Money work for me

Wednesday, 25 December 2013

Road To Financial Freedom Step 4

Every investor may make some mistake for the stock they pick even what so call fund manager.
Thus, after some exercise of Investing , we may realise sometime things just not work in our ways. We have to find the root cause and learn where the mistake come from and manage it. Over the time, the dollar and cents result will be the final judgment.

Step 4	Fact Finding

DY must higher than FD, More importance is consistency pay out
Div must have, But more importance is DPS can not be higher than EPS.
PE best is below 5, But more importance is EPS must increase gradually.
Sales revenue increase, But more importance is credit days outstanding must be lower than similar market
DE must be lower than 1 ,But more importance is Business prospect must be promising.
Share buy back is good, But not for Director gain only
Having Good Fundamental, But more importance is must have daily volume to support
Everything look fine, most importance is management care for shareholder interest

Monday, 2 December 2013

Road To Financial Freedom Step 3

Step 3 - Reinvest To Compound Growth Stock.

Once you have list out your watch list ,after further analysis on the stock , then just ACT.
Remember you get to do like a Doctor. To have a check list with you in able to understand your stock must be in Healthy condition. If you are too busy. What you need is only a monthly check list will do.
If you find out some stock is sick, Dispose it and change to much healthy stock. In other words, reinvest what you have dispose to compound growth stock.

Example of Check List.

1	Dividend Pay Out Ratio>30%
2	Dividend Yield > 5%
3	Return on Equity (ROE) > 15% for 3 years
4	Net Profit over total revenue ROR > 10%
5	Return on Asset (ROTA) > 10% for 3 years
6	PE less than 8
7	Share buy back
8	Share/NTA < 1 ( under valued stock )
9	Current Ratio
10	Acid Test
11	DE ratio
12	Credit day Outstanding< 60 days
13	Bonus issue
14	Key Shareholder enquiry / dispose ?
	Share holding
	Average total cost
	Market Px
	P & L
	P & L By %
	% of allocation of fund
		2013	Nov
	Total Investment	XXXXXXXX
	Total ROI	YYYYYY	18.89%
	ROI from Dividend	ZZZ	5.1%
	ROI from capital	CC	13.81%

Saturday, 30 November 2013

Road To Financial freedom Step 2

Once you have your list of Fund allocation. What you should ask is -- where should I invest . All people have different kind of experience ,expectation or preference.Some may like commodity product ,some may like property, or some may like to start their own business, or some may even like to keep their money under their bed or just keep in the bank to enjoy interest. For I still prefer to invest in Share Market but need to analysis fund allocation before invest.

Thus, Step 2 List out watch list.

Again, is very personal. The type of investment is very much depends within your risk tolerance.
I will list out two type of stocks to monitor and analysis before invest.

1. High DY with proven record and the business is at stable situation.
2. Share Buy Back stock with the condition of the company is CASH rich.

Hope with this move ,It can bring me more than 12% compound gain annually.

Thursday, 28 November 2013

Road To Financial Freedom Step 1

Today 28-11-2013. Take a day off from works.
After seeing a lot of excellent posting from blogger investor.
I realise that a good investor must have discipline and know what direction they are heading to.

Let me start something from myself and shown what I know.....

First of all....

Step 1. To understand Your Fund Allocation.

EPF              54%
FD                19%
Insurance      13%
Unit Trust       1%
Share            11%
Cash               2%
-------------------------
                    100%

We have to understand the investment have direct respond to Market Risk. Thus, your age, your fund size and your risk tolerance have to carefully take into account before investment.

Eg. Just imagine ,if you are the only income earner for whole family which have to support parents,kids,... etc. Can you do the same investment as a young man with no family burden and enjoy high income ? The answer is Yes for people like Bill gate but Not original person like me.