SOS Secrets of a great investor?




WHAT IS THE 4 TESTS OF A GREAT INVESTOR?
Personality Picking style Portfolio Performance
       
Patience Earnings method Flexible to rebalance 10-15%p.a. for LT
Independence NTA method Cash:Equity (10-20 years)
Rational in biz sense Cigarette butt method   expectation
Flexible Dividend method    
Avoid FOMO Theme method    
  Invest during crisis only    
  Corporate restucturing    
  Takeovers    
  Combinations    
  Blue Chip/small cap     
YOU DON'T HAVE TO COMPARE WITH OTHERS
Set a reasonable time frame and reasonable target, and use comparison as a reference, not a real determinant of your perforamce because you start investing at different time, different capital, different time frame and different stocks.  Based on KLCI long term return is about 10-12% p.a.(for 10-20 years).
 

FAQ ON INVESTMENT AFTER GE14
Some friends asked what is your strategy now.  I would say, now is the time you take out your contingent "investment savings" to invest.  Meaning, if your portfolio is 60:40 (Equity:Cash), now is a time to go 90:10 (but still within you planned exposure).  Why? Many small and medium cap become a bargain because of post GE14 uncertainty.
Post GE14 uncertainty is more towards constructions and infrastructure sectors, and also toll roads and other things included in the new government manifesto.
Generally, its true, negative on construction sector as big mega projects are abolished.  But, this will impact more for big construction companies.  This may also reduce competition from China contractors (which is good for the locals).
Toll roads - still unclear at the moment. But, if we really follow rule of law, private toll operators should be reasonably compensated.  Why no news at the moment?

INVESTMENT CAPITAL TO BE INVESTED
This is normally your excess fund that you do not need it during emergency (2-5 years).  Balance your portfolio between Equity:Cash.

FINISH LINE
The finish line for investment is when you disposed all your shares and stop participating.  That is the day you actually calculate your gain or loss.  No one will know your gain or loss.  Enjoy the game.

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