Investing Rule #1

Ironically, I hate to read books since young, be it story books, text books or any kind of materials. However, few years back I chanced upon 'The Warren Buffett Way', and after reading it, I was captivated by investing and was totally mesmerized by Warren Buffett's charisma and words of wisdom.

There is no turning back. Since then, I have been feeding on all kinds of materials, be it books, articles and websites. As long as there is the slightest correlation to investing, I will get my hands on it and digest them with great enthusiasm.

Having vested in the stock market for these years, I will like to share the golden rule of investing with you. This golden rule had stood by me all these years and served me greatly in times of both good and bad. In fact, this rule was uncovered during my first investing book and was taught by the Sage of Omaha, Warren Buffett.

          Investing Rule #1 = Never Lose Money

          Investing Rule #2 = Do not forget Rule #1

The above rules are very true. Capital preservation is of utmost importance to investing. Face the fact, at the end of day, we invest our hard-earned money into companies for the purpose of growing our assets. So if we are not even able to attain the above-mentioned rule, then what is the purpose of investing?

Many people do not realise the impact of capital loss. Let me paint a scenario to you. You start your investing journey with $10,000 and hastily bought into a company with the entire sum without adequate research. Few months or few weeks later, or worse few days later, the stocks which you purchase is only worth $5,000. You panicked and you sold your stocks off to recoup the remaining $5,000. This permanent loss of 50% capital is disastrous.

Take the best investor on earth for example, Warren Buffett. He maintains a 20+% per annum returns over the past few decades. So even if the remaining $5,000 is given to him for investing, he can only earn back the initial $10,000 after around 4 years of hard work. How many 4 years do we have in our lifetime? Try making a few more mistakes which results in permanent capital loss, you can guess whether if you still have a chance to financial freedom.

I hereby urge all investors to remember this golden rule at all times. Always ask yourself if there is a great possibility of capital loss before you purchase any stocks. Be smart to step out if you sense danger.

Having said all these, I am sure there are still many who are willing to put in a $100 stake with the same probability of winning/losing $20 - I recommend this group to play big/small in a nearby casino. It is much simple and less time-wasting. =)

Remember this, you DO NOT lose money by forgoing money-making opportunities. You WILL lose money when you head for money-losing chances.

I will be sharing more of my investing experiences and rules in the new year ahead! Stay tuned!

Sector Comparisons Added

I have added a new section in my SP Chemicals report, which compares the related companies in similar sector. You may access it by clicking here. Really glad that I managed to complete the report by the end of year 2007!

Hope this provides more information to my readers. Any feedback or suggestions to improve my report or my site are greatly welcomed and appreciated.

Report Layout Revamped

I have revamped the layout of my research report. You may obtain the SP Chemicals report by clicking here. As stated previously, the objective of providing the report is to share my equity research knowledge. Violating the legal issues of copyright, etc. is definitely not what I am seeking.

Will appreciate for my readers to highlight me again if there are more issues.

Thank you.

Research Report Layout to be Amended

I received a comment from an Anonymous saying that the report template must be changed. As my objective is to share the contents of my research, thus I did not really pay attention to the layout. As such, I have decided to take down my report for the moment while I revamp the layout.

Apologies for the initial layout used.

SP Chemicals (S17.SG) Research Report

I have just compiled a research report on SP Chemicals (S17.SG), which is listed on SGX. I hope the report will provide good value and information to those who are looking for good-valued companies. You may obtain it by clicking here.

Any comments and feedback to the report is greatly appreciated. Please contact me for any queries on any items on the report, I will be glad to answer them.

Happy Holidays fellow readers!

Investing Basics

I first get to know about investing in year 2004 and my first ever e-newsletter sign up was from Investopedia. This is a good learning site and I urge all newbies to take a look. I have included the link under Good Reads.

Good Reads

I have added links for some good readings on the right column which have aided me during my investing journey. Please feel free to share any good articles or readings with me.

I will be publishing a report by the end of this year so that year 2007 ends with a good start of this blog. Cheers!

Birth of TYL Equity Research

This blog is created to share the fruits of my equity research with those with similar passion.

Stay tuned for the upcoming research reports!