Sins of Investing – Gluttony (Part 6)

Sin 6: Gluttony – Living for today

Lets face it, we all give in to instant gratification from time to time. How often are we able to delay gratification for the sake of the longer term? Perhaps putting off the many creature comforts / luxuries when we are younger so as to be able to save and invest that amount for the longer term. While it may seem little, but accumulated, it could mean quite a substantial war chest.

How many of us has the discipline to set aside a percentage of our pay just for investments? While I do not have the statistics, most of my friends do not have such a practice. The reason being could be most do not have the time to monitor the markets, have no idea how to invest or just having the mindset that they are still young and this is not an issue of concern yet.

Overindulgence

Investors who make large concentrated bets are rare and few. Most of them are activist investors or a major controlling stakeholder in the company. While large concentrated bets can yield huge returns, how many live to tell the tale? For every investor we read sharing their success story, how many went horribly wrong?

Incredible Tax Breaks: How Economic Opportunity Zones Work (Special Report)

Missed Opportunity Economic Opportunity ZonesThis is the first part of a multi-part series on Economic Opportunity Zones. The tax-efficient zones were brought in as part of the Tax Cuts and Jobs Act of 2017 to try and stimulate economic activity in underdeveloped regions. Q2 2020 hedge fund letters, conferences and more   The following articles will cover the benefits Read More


Just like a glutton gorging on a delicious meal – it feels good until it doesn’t, and the damage is often irreversible. History is replete with tales of individuals who had all their money invested in company stock, companies like Enron, Worldcom, Blumont; all had huge, fabulous runs and disastrous endings.

Constantly adding onto a company while the price keeps running up thinking that we have finally hit a winner may not always be a wise choice. Assessing the margin of safety is always crucial when thinking of adding more to a stock whose price is running up.

Concentrated bets are a great way to make loads of money and are great stories to tell as long as you are right. However, the problem with concentrated bet is having the ability to constantly repeat successes. How many of us truly can say that we have such an ability?

 

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I developed my passion for investment management especially equity research at a relatively young age. My investment journey began when I was 20, at a point in time where markets were still recovering from the Global Financial Crisis. My portfolio started from money I saved over the past years and through working during the holidays. I was fortunate to have a good friend with common investing mentality to began my journey towards value investing. To date, we still research and invest in companies together, discussing valuations and potential risks of a company. To date, I manage a fund with a value investing style. Positions are decided upon via a bottom-up approach or smart speculation (a term I came up with when buying a stock for quick profit due to a mismatch in prices in the market due to takeovers/selling of a subsidiary or associate). Apart from managing my own portfolio, I enjoy sharing my research with family and friends, seeking their opinions and views towards the stock. Reading Economics in London, I constantly keep up with the financial news in Singapore & Hong Kong. Despite my busy schedule, it has not stopped me from enjoying other aspects of life. I enjoy a variety of activities in whatever free time I may have – endurance running, marathons, traveling, fine dining, whiskey appreciation, fashion. Lastly, I enjoy meeting new people, discussing ideas and gaining new perspectives towards issues in the world.