3 Methods For Idea Sourcing

3 Methods For Idea Sourcing

How do we search for ideas? I believe this is the million dollar question everyone frets about when first starting out investing. How do we find potential investments to research on? How do we know if this is a good enough idea? And the list goes on. In the search, we adopt the same attitude one might find appropriate in looking for a spouse:  It pays to be active, interested and open-minded, but it does not pay to be in a hurry. Warren Buffett We all prefer some characteristics we wish to see…

6 affordable ways to invest for the average Singaporean

6 affordable ways to invest for the average Singaporean

We get it, not everyone has $100,000 to sink into a well-diversified portfolio. But you have to start somewhere, or you’ll never be in that position. The good news is that you live in one of the world’s biggest financial hubs, and there are products that cater even to those on modest incomes. Here are a few things to look at: 1. Blue chip investment programmes There are two participating banks we know of (OCBC and POSB) that offer blue chip investment programmes. For a minimum monthly sum of just $100,…

Enterprise versus Equity Multiples

Enterprise versus Equity Multiples

There are two basic types of multiple that an investor has at his disposal – enterprise and equity multiples. Definitions From the UBS Warburg report: Enterprise multiples express the value of an entire enterprise. That is the value of all claims on a business – relative to a statistic that relates to the entire enterprise, such as sales or EBIT. Equity multiples, express the value of shareholders’ claims on the assets and cash flow of the business. An equity multiple therefore expresses the value of this claim relative to a statistic…

4 reasons why you must invest – especially if you’re so darn lazy!

4 reasons why you must invest – especially if you’re so darn lazy!

Well, you don’t. Actually. That is if you don’t mind working for the rest of your life, wondering if you’ll ever escape the rat race and struggle with rising costs and inflation for the rest of your life. But if you’re like most regular people who value financial security, freedom and independence, then investing is vitally important to you achieving your financial goals. Here are 4 core reasons why you need to invest (besides the fact that you might be an evil megalomaniac intent on taking over the world —…

15 Trading Tips From Jack Schwager’s Market Wizards Seminar (Part 2 of 2)

15 Trading Tips From Jack Schwager’s Market Wizards Seminar (Part 2 of 2)

This blog post is a continuation of the 15 trading tips that Jack Schwager shared during his market wizards seminar. For the benefits of those who do not know him, Jack Schwager is the best-selling author of the ‘Market Wizards’ series of trading books, which have sold over a million copies worldwide. Below is a continuation of what Jack Schwager shared in the seminar:   8) Discipline This part of his talk emphasized on the need to cut loss when you have to. The single trait that makes most people fail as…

Operating Defensiveness versus Capital Defensiveness in Stocks

Operating Defensiveness versus Capital Defensiveness in Stocks

Defensive stocks are known to be non-cyclical in nature, whose performance is relatively resilient to the economic cycle. Such stocks are often seen as attractive investments during a recession and people are generally quick in pointing out whether a stock is defensiveness or not. My view is that there are 2 aspects of defensiveness for a stock – operating and capital – which have to be considered. What is Operating Defensiveness? A stock is operating defensive if its product or service sales are unaffected by the larger economic cycle. I…