is to adopt a reverse strategy, try to buy low, a simple view is between the stock price of the lowest and highest price of year The average price in the average price of the lowest point peace between a range of low to buy. in order to buy shares in the low buying range, it is necessary to develop the habit of reverse approach in the stock market at low tide most of the goods, cheaper as more people buy, with the exception of the stock is lower the more people are buying higher prices, and buy even more. This is most people end up losing money. buy if the price is up enough 50% , is basically out of danger zone, allow any stock to run if the performance of the company to continue to improve, you should not rush to get rid of, but continue to follow the company's growth, but if the company has deteriorated, regardless of make or lose, should be decisive to sell out.
8, retail the trilogy
cold MR that the U.S. subprime housing loans, set off a tidal wave in the global stock market roller-coaster stock market, individual investors panic, have become frightened. in the stormy sea, retail their emotional quotient (EQ) has overwhelmed the intelligence quotient (IQ). emotional control rational, their decisions, the decision of the emotional, not rational decisions. emotional decision, do not speak reason. incompatible because of emotional and rational, reason had to back away when the mood to dominate everything in the stock market crash, many retail investors, the sudden waves, rushed to the confusing emotions out of control, panic sell-off, a big mistake , the worst moment in the stock market, low price stocks sold at a cheap price to sell less than a month a big mistake, they'll regret it, because they are almost at the lowest possible price to sell. Why would I make this mistake? because their eyes can only see the share price did not see the stock behind the assets if they understand the assets represented by the shares, the value of these assets, they would not be so flustered, would not have to sell regardless of the cost, caused by unnecessary loss of retail investment according to the mood, their actions can be divided into three stages, called extinct stock, the stock market is dead. In fact, this time, most of the value of the stock is undervalued, but retail investors are not interested, they are interested in share price, not the value of the stock, so they do not buy. Part II: The leather rely on stable mm The stock market rose by a length, retail or not to buy because they did not buy at a low price, the stock has increased by a twenty or thirty per cent, they are unwilling to buy does not start Part III: The bull market form mm comprehensive refers to the breaking five hurdles will rush to 1,400 points, individual investors who see hunting delighted to see friends and relatives dragged fast, confidence, and is wantonly approach. elated when the sub-room incident evolves into a stock market crash leads to selling trilogy: selling trilogy: Part I: not much profit, while arrogant pressing, of course he will not sell. Part II: The Composite Index fell 1,300 points, he This is temporary and will soon be picked up, so I decided not to sell. Moreover, the high prices enough to make, but now it at a loss, they are not willing to sell. Part III: Composite Index plummeted below 1,200 points, he has a large sense of the disaster imminent collapse of confidence, regardless of the cost thrown. found that he is the lowest price to sell. buy the trilogy features are: buying high and selling trilogy is characterized by: low and sell high to buy to sell, just with the stock gnome mm buy low and sell high just the opposite. you want to make money in the stock market? If you want to, very simple, as long as the buy and sell trilogy, upside down to do on the line is called perverse acts. may face the fate of bankruptcy, and finally, the value of the shares is bound to a continuous fall, may eventually make you lose everything in the short term, stock prices will be the impact of stock market manipulation, intense fluctuations, but long inevitable stock and the company's performance synchronization, In other words, the stock price is bound to reflect the company's performance, but in time, sooner or later points. cite a Malaysian example illustrates: Public Bank (PbBank, 1295, the motherboard financial shares) in 1996 before the financial crisis, the stock of up to RM, a minimum of ringgit if you are in the 1996 collection so far the highest price of ringgit to buy a thousand shares (nominal value 50 cents) to receive five bonus shares and subscription of the first additional shares, currently has 12 950 shares (par value of one ringgit) to calculate the price of RM today, to 18,000 ringgit value, equal to four times the investment a decade ago, if the calendar year received generous dividends also included in the calculation, and earned more than 500 per cent. Please note that you buy is the highest price of the year 1996 and still get 500% profit. if is was the lowest RM buy, earn more. Public Bank in the 1998 financial turmoil, he fell to the ringgit, if you price in order to buy, you will earn ten times more than if you continue to win to go, and will certainly earn more. the public banks' profitability, mid-rise, makes you even if high prices to buy, can still win the game, the main reason for over a decade ago, when the second board stock, are pushed up to 10 ringgit above, I friends to the price of 10 ringgit to buy a thousand open screen (KaiPeng, 8796, two board trade service sector), the stick so far, the company's successive years of losses in the stock kept falling, and today only two points not to low same price to buy the bad stocks at high prices to buy the same holding period of more than ten years, bought the shares and buy the bad stocks, the results of a drastic change, so retail investors prefer the higher price of shares, not cheap to buy bad stocks. Of course, if adhere to the reverse strategy of low prices bought shares, you can earn more. They think I'm selfish, obviously know, but refused to share their experiences to predict stock market trends. In fact, or next year the stock market will happen, I do not think anyone has this ability. if I really know, I will be happy to share with you, just like I would be happy to share with you the fundamentals of investment experience. countless people. racked their brains, equity investment to make money do not need to rely on to predict the stock market The stock market is like the eel, covered with slippery, you simply can not grasp it. a fishmongers have done old school told me to grab caught eel, tight as good as loose, fast, better than slow, just not as good as soft, clever as good as humble stock market, you stare too tightly in an attempt to predict its trends, it happens against you. many shares of Friends, and do everything possible in an attempt to ; to capture the ups and downs of the stock market, the results are in vain, it seems hard to grasp the eel, and always catch the best way is to stay away from the stock market, do not care about its volatility, focus on the company's performance , but easier to adopt the reverse strategy, to buy cheap shares, do not move like a mountain. as long as the performance of the company is rising, not sell them. do not care about the stock market short-term fluctuations do not have to worry about from your stock will not, because when the company makes money more a long time, stock prices will inevitably rise synchronization. What
stock Kazuya? the
what is called the investment the right way.
11, lock star the stock
a shares of Friends, * a small fortune funds into the stock market, recently calculated the value of the stock on hand, actually had neither profit nor loss. he is not only a waste of valuable resources, and wasted 20 years of valuable years that he loved to listen to gossip, like to follow suit, grab high prices forward, while the purchase of stock, 10 to eight, nine junk stocks higher price inferior stock is fatal to high-priced buy inferior stock, and his fatal wound. thanks to his portfolio, there, twenty per cent quality stocks in 20 years, these quality stocks value-added one, twenty times the gain exactly offset the loss of inferior stock, so that he still does not break even. his recent review of the 20-year record, sigh and then sighed and said: ; the spirit of the past 20 years, suffered the torture of the stock market turmoil, and often live in fear, is really a nightmare. Instead, you are more industrious, doing more, constantly in the stock market to get into the blaze, the harvest is often the less benefited the most, but buy good stocks do not move long-term investors such as the mountain, which is the Kuok Hock Nien Tan Sri Teh Hong Piow, Tan Sri Lee deep static place among the the Ma Fuhao list secret.
equity investments, as long as do not make the serious mistake, long-term investments are basically can get beyond the time deposits Return To reduce errors, The best way is an investment to set their own criteria: only buy the five-star stock. the so-called growing businesses; Third, a stable earnings history; Fourth, the financial soundness; Fifth, production is always a demand for the product, and the world-market enterprises. five-star stocks as a deep-rooted outstretched, even if the drought, but also will not wither and die like flowers are in bloom when spring comes, the fruit of
12, do not know, not buy
the cold that led retail investors come to grief in battle are many reasons, one of which is that . naturally difficult to find a foothold in the stock market, because they stand firm the heel, just like the root of the tree can not stand the storm hit. stock investment required to do their homework, have a correct understanding of the stock is just a beginning. Next, you need to do a lot of homework to understand the investment environment and investment objects. to understand the deeper, earn more. Why is this so? because the success or failure of the stock investment, with the confidence you are buying stocks. confidence buying a company's stock, you have the courage bait are confident that you will be a long line to catch a big fish mm long-term investment. long-term investment to be possible to make big money. deep static, Tan Sri Lee never IOI does not sell the stock. of
丹斯里李莱 Health family not only do not sell, and growing holdings of all add to the Bay, Kuala Kepong stock. Tan Sri Teh Hong Piow never sell stake in Public Bank, Tan Sri Lim Goh Tong long-term grip Genting hold they have stocks of these companies for decades, a number of years as one day. after decades of complex growth, the original investment of RM10, 000 is now worth five million, ten million ringgit .
long-term holders of a stock of the company must have absolute confidence in confidence must be established in the understanding of the deeper understanding, confidence, the stronger the stronger the confidence, the more will not easily sell off holdings of good shares. long-term holding, in order to enjoy the huge profits of compounding growth. Buffett said If you buy a non-good stocks, long-term investment, in vain, in vain. long-term investment, you must understand.
do not know, do not buy!
13, good share why people fry?
sit on the view that the general retail most often a problem for me, rashly heard the stocks, hoping to hit, make a full house. retail has never been thought about by speculators phase, are inferior stocks, speculators are not interested in blue-chip blue-chip speculators are not interested in speculators in the hype before, the majority will get the cooperation of the major shareholders. blue chip shareholders are often reluctant to work with them. blue-chip shareholders, never go to hype their stock because the major shareholder of the blue chips are decent businessman, not going to fry high their stock, whether the stock is rising high, they will not sell off their stock, so as not to lose control of their careers, how can easily sell off? Since it will not sell off, why should I pushed stock? Moreover, as long as the results continue to rise, the stock price is bound to follow, why do you fry?
everyone to do one thing,Gucci Top Handles, there is a motive, since pushed up stock prices, will not sell off the stake, he did not Why did he do it? why keep speculators cooperation? so
good stocks that no one fried, because there is no need.
fired from the majority is bad stocks. the largest shareholder of inferior stock, not sure rely on to improve the performance of their shares (votes) value-added, had to rely on price. speculators not going to fry for the second round if the old trick and fry for another one, then, is stuck in the first round of retail, will be the opportunity to get out, then be stuck with the possibility of speculators. speculators will not be for retail manufacturing to get out of value stocks pushed higher, like blowing out with soap and water bubble children bubble children in the sun, colorful, but, as the , Kongjishise, Color behind the empty.
14, shifting shadows on the to move
Haoyue rise to transit, the shadows of flowers with the roots, embrace, locked in this move , the share price and performance go hand in hand. any external, human strength, can not make the stock price and profitability out of touch, even if the short-term runs counter to it eventually will be one and the same pace of advance and retreat. , wind and cloud are likely to mess shadows on the shadows on the out of shape, in fact, they can not change the shadows on the track with the month moving retail and its consuming spirit to guess stock price movements, it would be better mental spent on the company's research. able to identify the profitability of the continuing rise in the company, buy its stock at a reasonable price,Gucci Wallets, long-term holding, naturally increasing your you would not find that the up mm to attend the general meeting of shareholders of Public Bank the felt
Volkswagen Bank's success,gucci outlet, through business, with rich classic example of; Public Bank created, not just a win-win, but all is a winner ; through to win. listing of the bank, to RM1, 000 to buy a thousand shares of stock of the bank, regardless of share price from a much high, he is not to lure the sale of, to receive another bonus shares, subscribed again and again additional shares, after 40 years, he has a total of 120 009 thousand 730 shares. February 26, 2008 shareholders' meeting held that day's closing price of 11 ringgit 50 cents calculation, gross 1,490,001 1000 895 ringgit at 40 years, he received a total dividend of 48 17,000 902 ringgit. stock appreciation plus dividends, returns of up to two million ringgit .40 years ago, investment of RM1 now variable RM2, 000. one such phenomenal wealth for its shareholders entrepreneurs by the shareholders of love, not natural? Public Bank, on the other hand, since 2002, to pay 2.4 billion to RM50 million in tax, these taxes, build infrastructure, the benefit difficult to calculate the leader of the 1000 listed companies from the Zheng landmarks and popular success of the bank, a taste that can only create a borers of the enterprise, certain shareholders and society cast aside.
16 make your senses, and reduce errors. hovering at a low price area for quite a long time, you have enough time to choose fat bite, do not have to worry about buy to make money, we must first learn to not lose money. moving steadily, step by step as a prerequisite for the camp is to prevent losses. reckless act, recklessness, ranging from hurts,gucci indy, while to the death. wise not to also. ; tolerance before may be able to man can not endure in order to get rid of the high-priced area.
buy, may be able to have patience, to long-term holding an Italian. if may be able to slightly profitability could not wait to throw a limited income How that slow, stable, and tolerance between science and art. equity research covers two parts: the first part: the theory of the second part: study of listed companies, by the time required to study the development of the individual companies history of business as the weft, need to study the structure of the company, industry characteristics, financial evolution, background and style of business management leaders, the business concept, complex, and never as a fun nature, as the amateur attitude towards can be sexually explicit. stock investment is very personalized, suitable for the A's theory may not apply to B if there is a theory can be applied to all the words, then we copy Buffett's investment philosophy is to do, everyone can be Buffett's second fact is: the study of Buffett's book, the less there are a hundred kinds of the world, however, does not appear the second Buffett. If you look to the West's most successful investor history, you will find everyone in the style of investment practices vary, however, they are the same thing, there is a remarkable achievement. so successful investment, you can learn to invest, or to develop their own set of strategy. as education, primary and secondary schools of basic education, nothing is read, regardless of practical utility should be read in order to their blog. Bo no to expand horizons, to become a frog. University, specializing in a field, reduce the scope of the not - read mathematics, such as liberal arts students, but a more in-depth general education designed to find the fine is not fine is superficial to the MA, PhD, are eligible to say are wishful act, not breaking the rules, is to not crash
mastered, Bo and fine bankruptcy you were
fast, aggressive, quasi-, is were lower than the others, is to , the stock of human, 99% in the back of the masses ; fast However, the stock market starts acting strangely the place, do you think the stock market will play, it happens to crash, do you think the bright, the future of the company chosen to smoke a false account. If you Xinxinbaopeng, if desperate, bankruptcy waiting ; accurate? not allowed to see the action as fast as lightning, the sale of audacious, the equivalent of suicide.
swordsman inevitably perish under the sword. trying to use , I'm afraid in case. once inaccurate, never recovers.
careful, be careful!