Monday, November 6, 2017

There Are No Gurus...

Before I start talking about the main topic, let me conclude a happy event this month. Simple Investor SG and I had just completed our 2nd Value/Growth Investing Workshop. Although the room is a bit tiny, but everyone turned up. There was even an uncle that came all the way from Hong Kong, which was a nice surprise!

Back to the main topic...

This post is basically inspired by SG Thumbtack Investor's article.

He talks about people reporting huge gain this year and explains that if it was just a 1 year huge gain, investors should not be not happy. This is because they forgot about the power of compounding. He went on to explain that if an investor makes 20% every year for the next 35 years, he will make more money than someone who has inconsistent gains ranging from negative 10% to 60% every 5 years.

On the other hand in a Facebook group, BIGS World, there were people questioning about the probability of making 20% every year. But Brian posted a picture stating these superinvestors did.


This led me to the next question - What did they have that so many of us didn't?

I guess the answer is Discipline.

We lack the discipline that these superinvestors have. These superinvestors tend to have a fixed strategy and focus on it consistently.

However, many of us do not have this formof discipline and tend to be tempted about other forms of investment strategy.

Even for me, despite a bull year, I had make mistakes too.

1. Secura Group - I purchased this counter at 137 cents with conviction that I made the right choice, EVEN WHEN IT FAIL ULTIMATE SCORECARD. However, when the counter keep dropping, I continue to BELIEVE THE STORY I CREATED on this counter. Even after its GM and CEO was sacked/resign, I continued to believe MY OWN STORY. When the latest financial report finally showed the turnaround in profit I was looking for, it has to comment that there will be impairment for their recent acquisition of RSPL. So I decided I will end my love for Secura Group asap!

2. Traditional Blue Chips - Anyone who held traditional blue chip counters like M1, Singpost, Starhub, ComfortDelGro or SPH will be having a very "red" year. Generally, traditional blue chips did not do well this year with so many disruption coming from all around the world. Out of the 5 counters, I used to own 2 of them and I am still currently holding on to ComfortDelGro. Similarly, if only I stick to my Ultimate Scorecard strategy, my gains will have much more this year.

In short, I was lucky to have quite a few of counters rising more than 20% and about 2 multi-baggers this year. These gains offset my losses and also contributed to my last count of "18%" portfolio gain. If I have stick to my Ultimate Scorecard strategy, my gains will definitely be much more.

Thus, with this lesson learnt, I hope 2018 (in 2 months time) will be better.

Finally, I will end with this sentence - always know that "there are no gurus". Once you start thinking that you are, that is where you start making mistakes.

If you are interested to know more about The Ultimate Scorecard or Full Analysis, do visit the Fundamental Scorecard website for more information! Do sign up to get the latest scorecard of the SGX counters now!

Oh... and do remember, please like our Facebook page (T.U.B Investing) and follow me on InvestingNote

5 comments:

  1. Hi Tub

    I think it's good that we hv different people with different strategies offering to the public to see which method fit their investment philosophies.

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    Replies
    1. You and John certainly provided one which I think is really good out there in the market.

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    2. Hi B,

      Thanks for commenting and thank you for the compliment.

      Hopefully, in time. people will appreciate what we offer.

      Currently we are doing more backtesting and the results looks good!

      Regards,
      TUB

      Delete
  2. wow. I didn't know there's this BIGS world.
    I got no FB, does this mean I can't see and/or comment?

    ReplyDelete
    Replies
    1. Hi SG TTI,

      Yup. This meant that you cannot see their discussion.

      Just make a simple FB account. Haha...

      The time has come!

      Regards,
      TUB

      Delete