5 Tools To Supercharge Your Investment Process: For A Singapore Investor
May 17, 2017
I used to be a car nut. I was such a car nut that I ended up studying automotive engineering for my major in University. In my youth, all I could think about is buying an American muscle car and supercharging it. Of course, that is before I realize how lousy an investment a car was, not to mention the huge road tax and fuel cost associated with a muscle car.
That is when I turned from a car nut to a stock nut. Nevertheless, my desire to “supercharge” things never faded. Living in the technological age allows us to find many tools to help us supercharge our investment process. Unlike Warren Buffett, who found his stock mainly through reading annual reports and thick stock manuals page by page, we have very effective tools available right at a mouse click away.
Here are 5 of my favourite tools that have helped me supercharged my investment process. They are especially useful if you are interested in the Singapore Stock Market.
Financial Times Screener
A good stock screener is hard to come by. Most of us do not have access to a Bloomberg machine, which cost thousands of dollars a month. However, how can we shortlist the number of stocks in the market to find possible investments in the sea of stocks?
For me, I have found the Financial Times screener to be one of the most effective free screeners available. The Financial Times stock screener allows us to screen more than 37,000 stocks listed across Europe, Americas, Africa and Asia. Most of the data are relatively accurate and provide a great starting point for investors hunting for undervalued stocks.
I have been investing for more than a decade now. I invested in and followed hundreds of stocks. Therefore, it is extremely difficult to keep track of the development on all my investments. Thus, one great tool that I used to keep track of all news happenings in my companies is Google Alert. Google Alert allows me to track all my companies or even other keywords I am interested in real time. You can simply enter all the companies you are following and link them to your google account. Google will actively send you news it found regarding your companies, directly to your mailbox. It saved me a huge amount of time from searching all the companies I owned, one-by-one on the google search bar.
Investingnote is a Singapore-based stock investment social media site. It allows investors to connect with like-minded people investing in the stock market. It is a good starting point to look for companies you are interested in through its Cashtag functions, and see what others are talking about them.
Moreover, investors can even put in their own estimates of the company’s value and compare it with others. More serious investors might even upload their own research reports on the companies they are interested in. Even brokerage houses, like CIMB Securities and RHB Securities, would upload their in-house reports to the platforms regularly.
I used Investingnote when I need to find out about a company I am new to. The platform allows me to quickly gain up to speed on what is happening within the market and companies listed in Singapore.
uValue Mobile Application
Warren Buffett must value his companies by hand, I started out with an excel spreadsheet on Microsoft Excel. Both are long and tedious process in valuing a company.
Co-developed by the famous Professor Aswath Damodaran from the Stern School of Business at New York University, the mobile app allows investors to do a valuation on a company right with their mobile phone. The application allows investors to choose from a few versions of discounted cash flow valuation models. We can simply input our assumptions into the app, together with the data we found about the company and it would give use an estimated intrinsic value of the company we are researching on.
However, you must know that the valuation is only as good as the assumptions we enter into the program. Therefore, we must be careful not to follow the value we calculated blindly when researching a company.
Lastly, my previous employer, The Motley Fool Singapore, has done a great job bringing value investing to the mainstream in Singapore. It continues to be a great source of information for investors hunting in the Singapore stock market. Fool.sg is great for investors looking to find out more about the Singapore stock market or the news on companies listed in Singapore.
Its premium subscribing services, Stock Advisor Singapore and Stock Advisor Gold, also give investors active stock recommendations every month, which I personally used. The services provide huge value to investors who are short on time.
Stanley Lim has spent the last decade in the investment industry. Over the course of his career, he has kick-started a few businesses, worked in the family office industry and most recently in the investment advisory industry. He has been a writer and analyst for The Motley Fool Singapore from 2013 to 2017. He has written close to 2000 articles online, on investment education and market analysis. He is the co-writer of the investment book: “Value Investing In Asia”, published in 2018. Stanley is currently the chief editor of Value Invest Asia.