Take actions to moving forward

Recently I noticed that a lot of peoples around me are climbing up the corporate ladder or upgrading themselves; things such as promotions, further studies, fitness exercises, career switches etc. are happening everywhere.

I have to move on in order to success, like Chines saying you are driving your boat in the reverse floating river, if you do not make any progress to moving forward the water will push you to moving backward instead.

Here are some critical things I need to do for the following 3 months:

-          Start driving class

-          Regular exercise

-          Pass the CSCP exam

-          Refresh pronunciation course

-          Improving handwriting

-          Exploring 2^nd source of income

Only the strongest man can survive in the battle, if you are no. 2 you are a looser.

Mistake of sell profitable stock too early

I sold China Minzhong at 0.85 with about 40% profit (entry price 0.585) on 05.12.2012, but as of today (23.01.2013) the price went up to 1.03 (76% profit). Based on the trend the price may go up further and there are no fundamental reasons to sell this counter at this moment.

To correct my mistake and moving forward I would like to make below correction for my future trades:

1)      To invest with focus for profitable counters (at least SGD3,000 and above).

2)      Always set cut loss point to 10% if pick a wrong counter to protect investable capital.

3)      To let the profit run unless there are fundamental reasons or TA indication to sell it.

Benjamin Graham and Warren Buffett value investing strategy

Benjamin Graham's Intrinsic Value:


IR = Normalized EPS x Normalized PE ratio
Margin of Safety (MOS) = select stock selling for less than 2/3 of net current assets
Net Current Asset Value (NCAV) = Total current assets - Total current liabilities - Long-term liabilities


Buffett's Intrinsic Value:


IR = FCF / (R-g)
Owners Earning = CF op - CF Investing = Net Income + Depreciation - Capex - Working Capital


Buffett's 10 Investing Principles:

1. Businesses which have a repetitive consumer need with products that: wear out fast, are used up quickly, have brand appeal.
2. Businesses that provide repetitive services that people and businesses are consistently in need of.
3. Products that most people have to buy at some time in their life.
4. A business that we understand - stay within your circle of competence.
5. The quality of management, especially on the quality of leadership, operated by honest and competent people.
6. The industry's leader with substantial market share in its products.
7. Look for a strong economic franchise, long-term pricing power, high barrier to entry.
8. Predictability - in its business model and operating results.
9. Available at a very attractive price, selling at 33% discount on its intrinsic value.
10. High potential growth with consistent high growth in business and performance. Favorable long-term prospects.