Friday, April 29, 2011

Advice to young graduates --- I

The market is still climbing the wall of worries now. So I'll still leave the market alone.

I've been posting some personal finance topics for most of this month and the response seems to be encouraging. I'm thinking may be I should do one to two more postings before I move on to some other themes. In less than 30 days, there will be a new batch of graduates coming to the job market. Congratulations to all new graduates. After years of hardwork you're finally on your path to achieve your financial freedom.

Over the years, I've seen all kind of young kids - some are ambitious and some are less. Some are from less fortunate family and some are from comfortable and a few from well to do family and probably one or two rotten kids.

I've seen some are with clear goal in life and of course, there will be some are taking things for granted. Some will want more responsibilities and some will avoid them perpetually.

I've seen some are full of common sense but just an average kid in school. I've seen some are excellent students but less down to the earth -- talking theoretical risk all the time(1 in 30 billion light years for example). I've seen some are really good kids - smart student and able to connect to the real world(these are the one I'll put them on the fast track).

I've seen some are wiling to bang their heads, dare to fail so to speak. Some will just waiting for their bosses to hold their hands.

Our biasness will tell us that those have clear goal, driven, resourceful, persistent and whole bunch of good qualities will succeed in life. Not necessary though, if you're working for the wrong company or wrong sector. However, those with attributes of "tidak apa", wait to be told, too gun shy, living on mum and dad's "foundation money", etc are doom to fail.

Like companies, some small companies will remain as micro-cap or small-cap over 20-30 years though they are well managed. That's because either they're sitting in their comfort zone for too long or they are in the wrong environment. Or their business is just not scalable. Or some made wrong choices going into too many unrelated business.

Like stock market, they don't care how hard you've worked or how much homework you've done, it is not necessary that your returns will be guaranteed.

After "loh-sor"(mumbling and babbling) for the whole morning, what's my point? If you are good, make sure you match your asset with the right company, right sector, right boss or else you will have a painful start. If you think you are happy go lucky - most likely you will not be reading this post - the 8th wonder of the world have just worked against you.

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