Tuesday, October 31, 2017

Interview with "Reader Who Uses The Scorecard Method"

I will like to apologize for the delay in posting. I had wanted to do a "Reasons to come for the Investing Workshop" post on Sunday, but it ended up sounding too HARD-SELLING, thus I reverted it to draft instead. However, the short publication got "crawled" into my InvestingNote page and some people seem to be quite turn off by it. I guess I made the right choice in turning the post into draft.

Anyway back to the main topic... 

This will be an interview with the "Reader" whom had supported me since late 2016. Not only has he read my blog regularly, he has also came for my seminars numerous times and followed my scorecard method since the "Enhanced Triple S Scorecard" days.

The reason I interviewed him was because I felt he was a bit different from the regular investors. Most investors seems to focus on news, financials or charts. But from my conversion with him, he get inspirations from observing "businesses around him" (Something I did at the start too) and understand how some of the businesses operate. I felt this was an X-factor that can make him a very good investor in time to come.

As for me, I am just glad that my sharing has helped people to invest.

Without further ado, let's get straight to the interview questions and his answers!

1. Tell us more about yourself.

Reader: I am 30 this year and working in the Public Service. Even though I had a relatively comfortable childhood, living below my means has been really helpful in my investing journey thus far (I've only been investing for about 2 years).

2. How did you get into investing?

Reader: I was inspired after looking at my parents' CDP statements.They had mainly blue chips, some of which they have held since the 1990s. The dividends which they had been collecting over the past decades inspired me to start investing.

3. What is your thought process when it comes to stock-picking?

Reader: My approach is very much skewed towards income investing. Besides dividend yield (which can be quite misleading), I also usually look at the payout ratio, EPS growth and other relevant metrics. I also try to read more about different business sectors to get a better understanding of how likely the company is able to grow due to the disruption in various industries these days. Some of the blogs which have inspired me are paullow investment journey, a pen quotes and thumbtack investor.

4. Understand that you have been using the scorecard since the Enhanced Triple S Scorecard days, how have it helped you in your investing method?

Reader: The scorecards have made me realise the importance of cash flow and cash holdings of the company with the metrics like free cash flow and ratios like P/FCF.

5. Understand you are also a Fundamental Scorecard website subscriber, how has it benefited you so far?

Reader: The fundamental scorecard has streamlined the process, where previously subsribers would need to input the figures on their own, now there is a one stop portal where you can see stocks that score highest on the Ultimate Scorecard and Full Analysis easily. I would recommend it especially if you are too busy to do your own analysis.

6. So far, what is your best investment and worst investment since you started investing/trading?

Reader: My best investment would probably be KSH Holdings which got me about 50% gains and I have sold it some time back. Although it did not pass the super scorecard at that time, I decided to invest in KSH because of their consistent dividends and cash flow.

Worst investments... so many to choose from. Probably Starhub or Singpost which taught me the importance of cutting losses and not to 'fall in love' with any stock even if they are 'blue chips'. Left my positions with about 10-15% losses (less after dividends).

7. Able to reveal which stocks are currently on your watchlist?

Reader: I've been looking at some real estate stocks such as Straits Trading and Low Keng Huat as well as healthcare REITs like First REIT and Parkway Life REIT.

8. Finally, any advice for newbie interested to get into investing/trading?

Reader: Although I'm probably not qualified to give anyone investing advice, when I just started investing, I was reading financial blogs and newspapers (you can read many financial newspapers for free at NLB). I believe in continuous learning and still read a lot of financial blogs till today. I think the most important part of investing is controlling your emotions (and also don't use leverage for investments).

If you are interested to know more about the Ultimate Scorecard or the Fundamental Scorecard Website, do click on this LINK to sign up for our 2nd Value/Growth Investing Workshop

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

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