Tuesday, August 25, 2009
maybe
Wednesday, August 12, 2009
Investment Guide
| Criteria | Stock Market | Partner |
| Market Capitalization | · Buy a stock with big market cap (market cap of company = total outstanding shares X current share price) · Big market cap : well-established bleu-chip stocks with higher turnover · Info on the particular company is available in major newspapers | · Target a partner with small market cap (higher possibility) · Big market cap = well-demand = stiff competition = chances will be low · Background of the “TARGET” is not available in newspapers, need to filter it out yourself. Work hard on it maybe tru friends or hire an investigation if you can afford. |
| PE Ratio | · Should be lower than the overall market PER ( Current stock price / EPS of company) · Represent number of years to get back our money · Or Benjamin Graham’s suggestion : buy stocks with PER of lower than 15 times | · Should be higher than the overall market PER · Represent number of years you can really enjoy it without have to worry about your future |
| Dividend Yield | · Rule of Thumb Good company should have a dividend yield that at least equals or is higher than the risk-free return (based on fixed deposit rates) · Dividend yield = Dividend per share / Current share price · Most blue-chip stocks do have a fixed dividend payout policy than small company | · Rule of Thumb Good partner should have the ability to provide you the risk-free future. · In term of, extra shopping allowance, meal allowance, insurance coverage etc · And the most important is, provide the luxurious life! |
| Price-to-book Ratio | · Preferable to invest at a market price lower than the owners’ costs in the company · In fact & according to Graham, the max price one should pay for any stock is the price, which gives a price-to-book ratio no greater than 1.5 times. | · Preferable to invest at market price higher than the costs you have spent on it · In fact, you always ended up with low market price with higher cost spending on it during the investment process |
P/S : Above is my bull-shit skill only. Not a really guidance la. But for the stock market, is a good guidance for who are interested!
But my opinion is : find someone that really can make you happy and he/she willing to spend the life with you no matter what happen! Love is as simple as is. Dont try to screw your life by setting all the ridiculous criteria and it only will worsen your situation! “Brains are like hearts - they go where they are appreciated” Follow your heart, it is your true and right guidance.


