STE's Stocks Investing Journey

Today I want to share something I genuinely enjoy and honestly, something far more important than endlessly crunching numbers or tweaking valuation models. Investing isn’t won on spreadsheets alone. P/E ratios, discounted cash flows, and balance sheets matter, but they don’t explain why markets panic, overshoot, or stay irrational far longer than they should. That part is human. Remember John Maynard Keynes' most famous quote on market irrationality , "Markets can remain irrational longer than you can remain solvent," highlighting that speculative bubbles or crashes can persist far beyond what logic dictates and emphasizes the unpredictable nature of financial markets and the risks of betting against them, even when you believe they are mis-priced or irrational. At its core, investing is about people. Markets are a giant arena of emotions : fear, greed, overconfidence, and herd behavior playing out in real time. For value investors, this is not noise to ignore; it’s the ...

First of all , allow me to quote below from a legendary investor ( some may call him great speculators and some may not agree with that as the way he took his own life in 1940 ) : Jesse Livermore “ The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid , the mentally lazy, the man of inferior emotion balance or for the get-rich quick adventurer. They will die poor .” **remark: I don’t think the "stupid" is a proper word there as the “smart” investors also fail in most of investing or speculating ( like the famous case of LTCM - click ). I have two books about Jesse Livermore, one is " How To Trade in Stocks " written shortly before his death in 1940. How to Trade Stocks offered traders their first account of his famously tight-lipped operator's trading system. Another one is " Reminiscences of a Stock Operator by Edwin LeFevre written in 1923. The book continues to be the most so...

What is the 'Gambler's Fallacy' image credit to lanieshope.org The gambler's fallacy is when an individual erroneously believes that the onset of a certain random event is less likely to happen following an event or a series of events. This line of thinking is incorrect because past events do not change the probability that certain events will occur in the future.

If you are investing in any stocks market, you will have experienced on the stock you first purchased in your investing life. For me, it was a counter called “ Magnum Bhd “, a company who operate and manage 4-digit numbers forecast betting in Malaysia. ( yeee.. a sin stock !) . Yap, indeed, it is a “sin “ stock with quite a decent dividend. There was a story on why am I investing in such counter as a start in my investing life. As you may notice from my post on “ About me “, I came from a big family with 7 siblings and my father was a construction worker. We are poor and most of my siblings don’t even have a chance to complete their primary school ( I am just the lucky one who has the chance to complete my tertiary education ). My father like to buy 4-D and he has won quite a big sum in the early days ( around RM10K ) in 35 years ago.  It would have considered a huge sum of money at that time, but since then ..he lost all the money he won plus much more i...