The recent market correction in the US is perhaps a wake-up call for some of us. Well, some may think to themselves looking at the sea of red, “Hey, investing in stocks is actually kind of risky. I can lose a lot of money within a very short period of time”.
- Seeing Red? Here’s what 10 Financial Bloggers think (read here)
Really our worst enemy is ourselves.
Often we hear about how others did well financially. How their investments are paying off. 2017 was a particularly low volatility year when it comes to the stock market in general.
Seldom do we hear about screw-ups – When people lose big money. That is natural. Who wants to look like a fool in front of others? Look like a failure.
However, it is even more seldom that we hear about how people rise from their failures and learn from it.
Investing in the stock market always provide me with a very humbling experience. I thought I know which stocks will do well and when the market will peak or crash. Or how well I know myself and my temperament. And how well I take losses.
My worst stock pick is probably Golden Agri, followed by SIA and SMRT (come to think of it, they were mostly blue chip or ex-blue chip stocks :p).
Sometimes, I wonder what is the percentage of people making money vs people losing money in stocks.
- Stocks — Part III: Most people lose money in the market (read here)
- Nearly 70% of investors lost money in 2015 (read here)
And I am not sure how many have given up investing in the stock market altogether.
Often, we surround ourselves with people of similar social standing and financial standing… our peers. Nevertheless, it is always good to meet people who come from a different ‘circle’. To learn from their screw-ups and how they have managed to overcome it. How hungry they are to succeed.
Below are 4 examples of people who had screwed up big time financially, but have managed to bounce back up.
- Down S$740k after penny-stock crash, he clawed his way back (read here)
- Ex-bankrupt can laugh all the way to the bank (read here)
Enjoyed reading your blog and learning from the postings.
Question for you is why don’t you invest in your own or related industries? In construction there’s Hock Lian Seng or Low Keng Huat, in property there’s Wing Tai or Bukit Sembawang, and the many REITs.
I basically don’t like cyclical stocks. Construction stocks being one of them.
Having said that Bukit Sembawang is a good choice but was too hyped recently. I have been waiting to enter REITs at much better margin of safety.
I also don’t like stocks with large debt and low cash holding.. this will kind of exclude most developer & construction stocks and REITs.
Not sure if you have post about this already. But what is your thoughts of blockchain technology? I am not a fan of crytocurrencies because for me it’s like forex trading. What I’m interested in is the blockchain technology itself. Do you know if there are public companies that are using blockchain as their means of growth which we can study for potential investment?
Sorry, I am not an expert in crypto-currency. Block-chain is basically a universal ledger whereby the account is not held by a third party (eg. bank) but by all members. It has its pros and cons. The good point is that there is no need for the third party and hence minimum (or rather no) fee for the transaction. However, in terms of power consumption – it is far more energy-consuming to have an extensive block-chain and to maintain a whole system of records. (Crypto-currency because of its crypto-mining set-up and this block-chain system consumes a lot of power) This might be its Achilles heel.
As to which public company is using blockchain, I am sorry, I did not research on it. What I have read about are mostly start-ups and private companies.
However, I did come across articles about Razer company, headquartered in San Francisco and Singapore (which is listed in HK if I am not wrong). Razer has its own virtual currency.
Extract from this article (https://www.techinasia.com/razer-epayments-singapore-2):
“The key to this is lowering transaction costs, says Teow, which means its true competitor is the blockchain…..
Razer wouldn’t comment on whether its proposal involves a blockchain.”
I think the bloggers SG Budget Babe or Got Money, Got Honey may be better people to ask (if they are willing to share).
Thanks. I’m just thinking if we can ride this blockchain tech without being involved in cryptocurrencies
I see. But I don’t see how the company can make money from block chain.