Meeting the CEO, Executive Chairman & Managing Directors & Presidents of Listed Companies

Over my 20 years of extraordinary investment experiences. Some of the most interesting and important ideas were meeting the top hanchos of the Listed Companies.

I used to stay at least half hour after the Annual General Meetings or Extraordinary General Meetings to dicsuss with these top leaders of listed companies.

I learned lots of things about the future and heatlh of the listed companie or then just reading their reports.

They may not able to divulge too much info because of the SGX rulings on insider info, by talking to them, can feel are they confident or not the future of their companies they are running.

Talking to them is one of the best indicators of the companies future directions and learned some new investments ideas with the leaders of the industries.
 

You got to prepare beforehand what you want to ask about the companies, so as to probe deeper into the companies you want to invest.

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How to find stocks that multiply a few times

THIS SITE HAD CONTINUAL UPDATES.

The story in the book, Finding Winners by Richards L Evans, is a constant reminder.

How he lost a bundle in a stock Magnavox, which was at that time popula, glamorous and had a good following by stock analysts.

And another story of a chemist who used to look for stocks that are out of flavour and depressed. How the chemist ploughed through a lists of stocks that were depressed and made new lows, which funds managers dumped for unfavourable outlook.

How he picked cyclical commodities stock, Texas Gulf Sulphur which was temporary hit by earnings problems. He kept buying it when it went lower.

Subsequently the stock & earnings recovered and he made millions out of it.

The stock Magnavox, which had he brought dropped 94% and the stock which the chemist had brought Texas Gulf Sulfur when up 2700%.

A classical case of what Warren Buffret described, to buy quality stocks hit by temporary problems,Texas Gulf Sulphur was a case of a distress stock to a turnaround stock, and from a turnaround stock became a growth stock.

Peter Lynch felt that stock picking is more an art than science, if it is a science accountants will be the richest men.

A person who study history will do better than a person who major in accounts. Because a person study history will study how companies trade in the past.

Gerald Loeb in his book "The Battle for Investment Survival"

"It is important to stick to issues which in past times of bullish enthusiasm have had active markets and which can be expected to have active markets again. However, at the time of purchase they must be low -rated and unpopular, with their prices down and discouragement about their propspects quite general."

Gerald loeb use to said in his book put all your money in one best stock.

The secrets of picking stocks that multiply your money

Hope to share what I had learned from more than 17 year of investments experiences .

Take care of the downside, and upside will take care of itself.

Stock can lost 95% of it's value.

If it lose 50% of it's value, it needs 100 % to recover.

Mature stock usually start from small cap, so the probability of multiplying your earning in small cap stock is higher.

Turnaround stocks sometimes provide the best opportunities, as you can buy when they are at the cheapest level. Some of them, their business is cyclical in nature. Once their earning recovered they will move up a lots of times.

You can get the best bargain in loss making companies.

Some stocks like Venture Manufacturing, Asia Food and Properties & Golden Agri-Resources went up more than 20 times when they turnaround.

Loss making companies are likely candidate, for been takeover.

Invest in a stock where it's net tangible asset is more than their share price. It's chance of recovering from shock is better.

Stock tendencies to trade higher in an environment, where there's lots of liquidities.

When stock double it's price doesn't means it's overextend.

Share price went up due to their asset and earnings. Usually due to there's a lots of liquidities, where interests rate is low.

The best stock is never to sell it, e.g. Genting Highland Bhd. If you brought $3000 at it's IPO and hold on to it you are a millionaire by now, as it kept giving you bonus issues.

Do not overdiverisified. Concentrated on a few best stocks.

90% of people got rich from investing in properties.

Do not over leverage.

The best time to invest are during recessions.

Technical analysis, is just like seeing the x-ray of the company. If you invest at the lower quarter of the range , the chance of you making profits, is higher than you invest in the higher quarter of its trading range.

Buy good companies that are hit with one off big problem, where it's share price is at bargain level.

Where dividend yield is high, usually stocks are at their lowest levels.

In a bear markets, fundamental sound companies will drop less and the give more dividends.

The tendencies to follow the herd instincts is there, a lots of time when the good news is out the stock price tend to drop.

I felt the out of flavour stocks offer more value. Buy when not many people notice it when its cheap.

Top fund manager Peter Lynch had made a career out of Chrysler Corp. As car business is cyclical nature.

When Chrysler nearly bankrupt, as most people had brought their cars so business had gone downhill, it need some time for people to replace their cars, so Peter went to the company to thoroughly investigate the situations , will the company turnaround or went bankrupt.

He was correct Chrysler had chance to survive and later when the company turnaround. He made a fortune out of it.

Numerous good companies like Low Kheng Huat, Sincere Watch, Hwa Tat Lee, which are around for a lots of years, became penny stocks when the market conditions were very unfavourable. Had since multiply their value a lots of times after the market recovered.



To be continue.

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