Wolf Money(book recommendation)
There are a few habits which I would like to mention specifically . He mentioned about habit 1 “Knowing Yourself”. Knowing oneself or self realisation is very important. It will set your mind on why you want to invest? what is your expectation? how much risk tolerance can you take? Drawing on my past experience as ex broker, I used to have a client who is always at the cliff edge when it come to her stock investment. After checking the fundamental of the company with me, she executed her buy orders. The very next moment she felt the stock might be too risky for her and she wanted out immediately. She will always ask me these two questions in quick succession. “ Can buy and make money?” and right after she bought the stock, she will follow up with another question, “will I lose money or not?”. When one is engaging in stock market investment, you are always subjected to higher risk for the potential of higher return. If the stock market is causing you sleepless night, it might be best to stir clear of the stock market. For people who are risk averse there is no better investment than a good night rest worry free from a falling stock market.
Habits 3 talk about getting the “right amount of information” before buying a stock. If one did the right research on the particular company you are buying. That give you an edge over other investors because you have superior knowledge and understanding of the true value of the company.
Habit 14 “Put on your street shoes” discussed about walking the ground to have a sense on how the business is doing. For eg another story of my ex client who frequently took mrt. She always observed Smrt trains are always crowded and foreshadowed Smrt Corp will make good profit for many years to come. For that simple logic, she invested in Smrt and make decent capital and dividend gain over many years before Smrt was eventually delisted after a successful privatisation offer by Temasek. Walking the ground does give the investor or potential investor a feel of the company. If you are investing in a listed coffee chain, go to their nearest coffee joint to have a taste of their coffee and experience their service. If one is investing in a hotel management company, it make sense to do some “walking via internet”. One can find out if the hotel management is managing their properties well or how well they did in term of customers satisfaction by looking at the reviews on Trip Advisor or bookings.com posted by their customers.
Other habits like “sense the management style” and “Pay yourself first” are classic investment 101 habits which will never fall out of fashion.
The book is delightful to read. It is suitable for amateur to experience market participants. The book goes onto the recommendation list of Lone Wolf Investor.
Please follow us on telegram for the latest update on Lone Wolf investor by clicking on the link below
https://t.me/joinchat/oCgkD3sQFRMzMWM1
Disclaimers
All investments is highly speculative in nature and involves substantial risk of loss. We encourage our reader to invest very carefully. We also encourage reader to get personal advice from your professional investment advisor and to make independent investigations before acting on information that we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies on which we believe are reliable but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way whatsoever warrant or guarantee the success of any action you take in reliance on our statements. All information provided are for information only. Buyer beware,do you own due diligence.
Comments
Post a Comment