Get Smart: Why You Shouldn’t Fall in Love with Your Stocks

The Smart Investor11-15

[ Share Facebook Twitter LinkedIn Email WhatsApp Ben Graham, the father of value investing, once said that investing is most intelligent when it is most businesslike. However, human ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2483314875?lang=en_US&edition=fundamental","thumbnail":"https://thesmartinvestor.com.sg/wp-content/uploads/2024/09/bull-300x200.png","is_english":true,"pubTime":"2024-11-15 15:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2483314875","market":"sg","top_or_hot":-1,"title":"Get Smart: Why You Shouldn’t Fall in Love with Your Stocks","media":"The Smart Investor","content":"<div>\n<p>[\n\n\n\nShare\n\n\nFacebook\n\nTwitter\n\nLinkedIn\n\nEmail\n\nWhatsApp\n\n\n\n\n\nBen Graham, the father of value investing, once said that investing is most intelligent when it is most businesslike. \nHowever, human ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/get-smart-why-you-shouldnt-fall-in-love-with-your-stocks/\">Source Link</a>\n\n</div>\n","source":"thesmartinvestor_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Get Smart: Why You Shouldn’t Fall in Love with Your Stocks</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGet Smart: Why You Shouldn’t Fall in Love with Your Stocks\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-15 15:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/get-smart-why-you-shouldnt-fall-in-love-with-your-stocks/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>[\n\n\n\nShare\n\n\nFacebook\n\nTwitter\n\nLinkedIn\n\nEmail\n\nWhatsApp\n\n\n\n\n\nBen Graham, the father of value investing, once said that investing is most intelligent when it is most businesslike. \nHowever, human ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/get-smart-why-you-shouldnt-fall-in-love-with-your-stocks/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SG9999014302.SGD","symbol_name":"RHB Singapore Income Fund SGD","start_time":0,"source_url":"https://thesmartinvestor.com.sg/get-smart-why-you-shouldnt-fall-in-love-with-your-stocks/","article_id":"2483314875","we_media_id":null,"thumbnails":["https://thesmartinvestor.com.sg/wp-content/uploads/2024/09/bull-300x200.png"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2483314875","pubTimestamp":1731654000,"sourceInfo":{"source_id":"thesmartinvestor_highlight","name":"The Smart Investor"},"weMediaInfo":null,"summary":"Remember to keep a level head when investing to avoid becoming enamoured with your stock picks.","collect":0,"end_time":0,"defaultTopTitle":"thesmartinvestor.com.sg","property":[],"viewcount":null,"language":"en","relate_stocks":{"SG9999014302.SGD":"RHB Singapore Income Fund SGD","SG9999013486.USD":"LIONGLOBAL SINGAPORE DIVIDEND EQUITY (USD) INC A","SG9999000475.SGD":"Aberdeen Standard Singapore Equity SGD","LU2257852520.SGD":"JPMorgan Funds - Asia Growth A (acc) SGD","LU0823417653.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) ACC","BK4585":"ETF&股票定投概念","SG9999014492.USD":"NIKKO AM ASEAN EQUITY \"A\" (USD) ACC","LU0488056044.USD":"Allianz Asian Multi Income Plus Cl AM DIS USD","LU1282649067.USD":"ALLIANZ ASIAN MULTI INCOME PLUS \"AMG\" (USD) INC A","LU0210637038.USD":"HSBC GIF THAI EQUITY \"AD\" INC","LU0823397285.USD":"BNP PARIBAS SUSTAINABLE ASIA EX-JAPAN EQUITY \"C\" (USD) INC","GRO":"Brazil Potash Corp.","LU0762540952.USD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AC\" (USD) ACC","LU0737861269.HKD":"FIDELITY ASEAN \"A \" (HKD) ACC","SGXZ24219693.SGD":"UNITED SG DYNAMIC INCOME FUND \"A\" (SGD) INC","LU0261945553.USD":"FIDELITY ASEAN \"A\" ACC","LU0955623706.USD":"SCHRODER ISF ASIAN DIVIDEND MAX \"A\" (USD) ACC","5MZ.SI":"金明创新有限公司","RL":"拉夫劳伦","LU0831103253.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD","D05.SI":"星展集团控股","BK6118":"消闲设施","LU1130305938.SGD":"Schroder ISF Asian Dividend Maximiser A Dis SGD-H","S85.SI":"星雅集团","LU1504937902.USD":"CT (LUX) I ASIAN EQUITY INCOME \"DUP\" (EUR) INC","SGXZ27511609.SGD":"NIKKO AM SINGAPORE DIVIDEND EQUITY \"SGD\" (SGD) ACC","IE0031814969.USD":"FSSA ASEAN ALL CAP FUND \"I\" (USD) ACC","LU2506951875.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) ACC","LU0006061336.USD":"Blackrock US Small and MidCap Opportunities A2 USD","LU0873338254.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (USD) INC","SG9999003800.SGD":"Nikko AM Global Dividend Equity Acc SGD-H","LU0577902611.USD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"A\" (USD) ACC","LU2506952097.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (USDHDG) ACC","LU0261947096.USD":"FIDELITY FUNDS  SUSTAINABLE ASIA EQUITY \"A\" (USD) ACC","LU2506951958.HKD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (HKDHDG) INC","BK6505":"周期性消费品与消费者服务","SG9999002620.SGD":"LionGlobal South East Asia SGD","BK6112":"综合性银行","LU2506952170.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"CRH\" (USDHDG) INC","LU0192582467.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" (USD) INC MF","SG9999013460.SGD":"LionGlobal Singapore Dividend Equity Fund SGD","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD","SG9999013478.USD":"利安新加坡股息基金","LU0577902538.SGD":"Fullerton Lux Funds - Asia Growth and Income Equities A Acc SGD","IE00BKZH1Z71.USD":"BNY MELLON ASIAN INCOME \"B\" (USD) ACC","LU0011963245.USD":"abrdn SICAV I ASIA PACIFIC SUSTAINAB  LE EQUITY \"A\" (USD) ACC","LU1956131251.USD":"BNP PARIBAS SUSTAINABLE ASIA EX-JAPAN EQUITY \"C\"MD (USD) INC","SG9999002604.SGD":"LionGlobal Singapore/Malaysia SGD","LU0048597586.USD":"富达亚洲焦点A","SG9999011175.SGD":"Nikko AM Global Dividend Equity Dis SGD-H"},"translate_title":"变得聪明：为什么你不应该爱上你的股票","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"5MZ.SI":1,"D05.SI":1,"GRO":1,"RL":1,"S85.SI":1},"content_text":"[\n\n\n\nShare\n\n\nFacebook\n\nTwitter\n\nLinkedIn\n\nEmail\n\nWhatsApp\n\n\n\n\n\nBen Graham, the father of value investing, once said that investing is most intelligent when it is most businesslike. \nHowever, human beings are, by nature, emotional creatures.\nWhere money is concerned, our emotions can overwhelm rational thought.\nThe most pertinent example is when we fall in love with our stocks. \nLet me share two examples so you can learn from them. \nThe love affair begins\nThe year was 2010 and I discovered what I thought was an interesting company called Kingsmen Creatives (SGX: 5MZ) on an investment forum.\nKingsmen runs a design and fabrication business that helps with interior fit-outs for offices while setting up corporate booths at road shows and refurbishing attractions for theme parks.\nThe group’s clients include reputable names such as Universal Studios, DBS Group (SGX: D05), Gucci, and Ralph Lauren (NYSE: RL).\nI invested at a cost price of between S$0.50 and S$0.575 as I was enthralled by stories of the founders’ struggles to grow the business, their keen eye for detail, and their focus on quality.\nI was so in love that I missed out on the fact that t Kingsmen was merely a glorified contractor with no competitive moat.\nTo be sure, Kingsmen was not an easy company to follow.\nThe business itself saw lumpy revenues as it was order book-based and gross margins often came under pressure when it came up against smaller contractors who bid aggressively for projects.\nThe final straw came in 2019 when\nKingsmen reported a weak set of earnings and stopped paying dividends..\nThe experience taught me that having a candid management team at the helm does not trump what was, at best, a mediocre business.\nAs Warren Buffett once said, when a manager with a good reputation meets an industry with a bad reputation, normally the industry leaves with its reputation intact.\nHeart like a wheel\nMy next “sweetheart” was Straco Corporation (SGX: S85), a company dealing with tourism that owns assets such as the Shanghai Ocean Aquarium (SOA) in Shanghai and Underwater World Xiamen (UWX) in Xiamen.\nBack in December 2014, I scooped up shares of the tourism-related company at close to S$0.74 after it had announced the acquisition of The Singapore Flyer the same year.\nAt the time, Straco’s management promised to revamp the Flyer to improve tenant occupancy and to request permission to renovate the Flyer, thus giving me the hope that the financials would improve.\nHowever, frequent visits to the property over the years showed various tenants slowly vacating the premises.\nAlong the way, the Flyer was also hit by “technical difficulties”.\nOperations were shut down for two months back in 2018 and were suspended again for more than two months in 2020.\nDisappointed with the lack of progress in revamping the Flyer and with COVID-19 forcing the shutdown of its China and Singapore attractions from 2020 onwards, I sold my shares at S$0.55 in March 2021, thus ending my love affair with Straco.\nIn hindsight, I put too much hope in what I saw as an iconic piece of the Marina Bay skyline. \nGet Smart: Reality bites\nOwning up to your mistakes is the first step to becoming a good investor. \nWhile it’s painful, it’s better to be aware of your errors and avoid them in the future rather than ignoring them and repeating them over and over again. \nTo avoid these pitfalls of emotional investing, it’s crucial to approach investing with a rational and disciplined mindset. \nHere are some key strategies that we, as investors, can use instead:  \n1. Set Clear Investment Goals\nBefore you start investing, it’s essential to define your financial objectives. Are you saving for retirement, a child’s education, a down payment on a house, or simply building wealth? Knowing your goals will help you choose appropriate investment strategies and asset allocation.\n2. Diversify Your Portfolio\nIt’s important to remember that despite our best efforts, not all of our stock picks will be the next multibagger. By spreading your investments across different industries and companies, you can reduce risk. Some companies that seem interesting can be tempting to invest in but higher in risk. What we can do instead is to limit our investment in and prioritize investments in companies with solid fundamentals and a proven track record.\n3. Regularly Review Your Investments\nThe competitive landscape in which a company operates is constantly changing. It’s important to regularly review your portfolio to ensure it aligns with your goals and risk tolerance. Consider factors like market trends, economic indicators, and your personal financial situation.\nDisclosure: Royston Yang owns shares of DBS Group.\n\n\n\n]","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483314875"}