Should You Worry About The Stock Market?
One of the most common comment that I get often when conducting my Value Investing seminar is, “But the stock market is turning bad or the stock market is very high now”.
I usually smile because I know that most people just focus on the market movement, especially the indices such as STI, KLSE, Dow Jones, Nasdaq, Hang Seng etc.
Little did they realize that all these indices are actually made up by a selected basket of listed companies to represent the Market.
For example, STI, our local Singapore index is made up of only 30 companies, usually the large cap companies (with other criteria involved).
But yet there are 800 plus companies listed in the Singapore Stock Exchange on the Mainboard alone.
Are you telling me that ALL listed companies share prices are falling just because the STI Index falls? Or there are no good undervalued opportunities around just because the STI Index climb?
So should you worry about the market when it swings up and down?
Let take a look at this picture for an answer.
Blue line is a company I invested since 2007 and still vested till this point of writing.
(Tell those who say buy and hold is dead to hide)
Red line is the Singapore Stock market, STI.
What do you observe?
Especially from 2010 to 2014?
How about 2013 to 2014?
It seem that this company performance defied the market movement.
In fact, during Jan’s week of “Emerging Markets Correction”,
where STI and the regional market suffered 3%-5% correction due to increased “Tapering”, this wonderful baby of mine increased by 10%!
This company is a Compounder and she is only a baby compounder.
I have seen companies value compounded 50 to 100 folds over a period of 10 years, blasting the market way behind!
This is also one of the key reason why I am not worried about the stock market swings.
Because I have the Right Knowledge to focus on the fundamentals of the listed businesses I invested in based on,
Right Business Model (with wide moats), Right Management, Right Price vs Valuation (Margin of Safety), which we teach in our Millionaire Investor Program.
This knowledge allows me to sleep peacefully at night and have fun during the day without ever looking at the charts, no trading, no confusing news and staying away from derivatives such as options and CFD.
Yet I can generate massive capital gains and pure passive income through increasing dividends and achieve financial freedom.
Would you like to do the same too?
(If yes, register yourself for a FREE 2 Hr seminar http://millionaireinvestor.com/free-seminar/?mi728)
Oh by the way, this company just announced another RECORD Revenue, Net Profit and Free Cash Flow financial year.
Dividend payout declared increased by 23% as compared to last year.
Love my compounder baby and we have more in our portfolio. 🙂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.”