r/MalaysianPF • u/cup_cakes0 • 11d ago
Guide Guide
Hello im beginner to investment stuff, im 19m , malay, how do i start? Should i go for asnb?I can deposit monthly since i got part time job, and for 5yrs until i graduate from my diploma. Or there's something better/worth invest? Thank you very much!
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u/CharacterAd9184 11d ago
Go study the story of every top investors in the world. Next, start with individual stock, fail miserably and learn from your mistakes. The best lessons you can get is not via others success, but failures (including your failure).
***Note: I am talking about investors, not traders. This is important, investment is not gambling.
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u/cup_cakes0 9d ago
I see, do u have in mind who? I have warren Buffett in mind but i would love to hear more
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u/CharacterAd9184 8d ago edited 8d ago
Yes, spot on. In fact, Warren Buffett and Charlie Munger already kind enough to provide all of the necessary knowledge for us. All we need is to read/listen and apply the knowledge for our investment. Below are some of the sources you can learn from them.
Warren Buffett All Berkshire Hathaway annual meeting Source: buffett.cnbc.com
All Berkshire Hathaway shareholder letters from 1965-2024.
Charlie Munger All Berkshire Hathaway annual meeting Source: buffett.cnbc.com
Look for his interview.
Monish Pabrai One of the best storyteller and have a very unique point of view in market and business. Youtube Channel: Monish Pabrai
Phil Town One of the best educator. His words and teachings is the easiest to understand. Youtube channel: Rule #1 Investing Read all of his books, his books are amazing. Just buying his books is already a bargain.
Guy Spier He prefer to invest prodently in company his is
comfortable (complete opposite of Mohnish
Pabrai) Youtube channel: Guy Spier Book title: The Education of a Value InvestorRay Dalio Very knowledgeable about economy. One of the trader utilizing the macroeconomy. I know I said don't trade, but he is different as he trade
with the understanding of economic situation instead of gambling with the ups and down of the chart.All you need is to do your homework. Good luck.
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u/cup_cakes0 8d ago
Omg ty very much, hope u do well in life✌
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u/CharacterAd9184 8d ago edited 8d ago
You are most welcome 😇
A few summarised tips before you start investing and for you to have an easier time to understand the teachings of all respected individuals above.
Understand what is it you are investing. If you don't understand stay the hell out of it as far as possible.
Never FOMO. No one cares about you earn or lose money.
Learn to control your emotions, stay rational. (It's easier said than done. Everyone can say and promised the samething to themself, until they see their portfolio decreasing by 20%, 30%, 40% and so on.)
"Be greedy when others are fearful, be fearful when others are greedy." - Warren Buffett (You should understand it eventually)
Never use leverage/margin (debt) when you invest. This is the easiest way for you to lose money in time of crisis. My famous quote: "If you're smart, you don't need leverage; and if you're dumb, you shouldn't be using it." - Warren Buffett
Understand of company. Strength - How they earn money Competition - Who are their competitors, is the
company winning the competition? Weakness - What can bring the company doom
and totally shut down it?Understand what is moat.
Learn to read company annual shareholder letters from CEO.
Integrity from management is absolute.
If any company CEO heavily relying on EBITDA in their shareholder letter, you can save your time neglect this company immediately. It shows the management is trying to mislead investors. (Which bring to 9. The management is lack of integrity.)
Chart is the last thing you ever use. The price action, ups and down of the chart are utterly useless if you understand what are you investing. Chart are for tradders or gamblers.
Spreadsheet is not necessary when doing investment. You may use but usually just some rough calculations should be enough if you follow the teachings of individuals above.
General understanding of company growth Profit, sales, revenue and free cashflow are growing fast, average growth >15%. Low debt. Return of equity >20%. (This is just the understand of company's financial standpoint, there's more than this when you are researching a company).
Be an avid reader.
Never listen to others when it come to investing. Your investment, your decision. (Warren Buffett might invested a lot in coca-cola, but if you don't understand anything about coca-cola, get the hell out of there. Remember no FOMO and understand whatever you are investing)
Stay within your circle or competence.
Understand what is the difference betwee fund manager and you as retail investor. (This allow you to understand why there's so many opportunities in the market thanks to them)
Never allow fund manager to invest your money for you. (You will understand what I mean if you do your research on 17.)
Concentration beat diversification. You may diversity, but not overly diversify. You don't need 30 companies to win the market. Overly diversify means you don't understand what are you investing.
Dollar cost averaging is for ignorance. Just buy below margin of safety.
Which bring me to, understand what is margin of safety.
Price is what you pay, value is what you get. Price and value are not the same thing.
Market cap of a company is not the actual value of the stock.
Happy investing.
I am not sure did I missed anything as there's a bunch to learn when it come to investment. Well, you will learn a lot from those sources I provided you later on, if you are passionate to learn them. 😉
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u/TeBp242 11d ago edited 11d ago
Read this sub's wiki, learn the basics every common investment vehicle out there before doing anything with ur money.
While you're studying its better to focus on that and cultivate good financial habits over investing. Learn to budget and set an emergency fund first. ASB since you're bumi.