SGX Academy course: 36 Red Flags in Financial Reports - How to Detect Accounting Gimm

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(28-10-2011, 01:07 AM)hongonn Wrote: I am no expert in accounting, drilling and analyse every figure and footnotes are becoming quite exhausting to me.

In the end to avoid fraud case, it becomes looking for a company i felt comfortable with. So slowly it turns up these few criteria:

1. Don't invest in newly listed company for less than 5 years.

2. Don't invest in S-chips, since i don't trust them all. Don't tell me this S-chip is different, it just don't worth the risk you are taking.

3. Don't invest business that i totally don't understand, to be safe, it's better i can see their business. Consumer stocks are good choice to me.

4. Keep monitor the stocks for many years, if the company has been listed for many years, and business is consistently good, the chances of fraud case is low.

5. At last, if unlucky encounter a fraud case, be the 1st to throw the stock away whenever you hear any investigation case. It is always turn up opening a can of worms. It always worse than you expected when you hoping for the better.

These slowly becoming my simple rules of guideline, instead of avoiding stock market of all, or drilling and suspecting the figures like i am an expert.

Hi,
1) May i add, how many years the company has been paying dividends
consistently?

2) Never speculate even with money you have made from the market.
Don't ever think that's not your money.
WB:-

1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.

Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.

NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
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RE: SGX Academy course: 36 Red Flags in Financial Reports - How to Detect Accounting Gimm - by Temperament - 28-10-2011, 09:02 PM

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