Friday, April 28, 2023

Investing - A Journey of Learning and Discovery

    I've been investing in stocks since 2012. Although my performance hasn't been superb, it's been a journey of learning and discovery. What fascinates me about investing is not just making money, but also learning about different businesses and industries. I enjoy reading about different businesses from their annual reports and discovering how different industries work. 

The reason I start this blog:

  • Write to think - Writing has always been a great tool for me to think through things, and I plan to use this blog as a way to be more diligent in my investing. 

  • As a checklist - By putting my thoughts into writing, I can use it as a checklist and uncover areas that I may have overlooked before. This way, I can avoid making the same mistakes in the future. 

  • As a decision journal - Another reason why I want to keep this blog is to keep a decision journal. By recording my investment decisions, I hope to gain insights by reflecting on my past actions. This will help me to be more mindful of my future investment choices.

My general investing strategy: 

  • To be a copycat (the lazy method) - I begin by screening the portfolio of super investors, and then build a watch list. I'm quite patient with this process because I wait for the right price to get in. I may buy immediately after the investors disclose their investment through the 13F filing, but only if the price is below their buying price or hasn't shot up. Otherwise, I wait for a few months to a few years when the price is good again. 

  • Special situations - like spinoffs, odd-lot tender offers, and structured trades. It's exciting to discover these unique opportunities, and they can be available even when the broader market is not doing well. The turnover in this category would be moderate to high.

  • Businesses in our daily lives - known as the Peter Lynch method. In my experience, I've found that the qualitative aspects of a business are a better indicator of business quality than the numbers you see on the financial statements. For example, qualitative factors such as how the company makes its customers feel, through aspects such as customer service or brand impression, will generate the financial performance it deserves over time. The qualitative is a leading indicator and the quantitative (financial results) is simply a lagging indicator.
Investing has been a fulfilling journey for me. I love learning new stuff and I enjoy the process of seeking opportunities. I think writing this blog will help me to be more diligent and be a better decision maker.

In this blog, I'll be sharing my learnings and ideas about investing, as well as tips for beginners who are just starting out. Whether you're a seasoned investor or a complete novice, I hope to provide some insights and unbiased perspectives. Let's explore together.