Jay reading the article and comments trigger some thoughts
1. most of those who kept talking about biz sense has no idea what it means. if all business owners have biz sense we wouldn't see so many loss-making companies in Bursa. as investors have limited info and access to mgmt, the tried and tested way to gauge a management's quality is still through their qualification and track record.
2.investing (FA) vs trading (TA) has existed as long as investing has been around. I have seen practitioners of both disciplines done well so I'm not against either approach but one should not mistake one for another. kc is clearly talking about FA here but many others keep talking TA with "biz sense" as disguise.
3.many still cannot differentiate between investing/trading or stock price vs value. Some companies are suitable for long term investing while some just for short term trading. and rubbish companies don't turn good just bcos the share price went up, vice versa.
4. if you trade on a rubbish stock which price went up and you exit with a profit, congrats as you time the market right this round. repeat the trading enough times without clear risk reward management plan, you would soon join the herd who keep complaining that stock market is just a lie that cheat people's hard earned money
5. the most difficult thing about stock returns is not about how high % return, but consistency. why warren buffett is regarded as the greatest investor when he only generates slightly above 20% return a year? many in any investing competition would have beaten buffett hands down this year but can they repeat this return over 50+ years? gaining 50% a year and losing 50% the next year actually gives you 25% loss whereas someone who makes 10% a year would have made 21% return
in summary, kc is trying to teach the youngsters nowadays about long term fundamental investing principles but most are just interested in making a quick buck in the next week or month.
to kc, I share your experience. sometimes pointing out a lemon does makes lemon owners irritated. but as long as someone learns something or save him/herself from that lemon after reading your article, that would make it worthwhile. cheers
1. most of those who kept talking about biz sense has no idea what it means. if all business owners have biz sense we wouldn't see so many loss-making companies in Bursa. as investors have limited info and access to mgmt, the tried and tested way to gauge a management's quality is still through their qualification and track record.
2.investing (FA) vs trading (TA) has existed as long as investing has been around. I have seen practitioners of both disciplines done well so I'm not against either approach but one should not mistake one for another. kc is clearly talking about FA here but many others keep talking TA with "biz sense" as disguise.
3.many still cannot differentiate between investing/trading or stock price vs value. Some companies are suitable for long term investing while some just for short term trading. and rubbish companies don't turn good just bcos the share price went up, vice versa.
4. if you trade on a rubbish stock which price went up and you exit with a profit, congrats as you time the market right this round. repeat the trading enough times without clear risk reward management plan, you would soon join the herd who keep complaining that stock market is just a lie that cheat people's hard earned money
5. the most difficult thing about stock returns is not about how high % return, but consistency. why warren buffett is regarded as the greatest investor when he only generates slightly above 20% return a year? many in any investing competition would have beaten buffett hands down this year but can they repeat this return over 50+ years? gaining 50% a year and losing 50% the next year actually gives you 25% loss whereas someone who makes 10% a year would have made 21% return
in summary, kc is trying to teach the youngsters nowadays about long term fundamental investing principles but most are just interested in making a quick buck in the next week or month.
to kc, I share your experience. sometimes pointing out a lemon does makes lemon owners irritated. but as long as someone learns something or save him/herself from that lemon after reading your article, that would make it worthwhile. cheers
12/06/2017 21:47
I am totally agreed with both of them.
KC Chong articles:
http://klse.i3investor.com/blogs/kcchongnz/125145.jsp
This Jay comment very constructive feedback and he write in " http://klse.i3investor.com/blogs/purelysharing/"