Look Well into the Matter of Investment by Sean Hyman

Sean Hyman, Editor of The Ultimate Wealth Report, urges investor to look well into the matter of investment by examining companies on three dimensions:

1. Fundamental analysis -- look at how strong the company is financially;

2. Technical analysis  -- look at the current pricing of the share; is it under-valued, fairly-valued or over-valued? For example, RSI < 30 = cheap; RSI > 80 = pricey; P/E <8 = under-priced; P/E>24 =over-priced; P/E=16 = fairly-priced.

3. Sentiment analysis -- be greedy when others are fearful, and fearful when others are greedy. Avoid the love money. Move in and out of stocks at the right timing according to rational thinking rather than greed. 


Be greedy only when the time is right. Indeed it takes great discipline to resist following the crowd and act rationally. According to Sir John Templeton, "To buy when others are despondently selling and to sell them when others are avidly buying requires the greatest fortitude but pays the greatest rewards."

The Most Important Factor When Investing In a Company by Peter Lim

"The most important factor to consider when investing in a company is the person running it; you look at whether the person is honest, and whether he or she is master of their trade. It works, it's a tested method of assessing companies." -- Peter Lim

(Source: Page 3, The Business Times, 16 July 2007, "Former 'remisier king': equities still have legs" by Teh Hooi Ling. Mr Peter Lim, formerly known as the 'remisier king', is a billionaire.)

Three Golden Rules by Teh Hooi Ling

The secret to winning at the winning game of shares investment is staying the course with the following three golden rules:

1.  Consistently invest in a diversified baskets of stocks that represent the real economy -- especially when prices are cheap.

2.  Don't bail out at the worst of times. Then, you will not get a fair value for the businesses that you own.

3.  Try to minimize your cost as much as possible. All the more you should buy when you see businesses going on sale at a cheap price during depressed market conditions.

(Source: Page 33, The Sunday Times, 20 April 2014, "How to win at a winning game" by Teh Hooi Ling. The author, a CFA charterholder, is head of research in no-management fee value fund mananger Aggregate Asset Management.)