Reasons Why You Should Try To Read Business Times

I have a subscription of Business Times at the office which I get to read. A columnist that you should look out for is Teh Hooi Ling (left). She is a CFA charterholder as well as the writer of the "Show Me The Money" series of books. It's actually one of the rare few books on the Singapore stock market that is not trash. There is so much trash on the book shelves that I wonder why does not Ms Teh's book get sold out.

Her column on the Business Times is primarily on portfolio strategy, show casing portfolios of various constructs premise on different formulas. There are a wide range of investing ideas like investing in the biggest lossers, highest yield, etc. She tracks her portfolio fortnightly if I am not wrong and it is definitely worth a look. Borrow from your friend if you don't have a subscription.

Nonetheless, I believe that Business Times is not a value read like the Straits Times. I still believe that the Straits Times plus your checking of the SGX filings should suffice when tracking your portfolio. But Business Times does have very insightful opinion and commentary. Sometimes, very aggressive pieces get to print, raising questions at the financial regulation authorities for perceived lack of oversight.

A Thoughtful Column

Here is a very thoughtful piece from Kenneth Fisher (You can find the link at the side). What follows is extracted for your reading pleasure. Nonetheless, I will endeavour to comeup with 2 good pieces a week starting next week. One will focus on my portfolio monitor (Saturday Morning/Evening). The other will be general market thoughts. So do subscribe to my blog and let your friends know about it. I do appreciate comments!

Quarter-Century Mark

Ken Fisher, 06.24.09, 06:00 PM EDT
Forbes Magazine dated July 13, 2009

To avoid overpaying, use multiple metrics--not just price-to-earnings but price-to-sales and price-to-book.

This issue marks the 25th anniversary of my column. That's a long run in columnland. It's been a blast. Thanks for your attention. Reviewing my first year's columns, I pondered: What would I still say? What would I say now that I didn't then?

Reversion To The Mean

I happened to briefly glance through the book "Bogle's Guide to Common Sense Investing" and it raises a serious issue for me and to every stock picking individual. The underlying thread is that you should forget about selecting a good mutual fund, but rather invest passively and through the use of an Index Fund.

Reversion To The Mean

Why invest passively through an Index Fund? To do injustice to the book, he says that in the long run, no one style (value, dividend, sectoral) can beat the broad market in general. Every style that gains in one particular year will suffer eventually. Something called reversion to the mean. And due to cost efficiency and the ability to buy the broad market (S&P500), he recommends buying Index Fund.

Can I Beat The Market?

Investment Advice

1. Invest with money you do not need for the next five years. This includes setting aside some savings for emergencies (1 month minimum), unemployment (3-6 months worth). This are basically money you cannot afford to lose. Put them in a high interest deposits or money market funds so that they do not get eroded by inflation, a very real phenomenon.

2. Where you end depends on where you begin. Right now, with markets slowly

The Five Rules for Successful Stock Investing: Morningstar's Guide to Building Wealth and Winning in the Market

You can read about the book here.

If you did not do any finance, I think this book is a close as it gets to a textbook. A very useful book in the sense that it teaches you how to read a financial statement. Costs close to $30.00 but it is hard to find at the library.

The approach to stock picking is even more metric laden than Peter Lynch and it is little wonder due to them being from MorningStar. Morningstar has an impressive portfolio analyser and stock screener for American citizens.

What I like about the book