INTRODUCTION

Hi to all! I'm a 20 year old Singaporean chinese male who is very interested in investing.(I have actually devoted 2 years of my life to this skill). Through this blog, I actually hoped to find more like minded people in my age group who share the same phililosophies as me. I'm actually not really good with the animation type of stuff, so don't expect any fanciful stuff in this blog. It will actually be just a simple platform for everyone to share their thoughts. Also, pardon my poor command of the language as I don't get stellar grades for English throughout my school life,

By the way, when I mention investing, most people will just think it is risky. Especially, after so much stuff that has been going on lately. For eg, the fall of large investment banks and large insurance comapnies such as the lehmen brother, bear sterns and the AIG(the one that sponsor manchester united when they can't even sponsor themselves). Surely, we as non professionals can't out-perform the 'PROFESSIONALS' from the various investment banks. I am actually not proven yet, so I can't really say if i can beat the market whatsover, however I actually believe that most people can outperform the professionals!!! HOW??, that must be the question that most people would ask. Actually, u can do that by simply investing in INDEX FUNDS-funds that just practically track the index such as STRAITS TIME index, FXI(china) , snp 500(america) DJA(american). A startling statistics shows that only 25% of the pofessionals can only outperform the market. Yup, that is the truth. The advantage of investing in these type of funds rather than the normal typical mutual funds is the management fees. For normal mutual funds(unit trusts), a person usually need to pay 3-5% of what he invested, whereas buying normal ETFs would only require you to pay 0.25% of the management fees. Most people would think that 3-5% is nothing at all, BUT it is actually very crucial. I find it laughable when those people in the banks recommending unit trusts that say 3-5% is nothing. Even warren buffett's idol, teacher-benjamin graham can only outperform the market by 2.5% throughout the 40 years that he invested. Mind you, outperforming the market by 2.5% a year will make you a very rich man. IMAGINE COMPOUNDING your money at a rate of 12.5% per year for 40 years(a dollar will be transformed into 111 dollars)!!!! It will make a hell of a difference!!!

However, I need to warn everyone that you MUST not invest when the market is euphoric and crazy which is the period when the market p/e is more than 20. If not, you will suffer irreversible losses!!!! Best time of investing is when market is down which is the period when bad news flashes everwhere-p/e of market will be around 10 for this period)-this will only occur once in every 5 years or even more. So, PLLLLLLEASE don't let this golden opportunity pass

For the later posts, I will just discuss about my philosophies and I will not into great length describing the basic jargons.(such as p/e all these stuff)