Thoughts on Investment and Money built on a Christ-Centered Mindset

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"E" determines long run share price performance

Haha, ok wanted you to not cheat by reading on first.Well, it could be EARNINGS, or it could be EMOTIONS. Over a long period of time, share prices will reflect the underlying performance of a company, whether it is creating value for shareholders by making a decent return on its investments.However, over the very short term, it really is dictated by Emotions. Whether the prevailing mood in the room is of fear, or greed. Not mentioned much, but actually anger or fustration could play a part at ti...

September 1, 2021

Look for the person, not the job

Had the privilege to be part of a panel to give some advice to a bunch of international students considering a career and finance and investments. Actually, it does not matter what industry or work you might be considering. My top advice to young people looking for a job has alway been this: 1. Do not choose a job based on the salary you will get. 2. Do not join a company just because it appears great. 3. If you can, choose the PERSON, not the JOB. Especially at the beginning of your career, I ...

August 31, 2021

Dargan's 5-10-15 Rule for Finding Great Investments

I am often asked how I look for wonderful or amazing companies. I have shared several criteria in the past. But continuing from my recent post, I like to keep things simple where I can.   Barry Dargan  (Intermede Investment Partners) has a very simple 5-10-15 formula: He says, "One tool we employ in our screening process to find winners is the ‘5-10-15’ rule: annual average growth of 5% in revenues, 10% in earnings per share, and 15% and rising return on equity (ROE) over prev...

August 27, 2021

Simplicity is the ultimate sophistication

This is your mission, if you're willing to accept it.  Cue Mission Impossible music..... Actually, when it comes to investing, it is really not very complicated. In fact, it is mission possible, IF you keep it simple.  Your ENTIRE MISSION, is to value businesses (for me I only prefer the great ones), and pay much less for them than they're worth.  Once you realise that is all you have to do, it can be pretty liberating! "Simplicity is the ultimate sophistication" William Green Thi...

August 25, 2021

Profitable Investing is rarely comfortable

Why? Sometimes you need to step out of your comfort zone and go against the grain a bit.  BUT, and this is an important caveat, you must have a reasonable basis for WHY you are doing that. Not just because of hearsay, what social media is touting, or even what I tell you. Because only then can you STAY THE COURSE, especially when it gets uncomfortable. ...

August 20, 2021

Wanna know what is the best investment strategy?

Drumrolll please... You need to "see more...." "the best strategy is not the one that's going to get you the highest return. Rather, the ideal is a good strategy that you can stick with even in bad time." Joel Greenblatt Bottomline, there is no absolute "best", but there is one that will be most suitable for you! Which means it could be quite different from others. For me personally, I increasingly favour "growing pies" that are easy to understand and therefore estimate, rather than discounted ...

August 18, 2021

If you make an Investment Mistake, fix it QUICKLY

"One thing we've learned is, if it's clear that something is a mistake, is to fix it quickly. It doesn't get better while you wait." Charlie MungerWhere it pertains to money and investing, I think there are 2 key words here. CLEAR and MISTAKE.What constitutes a MISTAKE in the first place?What is NOT a mistake:Share price coming off (unless you are trading)Short term hiccups in performanceTo me, mistakes would be:When my reasoning for the investment is wrongWhen there is a structural change in th...

August 13, 2021

Are you willing to trek the long and arduous road?

These days we are often encouraged to think BIG, think POSITIVE, speak LIFE! All fantastic, and I do all of them myself. I even have a physical and digital vision board I look at all the time.We all want to be like King David, Joseph, Boaz etc.But, how many of us are willing to:- Face rejection (David was almost an afterthought as Jesse didn't seem to be interested in presenting him to Samuel initially)?- Fight the lion and the bear?- Be on the run most of your young adult life?- Have your wife ...

August 8, 2021

Deep diving into your investment

"You should understand every aspect of one business as if you own 100% but you don't actually run it. This causes you to be desperate to understand every aspect to protect your investment. That will give you a sense of a disciplined approach. That's how you truly understand business and investing." Li LuLi Lu goes on to say:"Investing is about predicting the future, and the future is inherently unpredictable. Therefore the only way you can do it better is to assess all the facts and truly know w...

July 16, 2021

Life is Messy

It may not appear so because of the social media "highlight reels" we live in these days. It used to be that you would look at the lives of the rich and famous and it would be "OK" because everyone else is "normal". However, today EVERYONE else seems to be living exceptional lives because we only see the happy, glamorous bits. Now, it doesn't feel OK anymore because even our friends are living the lives of the rich and famous! You might have seen pics of my garden, trimmed hedges and manicured ...

July 14, 2021

How to STAY on the Investment Train despite the emotional roller coaster

"I'm not emotional about investments. Investing is something where you have to be purely rational and not let emotion affect your decision making - just the facts." Bill Ackman Easier said than done!!! Was just talking to my coaching group about the stock market being sometimes a roller coaster ride, driven by the emotions of the market participants.  However, you can see that as a FEATURE of the market, and the PRICE of entry. If it were that easy, everyone would just get on and be done wi...

June 9, 2021

Discernment Part 3: Gathering and Assessing Information

Discernment Part 3 (extract from Pursuing God's Will Together by Ruth Barton). I've been camping on this for a while now, because we are always making decisions. Some minor, some impactful. Barton created a list for gathering and assessing info that I think will be helpful for you (slightly rephrased and summarised): 1. Does it fit with the overall direction and calling for your life?2. Which choice brings a sense of life, peace and freedom?3. What is your most authentic desire in relation to th...

June 5, 2021

What is RISK when it comes to investing?

What is "risk"?"In my view, the biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital. Not only is the mere drop in stock prices not risk, but it is an opportunity. Where else do you look for cheap stocks"? Li LuWhen I was in school, I was taught risk is the VOLATILITY of an investment. Or, how much it goes up and down in price. But if you think about it, the act of JUMPING up and down on the street is not necessarily risky. It is risky ...

June 4, 2021

Discernment Part 2

Notice without judgingFollowing on last week's post on discerment, according to Barton, the next key is to "notice everything pertinent to the situation...without judging."At a recent presentation, I also touched on how thinking / meditating is one of my favourite activities nowadays. Maybe I'm getting older. But when I meditate or think, I try and not pre-judge any outcome. Strangely enough, I've been getting what I feel are better insights!Sometimes the insights are about relationships I need ...

May 29, 2021

Elements of an Investment

"Table for 1 please!" In the socially distanced world, COVID has changed so many things we do or say eh!  But investing has not really changed. WHAT is an investment? MMM has the following to say: "...an investment is something that delivers value to you (and preferably does some good in the world as well), and produces products, services and eventual dividends that would make it worth holding for a lifetime even if you were never allowed to sell it." Mr Money Moustache Why did I share that...

May 27, 2021

Discernment Part 1

Have you heard of the "Prayer of Indifference"?I've been reading a book called "Purusing God's Will Together" by Ruth Barton and I thought one of the sections would be interesting to you. It is about spiritual discernment but could equally apply to your decision making process.There are several dynamics of discernment, but the first and foremost is becoming INDIFFERENT, in a positive way.Barton says it is about "interior freedom", where we are "free from undue attachment to any particular outcom...

May 22, 2021

Investment and Money lessons I would tell myself 20 years ago

A friend invited me to share with his youth group and I thought it would be a great idea to share what I would tell myself if I could go back in time!  I cover topics about my faith journey, finding a mentor, making career choices, how to handle money and how to invest. We also had a Q&A session where I answered questions ranging from retirement to cryptocurrencies etc. Quite a bit to digest! Enjoy! #money #invest ...

May 14, 2021

Businesses need to think long term. Investors even more so!

"industry, by nature is long term. And the fund management business, by nature, is short term.... The success of industry is that you always think long term...... you take the long term decision as if you were to be the owner forever, that is healthy for the industry and therefore our shareholders. " Kristian Siem If you're an active investor, you've probably not heard of Kristian Siem as well. That's because he is more of a businessman, but I have been learning that some of the the greatest in...

April 9, 2021

Short Term Randomness, Long Term Predictability

The shorter the time frame, the greater the randomness of the market. What do I mean? In the long run, the performance of a company's share price will be very correlated with the earnings growth of the company itself. However, in the short term, it is dictated by the moods of people who are betting on whether the share price will go up or down. The shorter the time frame, the more emphasis there is on trying to figure out what other market participants will do, and try to profit from that, rat...

April 7, 2021

Ruth Truth 23: Leaving a selfless legacy

Wow! After 22 posts from the book of Ruth, we are now in the final chapter and the climax of the story! Boaz is now offering to redeem Naomi's land (and Ruth) but there is someone in the way. Another kinsman redeemer who technically had the "1st right of refusal". There is actually a very beautiful story here of how Boaz is a picture of Jesus, that redeemer being the law (notice the 10 witnesses) and Ruth and Naomi being the Church and Israel respectivley. But that is for another day. However, t...

March 28, 2021

The trick to Investing is simple

"the trick is to get more quality than you pay for in price. It's just that simple." Charlie Munger It really IS that simple! Isn't that what you do in the supermarket or anything that you buy? Why would you part with your money otherwise? Unless you felt you would get more than you paid for? Why should investing be any different? You can:Get free intro investment training and articles: https://www.joshuafong.com Join the conversation at: http://bit.ly/FaithFinanceGroup...

March 26, 2021

Allow the stock market to surprise you

"Allow the market to surprise you." What do I mean? We talked about laser focus to help us select what IN OUR VIEW could be great investments. What we need to do next, is let the thesis play out. If you have taken the right steps so far, there should be a better than even chance that you have selected a decent investment. However, being the humans that we are, we often want the idea to work almost immediately. Unfortunately, that is now how investing works. Investing is a process of slowly, s...

March 25, 2021

Ruth Truths 22: He will not rest until...

"Wait......the man will not rest until he has settled it today." Ruth 3:18bWe talked about WAITING last sunday. THIS promise is why we can wait.Boaz is a picture of Jesus in the book of Ruth. I don't know if you've noticed, but Naomi's heart and attitude seems to have been slowly changing. Remember she was feeling very bitter initially? But in recent days she has been advising Ruth, and now has so much confidence in Boaz!Back to Boaz. Noami is now confident that Boaz will not rest until he has s...

March 21, 2021

Do stocks or real estate provide better investment returns?

Do stocks or real estate provide better returns?John Authers concludes: "The bottom line is that housing is restored to the position we might expect, with returns ranking between bonds and equities. Housing is lower risk than equities but, as Keynes surmised, once you look under the hood at volatility and expenses, it’s not the free lunch it may appear."What do you think?https://www.bloomberg.com/opinion/articles/2021-03-17/keynes-s-theory-of-property-risk-backed-by-endowment-dataYou can:Get f...

March 18, 2021

Ruth Truth 21: It's ok to wait

"Wait, my dauther, until you find out what happens......" Ruth 3:18aWow...the story is reaching a climax. If you have been following my series and reading the book of Ruth, you will know that effectively Ruth had made the first move and for lack of a better word, in my view, "proposed" to Boaz.But put yourself in Ruth's shoes. It is now an extremely vulnerable time!I am not familiar with the customs of the day, but imagine you've taken some action, and is now left hanging, not knowing what will ...

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