Friday, January 1, 2010

Good Morning 2010.



Added $ 888 saving for January 2010.

Good morning 2010.

When I was young, I hope time to pass a lot faster. The logic behind that thinking was as an adult I have financial freedom and do whatever I wanted to do. As time passed by, it's a little scary because I'm getting older, I hope time can pass a lot slower. The logic is completely opposite - too many things to do, too little time left. Now I know why older people are more cautious, they know making mistakes will cost them a lot more when they don't have that much time left.

The book of Security Analysis outlines many things, many are outdated but it leaves some very powerful timeless principles - Mr. Market and Margin of Safety.

I'm applying the margin of safety to as many situations as possible including blogging. Yes blogging. I can put up hell all lot of disclaimers, you alone responsible entering buy or sell activities after reading my blog. Consult your investment advisers, bla....bla.....


When I post certain ideas or stocks, margin of safety is my priority number 1. I'm trying my very best to avoid large or permanent capital losses(in case they act on my writings). If you watch the movie of The Guardian, the legendary Coast Guard Rescue Swimmer did not count how many lives he saved but lost. Despite of I'm trying my best to avoid dogs, I still met a few. My biggest dogs so far are Axiata(-47%) and MUI Industries (-25%) and Parkson (-8%). All are still pretty much undervalued in my opinion. Axiata sellers will soon exhausted themselves, sellers have been selling for almost 1.5 years now. There are many quiet accumulators of MUI shares over a period of 2 years, the pattern that was very similar to PPB before the share price rocketed. MUI cut down their debts from 1 billion to 300 mln, it's a matter of time this debt will go to Zero. Not defending myself but reinforcing my conviction and that's why MUI is still in my portfolio.

The existence of this blog is to prove one point. In order to make money out of the stock markets, there are no short cut. Research, research, research. Period. If we fail to research, we plan to fail. Research does not mean we need a Bloomberg terminal. If you look at my works, all of them are from public domains -- annual reports, on-line news, blogs, 1 or 2 newsletters, Nexus chart(free version) and sometimes stock brokers' reports(90% of them are useless).

I only have two main tools, a financial calculator(mostly arithmetic) and spreadsheet(mainly used to tabulate data).

Don't get me wrong, I'm not tooting my horn on the first day of a new year. My aim is to share, to be one of the 3% survival of stock markets, we need to have passion to do ordinary things well and not doing extra ordinary things.

1 comment:

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