This Article was first published on 29th Sep 2017 on our Asia-In-Focus Newsletter. To get the latest newsletters, click here.
Sept 2017 Edition
Getting The Fundamentals Right In Investing
Have you ever think back on the first moment when you got interested in the stock market? Maybe this was before you know anything about investing. Maybe you have never heard of the term value investing or did not know who Warren Buffett was.
More many people, including myself, the moment came because we notice more and more people are making money in the stock market. Very often, it is during a bull market, people around you are making money in the stock market and it seems so easy. News about new market high is on Bloomberg almost every day. This might very easily be the trigger point to get us to start learning about the stock market.
From my experience, this is almost the most likely period that people would become interested in the stock market.
Just think about how many of us know about Bitcoin 5 years ago. And think about how many of us know about it now? Maybe, the 420 times increase in Bitcoin prices over the past 5 years might have help in bringing it to our attention nowadays.
Source: Dr. Jean-Paul Rodrigue Dept. of Global Studies & Geography Hofstra University
Very often, it is during this “mania phase” that most of us got interested in the stock market. Yet, many times, these great bull markets that attract us into the market for the first time tend to be rather short-lived. Inevitably, new investors might find themselves caught in a market down cycle without even realizing it. We panic during the crisis and might sell out at the worst possible time, leaving the stock market completely disenchanted, seeing it as a fraud market.
However, if we are able to get the fundamentals of investing right way before we start investing, we might stand a chance to really create long-term wealth for ourselves and our family.
Over the last few months, we went back to the drawing board to create just that basic fundamental course that would help our readers focus on the basics of investing. We created a 15 lessons course that is suitable for complete beginners to get to know more about the stock market and what are the things we should focus on when investing. Most importantly, we decided to publish it on our website for FREE. We did this because we wanted more people to appreciate the true meaning of investing so that more of you can enjoy the rest of the contents we have on ValueInvestAsia.com.
It is published as a weekly program, where we publish one new class every week. We want to explore with you the questions you might have if you are starting out in investing. Our team wanted to show you in a systematic manner, to let you understand if it is even possible to make money in the Asian Stock Market. We found that there are many examples which showed us that long-term investing really works, even in Asia. We found companies like Dutch Lady Milk Industries Berhad or Raffles Medical Group or Tencent Holdings. Companies with have grown 10x, 20x, 100x over the past two decades. This means that there are companies in the stock markets here in Asia that would have given you a 10,000% gain over the past two decades if you have invested and just hang on to them over the years.
We also highlight with you the importance of understanding what “investing” really mean. Many of us feel that we are investors in the stock market but very often we are merely speculating in the stock market. We want to explore what is the difference between the two and hopefully allow you to gain confidence in being investors without falling into the speculation trap.
Researching on a company can be a daunting task, especially if you are not financially trained. We included basic theories of financial analysis such as how to reach a financial statement, how to screen for stocks and how to value a company. All these allow you to better equipped yourself to become a value investor for the long term.
For those of you who are just starting out in the stock market, I applauded you for taking the courage to start taking control of your own financial future. I also hope this course would be of value to you, to set you on the right path on your long journey to financial freedom.
Screenshot Of Video Lessons
Because everyone absorbed information differently, we have designed this FREE course to be multi-media. This means that we have created content on video, audio, write-ups and visual powerpoints for all of you. So regardless of which type of media you prefer to learn from, I hope that you would find our “Beginner’s Guide To Investing In The Asian Stock Market” a useful course to get you started.
Till we speak again.