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Become a Better Investor by Become A Better Investor - 3d ago

The post Ask Ajarn Andrew #60 appeared first on Become a Better Investor.

Should We Compare NAV of Each Mutual Fund Before Investing? - YouTube

Get answers to your questions about investing and finance from Ajarn Andrew.

Today’s questions:

Should we compare NAV of each mutual fund before investing?

เราควรที่จะเปรียบเทียบมูลค่าทรัพย์สินสุทธิของแต่ละกองทุนก่อนที่จะเริ่มลงทุนหรือไม่

If you have other questions just leave them as a comment and I will answer them in the next episode.

To learn more about valuation from Andrew check out the Valuation Master Class.

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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The post ‘Try Before You Buy’, If at All Possible appeared first on Become a Better Investor.

This post was originally published here.

The worst investment I have ever made in Thailand was buying land. I had the idea of building a house for my parents on a block in Cha-am, Phetchaburi province, at the southern end of the Kingdom’s central region.  

Don’t buy a home unless you really want to live there

After I acquired the land, my parents lived in the area for a few months on my suggestion because I thought it would be best for them that they get a feel for the area before building the house; it ended up being a good decision because they didn’t like the area at all.  

Basic questions to ask yourself before a cent is spent

In an ideal world, I would have let my parents experience the area before buying the land in the first place, but it was a good lesson. Nowadays, before making an important decision I ask myself two simple questions: “Is there any way to test it first before committing?” and “What would I recommend my best friend to do, if he was making the investment?” Other great questions I like to ask are: What don’t I know? What don’t I see? And what assumptions am I making that may or might not be true?  

What don’t I know? What don’t I see?

To emphasize the importance of these questions, a friend of mine started a business that sells nitro coffee from small mobile vans around Bangkok. He made the assumption that he would have few competitors due to the time and expense of getting started. Almost immediately after setting up his company, Starbucks started selling nitro coffee!  

Andrew’s takeaways – Avoid these mistakes to become a better investor

Try before you buy

Land is usually a very illiquid investment because when you want to sell it, it can be very hard to find a buyer, especially at the price you want. Therefore, it makes sense to do a considerable amount of research, but that research should be done before you buy the land, not after. 

Mistakes in this story 1. Failed to initially research
  • Inadequately researched type of investment 
  • Failed to test the investment thesis 

Learn about the six ways you will lose your money and how to avoid them here.

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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Become a Better Investor by Become A Better Investor - 5d ago

The post Ask Ajarn Andrew #59 appeared first on Become a Better Investor.

Factors Affecting NAV of Mutual Funds | อะไรคือปัจจัยที่สงผลต่อราคามูลค่าทรัพย์สินสุทธิ - YouTube

Get answers to your questions about investing and finance from Ajarn Andrew.

Today’s questions:

What are the factors affecting the NAV of Mutual Funds?

อะไรคือปัจจัยที่สงผลต่อราคามูลค่าทรัพย์สินสุทธิ

If you have other questions just leave them as a comment and I will answer them in the next episode.

To learn more about valuation from Andrew check out the Valuation Master Class.

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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The post Interview with Anutin Charnvirakul of the Bhumjaithai Party 2016 appeared first on Become a Better Investor.

This interview was from October 2016 when I sat down with Anutin Charnvirakul, the leader of the Bhumjaithai Party. What you find below is a summary of the hour-long conversation we had on Thai politics two and a half years ago.

Andrew Stotz and Anutin Charnvirakul

Key takeaways:

Working with those who think differently – Accept and respect all ideas. Back off if yours is not as good as someone else’s. Debate and see which idea reaches a dead-end first. In a democracy, majority rules.

On getting rid of corruption – When a politician is taking extra money, it’s like Robin Hood because the salary from being an MP is not enough to pay for the cost of maintaining their popularity. Raise the pay. Give the MPs a surviving salary. The money we will use to raise this pay is a lot less than the money that has been lost in the system.

The root cause of corruption – The reason why Thailand has become what it is today is because of poor education. Poor education makes people willing to sell their vote. Poor education makes people have less integrity. Poor education makes people ruthless. Poor education makes people selfish.

Background: Anutin Charnvirakul

After studying industrial engineering at Hofstra University in New York, Anutin worked for a while in the US before returning to Thailand to run one of the family’s businesses Sino-Thai Engineering and Construction Public Company Limited (STEC TB). The Charnvirakul family’s other large business is the fabricator STP&I Public Company Limited (STPI TB).

STP&I receives a World Class Company Award in 2015. From left to right: Anutin Charnvirakul, Masthawin Charnvirakul, Andrew Stotz, and Chavarat Charnvirakul.

In politics, Anutin has served as Deputy Minister of Public Health and Deputy Minister of Commerce. In 2007, he was one of 111 Thai Rak Thai Party executives banned from politics for five years. He partnered with Newin Chidchob to establish the Bhumjaithai Party, and in 2012 he took over the party leadership.

Democracy in Thailand: The best ideas should win

Is it important in a democracy to accept people who think differently than you do?

Anutin: In a democracy, it’s critically important that you accept all people’s ideas and approaches. Democracy means: “whoever has the better reasons, wins.” And if the reasons are all legitimate, the one reason that appeals more or sells more to the people will win.

I think democracy has to welcome ideas, thoughts, and methods from all the parties.

So one has to let go or compromise?

Anutin: If you’re talking about democracy, people have to obey the rules, which is the majority. If you’re talking about authority, people with the higher authority will make the rules. If people abide by the rules and are rational, they will have to accept it, one way or the other.

If I had the higher authority and people had ideas that reached the target, whereas my idea faces a dead-end, I would always respect their idea. Some people will force their idea because of stubbornness, but I am a result-oriented person and not the boss-is-always-right type.

How does voting fit into your idea of democracy, and what alternative voting structures may improve Thailand’s democracy?

Anutin: Our democracy system has to come through votes. Political parties are formed to sell their policies to gain popularity with the people. If the policy captures the people’s minds, then the people will work for you. So the democratic system has no other choice but to get voted by the people.

How does a country protect itself from politicians just giving people what they want, but those things may not be good for the future of the country?

Anutin: The first requirement is education. People from outside Thailand or people who oppose democracy will always blame the voters for selling their votes for money. It’s not true. The policy of each party is the major factor for winning the election.

The role of the constitution: Independent agencies have brought instability

What role should a constitution play in Thailand? What needs to be changed in this constitution to make it better for the long run?

Anutin: The constitution has always been the supreme law of Thailand. Thailand never had such a problem like this before the 1997 Constitution. Like it or not, there weren’t as many independent agencies as there are today.

Thailand was much more stable, and the system balanced itself. I never saw any political party in the past that controlled the election because of it being in government. If they did not do well or if they did not perform, they could come back in the next election.

Probably because of the excessive needs of the people of Thailand who’ve always had a negative perception of politicians, they try to find a controlling method to prevent vote-buying or to prevent inappropriate methods of coming to power.

You’re saying that the objective of the 1997 Constitution was to introduce independent bodies that would keep the politicians in check, but it didn’t work that way.

Anutin: It didn’t work that way.

Continuing on the constitution, besides independent bodies, is there anything else that needs to be changed?

Anutin: When we call ourselves a “democracy,” whatever the people decide regardless of why they voted as they did, everyone has to respect it. Votes are gained either through money or power.

In the first world, creating good policies is another kind of vote-buying. The fundamental thing is that you have to respect the voice of the people.

Corruption and politics: Not a one-sided issue

Regarding corruption and politics, how can we increase transparency and reduce the influence of money in politics?

Anutin: When you say “corruption,” don’t only blame the government side. You have to point the finger at the government’s counterpart. When there is no offer, there is no take.

Government regulations are fair enough to create fair competition. But people who want to have a better deal make a better offer.

If you believe in the supply and demand concept, you all enter into a fair competition through a tendering process and make a vow among your counterparts that corruption in the end kills. No one can survive alone.

I don’t really like my answer on this, but I feel that the question is very difficult.

Corruption comes from favoritism. When you’re in a certain position, you cannot favor any party.

Yes, but the way corruption is at this time is that a person uses his power and wealth and influence to get voted in; and then, he has an obligation to, now, distribute what he’s got to the voters or to the people who have helped him.

Ultimately, that’s politics. I’m going to vote the guy in who represents me, and my representative goes to the national government. He brings his voters the benefit of getting their road built in their district.

That’s pure politics. And if one MP from one region is better at getting benefits from the national government for their district, then voters would naturally vote for him.

But that’s not how it happens all the time.

Anutin: No, this is happening. Currently, this is happening. Every MP has a certain authority to bring wellbeing to his constituents.

Right. They have an obligation.

Anutin: This applies for all. The corruption part comes to the point that the MP brings work to his district, and then he takes money from his contractor who was selected to do that work. Even worse than that, is when that MP does not bring work to his home province. He has been allocated with a certain budget each year, say 50 million baht—this is the real system now—to bring to his home, to his district. But he waives that right and sells this right to the other MPs in a different constituency.

This is real life. This is why the country is kaput.

All MPs in Thailand will first have to favor their constituencies, their voters. No matter how rich you are, you cannot favor people only by giving cash. But if you are a wealthy and a more powerful MP, you have enough in your portfolio to buy other people’s rights; and when they are sold, they will be sold to the highest bidder. That’s why the system itself has fallen off the tracks.

Battling corruption: Raise the pay of MPs

So maybe the better question is, how do we reduce corruption in politics?

Anutin: Favoritism has been in the Thai’s people’s minds. But in the past, they favored people by their hearts. Now, this favoritism has a commercial value.

So with the example that I just brought up, all you need to do is simply say, “The budget allocated to one MP’s district is not transferable.” But I cannot understand why no one ever came up with that.

We should say, “To improve corruption and increase transparency those benefits cannot be transferred.”

Anutin: That’s one step. That addresses the first level of corruption. The second level is you can go to the contractor and say, “If you want to come to work in my constituency, you cannot make corrupt payments.”

So it’s greed? When that politician is taking that additional money, is it for them, for their house or is it for them to support their existence?

Anutin: It’s like Robin Hood because the salary from being an MP is not enough to pay for the cost of maintaining their popularity.

Singapore pays a very good salary and says, “If anybody engages in corruption despite making two hundred to five hundred thousand dollars in salary per year for being an MP, you’re going to go to jail.”

Anutin: Going to jail is already supposed to happen. Anybody who is charged with corruption; after the trial, he always goes to jail.

But you could easily argue that Thai jails aren’t filled with politicians.

Anutin: Because we can’t catch them yet. The thing to do is to raise the pay. Yes. I believe that the money we will use to raise this pay is a lot less than the money that has been lost in the system.

Youth in politics: They need patience

For citizens, how do we encourage more young and honest people to enter politics?

Anutin:  Coincidentally, I just mentioned that the constitution would have to promote all competent people who are willing to serve the country, give them enough protection, and give them fair competition to enter.

Let’s break this down. On the one side, you have wealthy people who want to enter politics, but it’s just too much personal information that they have to reveal and too much trouble that they could get into. I understand that.

But there are also quality young people who have beliefs. They could be good, honest people in politics. These people are involved in protests and demanding change. However, when it comes time for them to run to be an MP so that you can influence the political environment, they don’t do it.

How do we bridge that gap and get them into government to set policies?

Anutin: They’ve got to have patience. All the people who claim that they are already successful and they want to serve their first term of entering politics as a policymaker, they don’t have enough patience.

Judiciary: Justice must be blind

Let’s talk about laws and justice. What needs to be done to ensure a fair justice system for all in Thailand?

Anutin: Fair justice for all! The answer is in the question. Today, it is not fair justice for all.

So what needs to be done? How do we achieve that? Why don’t we have it? And what’s the key to how we get closer to that. You’re never going to be perfect…

Anutin: The people involved are supposed to remain fair and neutral, but they don’t do that. They take sides. Prejudice—they’re putting personal feelings into their duty. You’ve got to be neutral. This has never happened in the past. This just happened recently when the people who have to give judgment don’t stay neutral in their duties.

Education: Improvements are needed to improve democracy

Let’s talk about the objective of education and how we could improve education. Is education an important factor or not?

Anutin: We have to make people who are successful students, those who are brainy, to not only focus on being a successful businessperson, not only focus on being rich after graduation. They should believe that we are not the only generation who lives in this country. They should pass on their greatness to other people.

In Thailand, it’s the opposite way. People who score last in their class become teachers. People who are top in their class go to whatever field they want to be in except teaching.

Isn’t that everywhere? Isn’t that also in the U.S.?

Anutin: I think, in the U.S., people dream of being researchers and professors. When they succeed, they teach. It’s not only in the U.S. but in the First World.

But the irony is that teachers have much more respect in Thailand than they do elsewhere. Are you telling me that if respect were based upon competence and all that, then, they would get less?

Anutin: Based upon tradition, based upon religious beliefs, in Thailand a teacher is as highly regarded as the parents.

So how do we fix this? Thinking about it in terms of democracy, how do we improve our education to make a better democracy?

Anutin: People who graduate from education degree programs have the highest numbers. This year (2016), more than 80,000 people graduated with an education major. We have too many teachers but of lesser quality. They don’t make enough money. If they have nowhere to go, they become teachers with the least pay; and they don’t teach well.

Thailand tries to be global with education. Now, in many places even in the provincial areas, they try to follow international standards, but the infrastructure available in the country is not supportive.

Most of the people in the provinces cannot access the Internet. And we just assume it’s ok to give them a tablet computer. Each year, the Ministry of Education procures computers made in China and sends them to all the community schools, where with only one usage they become trash.

I think that to improve, the government leaders have to be alert that the reason why Thailand has become what it is today is because of poor education. Poor education makes people sell their vote. Poor education makes people have less integrity. Poor education makes people ruthless. Poor education makes people selfish.

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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The post Single Stock Not Best Choice for Long Position on Macro Trend appeared first on Become a Better Investor.

This post was originally published here.

I invested in a company operating in a dominant position of its segment within China’s processed–food chain. I liked the investment idea based on the theme that processed food consumption typically rises alongside a country’s rise in income and urbanization. We see this play out when branded products on the shelves of the modern food retail networks replace wet markets, butchers and greengrocers (produce markets). 

Business model in one country may not work in another

This investment theme had worked very well in Europe around 20 years earlier. Back then it was more about industry consolidation and increased raw-material-pricing power. China appeared to have a massive, organic market for the taking.  

Long list of good reasons for investing can make investors blind to the bad

The main points on which I was basing my investment were: 

  • The company was already operating in its home market with scale advantages and market share in the early stages of the industry’s development. 
  • Its position relative to customers was on the comfortable side of one-to-many. There were even benefits of customers consolidating their own industry in a massive conversion of traditional localized players to a modern branded and national platform. This rapid modernization accelerated the drive to reach every urban wallet in tier one and tier two Chinese cities.  
  • The company was hitching a ride to a more expansive distribution channel. Its move could hardly be better. It could let the consumer brand owners deal with growth, brand goodwill, and marketing expenses. All it seemed to need to do was budget for expansion to match its customers’ volumes and keep the product quality good enough not to be rejected. 
  • Its position relative to suppliers was also favorable. It was the main buyer from several producers of what was largely a by-product or discarded waste product. 
  • There were no competitors using its technology in the domestic market, certainly none at the same scale, so the company had major market advantages. 
  • Already operating in China, it was running at the lowest point of the international cost curve. Foreign competitors entering the market would have to be prepared to subsidize their China ventures for years to gain serious market share.  What did it matter?   
  • This company was trading in the stock market at a very low price-to-earnings ratio (PE) multiple. If the international players drew attention to their activities in China, this company would only be undervalued. 
  • The company clearly had growth, but its margins were super impressive: EBITDA was more than 40%, especially when compared to the low-capital-intensive production and the low volatility of demand from consumer growth. Consumption per capita was tiny compared to every other country at higher levels of per capita income. 
The positives outweighed the doubts

This stock was one to buy and lock away, for sure! Well, that’s not how it turned out. With so much in the future looking so favorable, it was easy to overlook the high proportion of variable costs, especially fuel.  Sales were up, margins were high, so why be concerned with operating leverage?  

After about two years on from listing, management appeared to be delivering consistently. Enough in fact to overlook murmurs of the controlling shareholder and chairman dabbling in property ventures and the loans to directors that were rising over time. Other investors by this time had been reacting favorably to the story. There was a nice re–rating of the PE multiple. Earnings and price had favorable momentum and the brokers who covered this mid-market company loved the stock. 

But then, the momentum broke. 

Penny drops as management’s dark deeds and subsidiary failures hit main company

The main shareholder had been more than dabbling in other business activities and more than just borrowing funds from the company. Furthermore, other company ventures were rapidly becoming liabilities and infecting the core business.  Worse still, material parts of the company’s business simply did not exist. The auditors, it turned out, had been complicit and, for whatever reason, chose not to speak truth to power, or in this case, patron, and went along with the deception. 

Amid tainted-food scandals, clean firms flourish but buyers walk from this one

Meanwhile, the branded food processors were derailed by Chinese food-tainting scandals. The trends in consumer income, urbanization and modern distribution networks all continued to grow in quantum leaps, but this company’s products and share price were no longer rising in line with those complementary conditions. The trend could continue happily without this company or its suppliers. Consumers always have the ability to change their tastes and preferences. 

The stock went from a home run to only one cent on the dollar. It can happen so easily when you’re busy doing other things. 

Emotional about stock, investor ignored ‘lover’s’ flaws

When we fall in love, we are willfully blind to the defects in the object of our affection. Picking stocks or owning companies can never be a love affair. There can be passion but only if it is a metaphor for our determination to be thorough in our research and mindful of the shortcomings of our own assumptions. But even then, a single company is rougher territory than the maps we draw in our minds of macro trends. 

Andrew’s takeaways – Avoid these mistakes to become a better investor

Corporate governance damage can come out of nowhere

Corporate governance events, where managers or owners act against the interest of minority shareholders, can happen with any company. There are two main types of corporate governance situations. The first is where the market is already aware that the company has poor corporate governance. This knowledge would come from observing the actions of the owners and management. The second case is when corporate governance events surprise and come from out of nowhere. 

Much less is lost when bad corporate governance is already ‘in the price’

If a company is already known for its poor corporate governance, then we can say that this is “in the price”, meaning, bad corporate governance in the past has depressed the price of the stock. Many investors would avoid this stock, but some would be willing to trade on the belief that the price cannot go any lower. They believe that investors have overly punished the company’s stock price and there is a chance to make money with the stock going up. 

The corporate governance event that matters is the one you won’t know

But the corporate governance event that will hurt the most is the one that happens at a company where nobody expected it. This pain is because it will have the most damaging impact on share price when that event hits the market. This type of situation is almost impossible to detect before it happens. And you cannot always rely on financial professionals to warn you. There are various reasons why they may not raise a red flag, even if they start to get suspicious. 

A stop loss is one option to protect against corporate governance events

Though most long-only fund managers are not interested in stop loss as a risk management tool, it does have some value in the case of corporate governance. One idea is to set a stop loss that’s deep enough that it would only be triggered by a serious bad corporate governance event. In my case, since I view stocks more quantitatively these days, I am okay with putting on a stop loss on each stock when I buy it. When the stock price hits the stop-loss price I sell; it doesn’t matter to me whether it is a corporate governance event or some other negative factor. 

Mistakes in this story 2. Failed to properly assess and manage risk
  • Failed to consider cultural issues (in Asia, saving face, fear of giving bad news)  
  • Lacked influence over management 
3. Driven by emotion or flawed thinking
  • Let emotions drive their investment decisions 
  • Got too emotionally attached to an investment 
4. Misplaced trust
  • Failed to review a person’s history and references 
5. Failed to monitor their investment
  • Failed to review investment strategy regularly 
6. Invested in a start-up company
  • Expected idea from other country or region to work

Learn about the six ways you will lose your money and how to avoid them here.

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

Read more articles like this on Become a Better Investor.

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Become a Better Investor by Become A Better Investor - 1w ago

The post Ask Ajarn Andrew #58 appeared first on Become a Better Investor.

What is NAV (Net Asset Value)? | อะไรคือมูลค่าทรัพย์สินสุทธิหรือNAV - YouTube

Get answers to your questions about investing and finance from Ajarn Andrew.

Today’s questions:

What is NAV (Net Asset Value)?

อะไรคือมูลค่าทรัพย์สินสุทธิหรือNAV

If you have other questions just leave them as a comment and I will answer them in the next episode.

To learn more about valuation from Andrew check out the Valuation Master Class.

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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Become a Better Investor by Become A Better Investor - 1w ago

The post Ask Ajarn Andrew #57 appeared first on Become a Better Investor.

What are Treasury Inflation Protected Securities (TIPS)? - YouTube

Get answers to your questions about investing and finance from Ajarn Andrew.

Today’s questions:

What are Treasury Inflation Protected Securities (TIPS)?

อะไรคือTIPSหรือพันธบัตรชดเชยเงินเฟ้อ

If you have other questions just leave them as a comment and I will answer them in the next episode.

To learn more about valuation from Andrew check out the Valuation Master Class.

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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The post Hard Lesson About Compounding – Could Have Been Better with Coke appeared first on Become a Better Investor.

This post was originally published here.

As an excited 17-year-old who had saved up a little more than US$2,000, I wanted to buy some stock. I held small amounts of two other stocks at the time, so I purchased Coca-Cola shares with the money I had saved.  

Ignorance is not bliss when missing big future interest

I don’t know what I was thinking when I sold the Coke shares around six months later, ignorant of the importance of “buy and hold” investing and the magic of compounding interest. I lacked any education about the market and would have to learn as an adult about compound interest and “buy and hold” or “passive” investing. 

Could have made 4,000%+ with investing know-how

It was a major error to sell the shares. Using a compounding calculator, that US$2,100 would be worth US$99,880 today. As another illustration, in 2012 Coca-Cola reported that just one if its $40 shares purchased in 1919 (with dividends reinvested, meaning compound interest comes into play) would be worth US$9.8 million today. 

Ignoring compounding means broader portfolio loss

At the time, if I had known about the power of dividends and compounding them back to reap interest, I would have amassed a decent-sized portfolio a lot sooner, which means more time over my lifetime for compound interest to work its magic.  

I recommend that all “newbies” read the top books on investing, as well as more simple sources, such as Kiplinger’s Personal Finance, and Money magazines, to educate themselves.

Andrew’s takeaways – Avoid these mistakes to become a better investor

Not investing can be as big a mistake as investing

Probably the most valuable lesson in investing is to stay invested over a long period. Give the compounding effect time to work in your favor. Most people get this wrong. They fail to realize that the benefits of compounding start to accrue only after 20 years. Very few people see their time horizon in decades; most see it in days. 

The importance of education

Most young people are not taught the principles of compound interest and therefore never take advantage of it. Our society would be much better off if we just invested $10,000 into a passive fund at the birth of every child. At 8% per year, this would grow to be $1,000,000 by the time they are 60 years old. Kids around the world would be millionaires upon retirement. Unfortunately, very few people have that foresight. If you don’t read this, you could end up living “in a van down by the river”.

Mistakes in this story 1. Failed to do their own research
  • Inadequately researched type of investment 
2. Failed to properly assess and manage risk
  • Had no exit strategy for when things went wrong 
  • Failed to set a stop-loss and follow it 
3. Driven by emotion or flawed thinking
  • Failed to invest in a familiar, good idea 

Learn about the six ways you will lose your money and how to avoid them here.

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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Become a Better Investor by Become A Better Investor - 1w ago

The post Ask Ajarn Andrew #56 appeared first on Become a Better Investor.

Should I Buy Individual Bonds Directly or Through a Mutual Fund? - YouTube

Get answers to your questions about investing and finance from Ajarn Andrew.

Today’s questions:

Should I buy individual bonds directly or through a mutual fund?

เราควรที่จะซื้อตราสารหนี้รายตัวหรือนำไปลงทุนในกองทุนรวมตราสารหนี้

If you have other questions just leave them as a comment and I will answer them in the next episode.

To learn more about valuation from Andrew check out the Valuation Master Class.

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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Become a Better Investor by Become A Better Investor - 1w ago

The post Ask Ajarn Andrew #55 appeared first on Become a Better Investor.

What Factors Affect Bond Prices? | ปัจจัยอะไรบ้างที่ส่งผลต่อราคาของตราสารหนี้ - YouTube

Get answers to your questions about investing and finance from Ajarn Andrew.

Today’s questions:

What factors affect bond prices?

ปัจจัยอะไรบ้างที่ส่งผลต่อราคาของตราสารหนี้

If you have other questions just leave them as a comment and I will answer them in the next episode.

To learn more about valuation from Andrew check out the Valuation Master Class.

DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.

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