Wednesday 8 May 2013

The Beginning

In the investing business, risk is guaranteed, return is not. 
~Bill Gross, PIMCO founder & Co-CIO 

The love & fallacy of money & investment

Well, the quote above by Bill Gross says it all. 

Everyone love money, and everyone love to make money. And if the advice from all the great business texts and the smartest investors are to be believed, investing your money is the best way to do it.

From the concept of compounding interest to the great advice from Warren Buffet of investing for the long term, it creates a fallacy that investment is all about return, return and return!

Well, pause for a while, and reflect on the above statement again.

Then think about the various speculations throughout the history of mankind that end up in tears fro the investors. From the tulip mania in the 1637 (http://en.wikipedia.org/wiki/Tulip_mania) to the dot-com bubbles in the 2000 (http://en.wikipedia.org/wiki/Dot-com_bubble), they were all the most “in fashion” thing to invest in back then.

Even in modern day history and closer to home (in Singapore where I struggled to purchase a house due to the crazy property boom), we have witness the same kind of scam, like the gold guarantee investment scheme. (http://www.straitstimes.com/breaking-news/singapore/story/ex-investors-gold-guarantee-gather-hong-lim-park-petition-quicker-acti)

Thus, if one thing is guaranteed in investing, it is definitely not return. But RISK!!!

The Purpose

The purpose of this blog is to highlight the risk of investing.

I try my best to deliberate and evaluate different trade ideas that I think is interesting.

I will also highlight the risk profile of each trade into: LOW/MID/HIGH, so as to tailor it into different risk profile.

In addition, I will regularly post interesting articles & links I come across which is useful to grow my investment knowledge.

Disclaimer

I wish to highlight that:

1)    The views and trade ideas I have expressed here are for my personal views and consumption. This is done so that I can refer back to what was on my mind when I wrote the article. It is not an inducement for anyone to invest or trade. The sole purpose is for me to keep an online record.

2)    Any fair value or ratings indicated in this blog are meant for sharing, educational and indicative purposes. It

3)    Due to the volatile nature of the market, I might and reserves the right to buy, sell, long, short any stocks or financial products without posting anything on the blog. This includes any trade ideas mentioned in this blog.

4)    I shall not liable and responsible for any actions of the readers.

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