My 20th Dividend Cheque
This is my 20th cheque since I started Value Investing in Mar 2010.
I was a late learner when it comes to Value Investing, started only in my 30s (pls don’t ask me my exact age). I wished I had started earlier but couldn’t as I do not even know such a way of investing exists. A few days ago, my mentor referred me to an article on an interview with Warren Buffett. The interviewer asked Warren why haven’t more people copied his investment strategy and Warren’s reply was “I don’t know. It’s not about high IQ.” (Read more at http://www.businessinsider.com/warren-buffett-on-value-investing-2012-9#ixzz26mg7mPzi). Warren puts it very well that Value Investing can be learnt but the sad thing is not everyone wants to learn. Most people want to take the easy way out, and they want quick money.
I must admit that I did put in a bit of effort to learn about Value Investing initially, attending program to learn the concepts, followed by monthly mentoring sessions, reading up on online forums and books, and analyzing companies after companies. My mentor, Ken, shared something with me that I thought was powerful. He shared the 3 steps that can lead to one’s success. First is to seek out the right knowledge, followed by having a strong support network and third is to take action.
The learning journey initially was tough as I was very new to the concept. Terms such as return on equity, earnings per share, PE ratio sounded very foreign to me. But I was glad that my learning journey was not a lonely one. I had a group of course mates to support me. After the program, we met up once a month. Every month, we analyzed at least 5 companies and discussed about their business model, management and the valuation figures. Three months later, after analyzing about 20 companies, value investing becomes easy. In May 2010, two months after value investing, I started to collect my first dividend cheque, and to date, after 30 months of practicing value investing, I collected my 20th dividend cheque and I look forward to my 40th cheque and the 100th cheque. Earning Disclaimer
“Please note that the material here is provided to you for general information and illustrative purposes only, or as descriptive case studies on how our value-investing principles may be applied. It is not intended to be and should not be construed as any form of general or specific financial advice. For the avoidance of doubt, we do not recommend or provide opinions on how or what you should or should not be investing in, and you should always do your own research and independent assessment before making any investment decisions, taking into account your own specific circumstances. If you require any financial advice on investments or any other financial matters, please consult the relevant professional financial advisers.”