KLSE.8k's Idea to achieve Financial Freedom by Stock Market Investment: A Review

KLSE.8K (a.k.a. 8K) is an experienced and famous investor in Malaysia. Based on 8K's insight, having one million assets in our life is achievable. Firstly, we need to understand the power of compounding.

 

The Power of Compounding

If your initial capital is RM10,000.00 and your target is RM1,000,000.00, all you need to do is to find 7 undervalued businesses that provide at least 100% potential profits as follows:

 

0: RM   10,000

1: RM   20,000

2: RM   40,000

3: RM   80,000

4: RM  160,000

5: RM  320,000

6: RM  640,000

7: RM1,280,000

 

Apparently, this target is achievable.

 

The Excitement of an Value Investor: In the Long term

Most people have perceived that value investing strategy is a boring strategy. This may be true in the short term. However, there are lots of excitement in the long term.

 

To practise value investing strategy, you need a huge of "true brave". Value investors need to do mass of homework plus lots of "imagination" or "speculation". However, the "speculation" is only about the future development of the business based on the results from their homework, instead of their market price.

Stock Investment Cycle: From Extremely Undervalued to Overvalued

As a value investor, my investment strategy is quite simple - buy undervalued businesses, then sell overvalued businesses. Thus, knowing the stock investment cycle may help me do a better decision. In this post, I would like to summarise what I have learnt about investment cycles - from extremely undervalued to extremely overvalued.

 

Extremely Undervalued

During the bottom of Bear Market, trading volume is extremely low. Only few investors (who are well prepared) are interested in stock market investment. Most employee may struggle to find good jobs; and most employers may struggle to restructure their business after some sort of financial crisis.

 

During this moment, most of businesses are extremely undervalued with PE < 5 for small cap; and PE < 10 for blue chip.

Oversea Travel Tips: Emergency Cash Needed?

One of considerations for oversea trip or travel is to bring sufficient money for spending. For those who frequently travel, they can simply activate their credit card for global access. However, if you are just like me, travel oversea occasionally, then you may find some useful information from the following sharing.

Dell Webcam Central Problem - Windows 7, Inspiron N5110 (Solved)

Background

The model of my laptop is Inspiron N5110 with Windows 7 - 64bit. Initially, the "Settings" feature of my Dell Webcam Central was missing. Then, I decided to uninstall-re-install Dell Webcam Central. However, after that, I was unable to either remove or re-install my Dell Webcam Central. What a surprise!

 

What I did

The next thing I decided to do was to "force" delete the entire Dell Webcam Central from my Laptop by using an Uninstaller program. Despite the fact that I had successfully uninstalled (and removed) entire Dell Webcam Central from my Windows 7, I was unable re-install the software!

Another Unexpected Profits from Stock Market Investment: SCICOM

Stock market contains abundant unexpected events or things. In order to survive in stock market investment, we need to expect the unexpected. In fact, if things are happen as expected by you or somebody else, then you are probably just getting started in this ever-ending journey.

 

Unexpected Market should be expected

Logically, stock market must be unexpected. This is because stock market is just a media that gathers the action of people. Life is unexpected, so the people. People may need money due to unexpected events, and therefore need to sell out their shares to other. People may need money for better investment that no one else knows yet. People may simply want to realise their profits. In other words, unless you are very lucky, the chances you are right for guessing the moving of market price is 33% - up, down or unchanged, in average.