James Cook University at Sims Drive

James Cook University at Sims Drive

Monday, November 12, 2012

My earliest stock market datas







Photo shows listed companies data from 1976 to 1981

I had been compiling data on the stock market since I started investing in 1990, which I innovated a system to pick the right stocks.

By studying the history of stock market movements, we can improve the chances of picking the right stocks.




Thursday, November 8, 2012

What type of stocks that give the highest returns?

Somebody asked Warren Buffet value stocks or growth stocks gave better returns?

Warren Buffet replied they are at the hip.

Peter Lynch made a career out of Chrysler. Peter went regularly to visit Chrysler to find the probability of it turning around.

If it declared bankrupt lots of jobs will be lost. It is seeking funding from the government.

Peter Lynch convinced the CEO Lee Iacocca had the ability to turnaround the company, so he put the highest amount of fund in the company. Later it multiply many times.

A lost making company which turnaround and grow usually gave the highest returns.

Many successful corporations were found during depressed time where everything is cheaper, like microsoft.

Asia Foods and Properties Ltd is in the cyclical industries.  It lost hundred millions of dollars during recessions, later when it turned around from 4.5 cents it moved to more then $1.5.


Investments in properties

Buying properties when the properties are run down. Which need lots of repairs and the prices were depressed and few want it.

You need to find good locations properties at depressed price.

You needed to spend lots of efforts calling contractors to repair and paint it nicely.

You can get good rental yield from the properties after spending  effort in cleaning, paint & repair it when the environment improve, it will get better response.

Of course you need to find a value for money contractors to fix it, as everything is broken, the owner can't sell because it need lots of time, expertise and efforts to fix it.

Take your time to find a good reputable contractor, it might save you lots of headache later.

It is better to get a contractor who specialised in their area, rather then a general one.

Each contractor had their area of expertise but might not in other area.

Locations is the most important factor in considering properties investments. When an area is growing with massive developments the demand will grow. Many professionals will be interested in the area.

When economy don't do well, a better location property will be easier to get tenants or buyers.