In this post ,i am going to summaries the book :Small change, Investment made Simple by Goh Eng. Yeow. This book is part of the Straits Times Money Smart Series. As this book content is regarding the author thoughts about money and investment, i will be summarizing the point as follow.
source:goodreads.com
1.Health is more important than money, take care of your health
2.Money is a form of security, which reduce your worries and allow you to spend your times with people that matters most
3.Giving charity will increase our happiness
4.Buy experience instead of things
5 Remember to pamper yourself from time to time
6.Think positively and seize opportunity to get lucky, more luck=higher chance of becoming rich
7.It is never too late to achieve success, think KFC colonel Sanders who become big at the age of 66
8.Create a financial plan ,insure yourself and get a house, the house will appreciate over time
9.Invest early, no shortcut to wealth
10.list your asset and liabilities, deduct asset from liabilities and you will have your net worth
11.Set money aside every month to put into an ETF e.g. STI ETF,S&P 500
12.A Buy and hold strategy is the recommend strategy for investors
13.Understand a market well so you can seize opportunity if it comes
14.Buy low beta stocks. A beta of 1 refer to a stock that move similarly to the index. A beta that is higher than 1 mean that the stock in the index move more violently than the index(e.g. DBS rise 5 percent but STI ETF rise 1 percent).Low beta mean less than 1
15.Even warren Buffett failed to outperformed the index, so do consider investing in the ETF
16.There are many investment opportunities overseas, do consider other countries stock instead of Singapore Stock
17.The investment playing field are gradually levelling between big time investor and small time investor
18.Sin stock such as related to gambling, smoking and drinking can also be consider worthwhile to invest in
19.Look around and observed for investment opportunities ,you never know you may come across it
20.Invest in what you know
21.Watch major fund flow to know where to invest in and where to profit from it
22.Comes out with a list of companies that you wish to hold for a long term and the prices that you do mind paying for them. If they reach those prices, do consider purchasing them
23.Remember to have reserve cash in uncertain times to take advantages if opportunity present itself
24.Invest with logic and not emotions
25. Don't trust number too much also, look out for irregularities in company financial statement
26.keep the winning stock and sell the losers!
27.Check your portfolio from time to time
28.learn to control your greed
29. Don't be taken in by so call financial guru!If you would like to read the book do get it at your nearest library! Thanks for reading! Remember to dyodd!
