Investment Principles

September 25, 2015

Why Should I Invest at All?

Why Should I Invest at All?

This is a fair question that I think everyone should think about. So let’s think about it now:

  • Do you want to invest for your retirement?
  • Are you investing for your child’s college fund?
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August 6, 2015

The Cost of a US University Education

U S University Education for Your Newborn Costs about US$2,000 per Year

The cost of a US public university education for a child born today will be about US$80,000. A parent could invest about US$2,000 the year their child was … Read the rest

February 3, 2015

Savings as a Source for Wealth

T here are a number of ways to build wealth. The two main methods people tend to think of are through your career and by investing. Saving money definitely deserves its place in a wealth-building strategy too. No matter how… Read the rest
January 27, 2015

Avoiding Big Investment Mistakes Early On

W hile it’s great that you’ve decided to start investing at a young age, it’s also essential that you avoid some especially big mistakes early on. Some mistakes may be considered part of the learning curve, but you don’t want… Read the rest
January 21, 2015

Remaining Realistic about the Stock Market

P utting money in the stock market is always a big step, regardless of what your goals are. However, no matter what you hope to achieve specifically, everyone wants to see their money grow. Unfortunately, too many people aren’t realistic… Read the rest
January 13, 2015

The Importance of Starting Early with Investing

T here are a number of factors that go into successful personal investing—things like coming up with a plan, keeping it simple, writing it down, etc. However, no factor may play quite as large a role as timing. The sooner… Read the rest
January 6, 2015

Keeping Your Investment Strategy Simple

E veryone knows that personal investment is integral to their financial future. However, surveys have shown that only one in four people actually take the time and put forward the effort to commit their plan to paper. One of the… Read the rest
December 23, 2014

Do You Have a Plan for Personal Investment?

N o matter what you endeavor to do, success is much easier if you have a written plan. This is true when it comes to weight loss, buying a home, starting a business, and it’s definitely true when it comes… Read the rest
November 21, 2014

What would it take a 25 year old to achieve financial freedom by 40?

I t would be very challenging for a 25 year old to achieve financial freedom at 40 by investing in the stock market. They would first need to make sure they had most of their assets in a diversified fund… Read the rest
November 11, 2014

Principle 12: Stay invested

S tay invested. “Cool heads win in the end.”Valuation expert and financial analyst Andrew Stotz’s last investing principle is something that mature investors can live with. It’s as simple as staying invested for the long haul.A lot of… Read the rest
November 6, 2014

Principle 11: Be patient

W as there a time when you bought something in a rush, only to realize it’s broken and needs to be returned immediately for repair? Was there a time when you pulled out of an investment because you thought it… Read the rest
November 4, 2014

Principle 10: Keep balance

S imilar to the ninth principle on diversification, CFA Society Thailand president and valuation expert Andrew Stotz wants us to “drive with the safety of an airbag.” His version of a financial seatbelt—owning 10 stocks at a time—may not always… Read the rest
October 30, 2014

Principle 9: Diversify to reduce risk of loss

I f you’re a frequent reader of personal finance books and articles, the word “diversify” in its financial context should not be new to you. This is one of Andrew Stotz’s most valuable principles when it comes to investing your… Read the rest
October 28, 2014

Principle 8: Keep your financial costs low

A gents, brokers, financial analysts; practically everyone in the financial world is making money on their investors’ cash. When you buy insurance, your agent gets a portion of your payment. When you join mutual funds, fund managers take money out… Read the rest
October 23, 2014

Principle 7: Start building wealth through savings

W hat is your attitude toward your paycheck every month? Do you consider it your reward for working hard and your key to unwinding through shopping, eating out, and the like? Or do you immediately feel that your salary is… Read the rest
October 21, 2014

Principle 6: Avoid big mistakes, especially early in life

E ver heard that advice that says don’t be afraid to make mistakes while you’re young? Or quotes telling you to be “young, wild, and free”? I have to tell you, after listening to award-winning financial analyst Andrew Stotz’s thoughts… Read the rest
October 16, 2014

Principle 5: Do it yourself

P ros don’t always work for you…Internationally acclaimed financial strategist Andrew Stotz encourages people who have time, knowledge and interest to handle their own assets rather than paying fund managers hefty fees to do it for them. After all,… Read the rest
October 13, 2014

Principle 4: Be realistic about stock market returns

I f you’re under the impression that investing in the stock market is your ultimate ticket to the life of the rich and famous, please wake up. Dreaming big is not a problem in the world of finance, but assuming… Read the rest
October 10, 2014

Principle 3: Time really is money

T ime is of the essence. Time is golden. The concept of time as man’s most priceless asset has been around since the days of our earliest ancestors. But Investing-in-Asia expert and financial literacy advocate Andrew Stotz’s take is more… Read the rest
October 7, 2014

Principle 2: Simplicity beats complexity

H ave you ever dealt with documents overloaded with numbers, jargon, and charts that you can’t just seem to make sense of anything? Or have you had a shopping experience for a gadget where your salesman gave too many information… Read the rest
October 4, 2014

Principle 1: Create a written plan and follow it

A lot of people love creating lists. Just like a huge chunk of the world’s obsessive compulsive population, I plan my holidays ahead, list down in order my grocery items for the week, revise my life’s bucket lists from time… Read the rest
June 3, 2014

Can analysts predict the future direction of a stock?

After seeing that analyst target prices in Asia are inaccurate, the obvious next question was whether they could at least predict the direction of the stocks they cover so intensely. I was an analyst for most of my career but… Read the rest
May 27, 2014

Target Prices Destroys Value

When managing your portfolio one important thing to consider is to limit the downside. To limit your downside is very important for your terminal wealth, and your terminal wealth is what matters. If you can limit your downside, the compounded… Read the rest
May 20, 2014

Do YOU Know How to Make Money from Dreams and Nightmares?

Know the ‘Dream Factor’ to make money in stocks Understanding where stock market returns come from in Asia’s markets One dollar became 258, but where did it come from? If an investor put one dollar in Asian stock markets (excluding… Read the rest
May 13, 2014

Stop Wasting Time, Start Adding Value – Value Drivers, Risk

In this third part the focus will be on how changes in risk affects your portfolio return. Inside you’ll find evidence that challenges the conventional wisdom that “High risk = High return” and instead shows that you can get Low… Read the rest
May 8, 2014

Stop Wasting Time, Start Adding Value – Value Drivers, Growth

The second and third part will focus on value drivers, namely growth and risk. In this second part I’ll talk about growth as a value driver and answer the question: Can you make money by surprise?
April 29, 2014

Stop Wasting Time, Start Adding Value – Forecasting

In six parts I will teach you how to Stop Wasting Time and Start Adding Value on the two topics: Stock picking and Managing a portfolio.This first part will focus on forecasting and will give you insights regarding how… Read the rest