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    Category: tipsHome

    When Fundamental Numbers Are Not Enough

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    by author   ·  June 19, 2023  

    A common understanding is that in a bearish stock market, always revert to the fundamentals.   Fundamental analysis can identify whether a company stock is cheap enough to accumulate. If only it is that simple, however.   What can go wrong with fundamental analysis?     1. Selling pressure Most stocks are in the red compared to last year. There’s no sign of ...

    Blind Diversification

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    by author   ·  May 5, 2023  

    Diversification is often mistaken as spreading into as much investment assets as possible, as evenly as possible.   Here are common mistakes made.   1. Diversification without a strategy and purpose Having a strategy and purpose enhances quality of diversification.   For instance, some assets are meant to generate cash flow which will provide steady income during recessions. As for other riskier ...

    Opportunity Cost

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    by author   ·  January 24, 2023  

    Opportunity cost occurs in almost every facet of life. It is inevitable.   In investment domain, opting for an investment asset (A) over another asset (B) means not getting any money from that other asset (B). It is a missed opportunity.     Quantifying the Opportunity Cost (OC) Opportunity Cost is not the same for every single Investor, depending on their ...

    Between a Valley and a Canyon

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    by author   ·  January 3, 2023  

    A Valley and a Canyon have similarity in the sense that both are declines of landscape. The difference? One (Canyon) is steeper and deeper than the other one (Valley). Almost everyone agrees that the market is in the state of decline. The question is how deep it will be. Window Dressing December has been recognized as the time ...

    Stronghold of Dividend Stocks

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    by author   ·  December 9, 2022  

    Global stock market has been in bearish mode for months. There is little sign of recovery.    Despite the downturn, there is some comfort in Dividend Stocks. So why are they so appealing amid recession fear?   1. Proven business model The strength of a company’s business model is tested through crisis. Some of these Companies have existed for decades ...

    Settle for Less

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    by author   ·  September 29, 2022  

    “Know your investment assets. Know how much it is worth, then sell at that price.” Quite often we heard of these words. There is nothing wrong if one chooses to follow this principle. Premium branded items are rarely discounted for sale, anyway.   Nevertheless, there are some Investors who choose different path, i.e. settling for less.   Why would ...

    To FIRE or not to FIRE

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    by author   ·  July 14, 2022  

    The topic of FIRE (Financially Independent, Retire Early) is increasingly being discussed among the younger generations.   Let’s probe several common questions here.    What does it mean to be financially independent? Some say it means not having to work anymore to live comfortably.   It can be either due to vast wealth accumulated; or due to passive income.     Why would someone choose ...

    Inflation Effects

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    by author   ·  June 27, 2022  

    Inflation. Is it a big deal? Definitely. Previous article has covered a bit of this issue. https://equityindonesia.com/walking-on-thin-ice/   Other issues that could arise from high inflation: Cost of Debt Interests on debts taken by individuals and corporations might accelerate up, leaving some unable to service their debt.   This is where DSCR (Debt Service Coverage Ratio) becomes very critical for Companies.   DSCR > 2.5 ...

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    ”Know what you own, and know why you own it.” Peter Lynch

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