Over the last weekend was certainly one of the hottest and hazy day to hit the golf course. However, golf game is a good place not only as a form of exercise but also an ideal place to exchange business preposition. Haven't you heard of people said business deals are done not on the meeting table but on the golf course. It is definitely very true. If you know what I mean.
Of course, as usual, after exchange of pleasantry and after a few punts around the par ways, business were discussed while waiting for our turns to hit our balls. After awhile, stock market was everyone topic. What interesting to note is everyone seems to have make money from the recent market rally. The question is no longer about how much one has made but more on the ego challenge of his tips that has been proven correct and spot on. Some of them even challenged me to provide more stock pick. Those few stocks that I told them months back had already rallied. To them those are old stories. Now they wanted to know the new one. I reckoned this is a never ending venture and it is never enough no matter how many stocks you had fed them. You just need to keep on topping up my stocks recommendations all the time until, I suppose, the market crashed. That is when all stock talks and tips stop. You see, this kind of mentality does not only confine to most retail players but also to those established businessmen. I suppose the reason why they wanted me to join them for their golf game is to have someone to give them a moment of pause to reflect on their stock market game. Needing someone to give them the voice of reasoning on stock market matters. I never minced my words. I simply told them the way they are playing the stock market is dangerous. They might make a million now but they could easily lose two millions or more if they continued to play the market the way they played now.
Now, why keep on wanting more stocks recommendations when we already have a few that are showing good results. Good results in term of company performance as well as stock price performance. Most important, the company growth story is still very encouraging and exciting. I could understand if one wanted to diversify because of one has big funds to spread all over. But if one was to exit one stock and re-enter into another using the same limited fund, I don't see it is a good reason to justify such a move unless there is a change in company's fundamental.
Very often when I told people the above, they will disagreed with my view. Granted. Their reasons could be one of the following:- price has peaked, valuation is expensive now, take profit and buy later when price drop, take profit and switch to cheaper stock, price will crashed, not for long term, stock market is to make quick buck only, long term is for those with deep pocket, the price is not moving, etc.
Well, it is up to every individual. It is your money. It is either you teach your money how to make more money for you or the money teaches you how to be more careful with the money.
As parting shot for now, Presbhd is still the shining star and will continue to shine. However, it is no longer an affordable stock it used to be compare to 2 years ago, but it is still worth investing into the stock for long term. By the way, Bursa has approved the Bonus issue application by Presbhd yesterday.
Later, I will explore one stock that is 'affordable' to everyone and of course it is only suitable for the long term investor. My team is still at the final stage sifting through the numbers.
P/S: I differentiate between 'affordable' and 'expensive' as that the former means you could buy more of the stocks with less money and not necessary the stock is expensive whereas the latter means you will lose your pants if the stock crashed. In contrast, certain stock could be affordable but might considered expensive even though the stock price is less than 50 cents and this is the kind of stock that attracts the most attention from the retail players.