Wednesday, November 1, 2017

TOM K: UNDERSTANDING IS KEY TO INVESTMENT SUCCESS


MY INVESTMENT PORTFOLIO
Dear readers, yesterday I shared that I disposed off all of my Fu Yu stocks. The divestment of my investment in Fu Yu stocks was due to me not understanding why there was a big divestment of Fu Yu stocks by a substantial investor. As a result of me not understanding, I did not hold my stocks in Fu Yu anymore. However, if an investor knows and understands the reason behind the divestment and if he deems that Fu Yu stock will still be bullish, then he can continue to hold. I mean ultimately, when we make decisions in investing, it all hinges on what each and everyone understands, which is differs from investor to investor. And based on our understanding, we make investment decisions.
For those who are fundamental investors, I think even the best read up of a company’s fundamentals may not yield ALL the knowledge that an investor needs to understand about a stock. If an investor puts $1million into a so-called fundamental stock, knowing for sure that the 99.9% he understands al point to bullishness, but he does not know the 0.1% of what is not publicly known, then there is a risk to his $1million investment ultimately.

Hence, as investors, when we invest, we do so to the best of our knowledge, our understanding. Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.

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