Wednesday, 31 October 2018

Colombo Stock Exchange Trade Summary 31-Oct-2018

Quote for the day

"Games are won by players who focus on the playing field –- not by those whose eyes are glued to the scoreboard." – Warren Buffett

Tuesday, 30 October 2018

Monday, 29 October 2018

Colombo Stock Exchange Trade Summary 29-Oct-2018

Quote for the day

"When an investor focuses on short-term investments, he or she is observing the variability of the portfolio, not the returns – in short, being fooled by randomness." – Nassim Nicholas Taleb

Sunday, 28 October 2018

The 11 takeaways for investors from Max Gunther’s How to Get Lucky:

1. Distinguish between luck and planning
Your investment results have a healthy dose of luck in them. Internalise this so you don’t feel invincible after a good year or question your intelligence after a bad year.

2. Find the fast flowInstead of taking this to mean show up at every investor conference, find meaningful ways to engage with people who apply different investment philosophies.

3. Take risk in measured spoonfulsLearning to invest is like learning to ride a bike or swim. You have to get in there and put small amounts at risk to understand what works for you. At the same time, never with amounts, you can’t afford to lose.

4. Cut runsWhen a stock you own starts rising rapidly because a bunch of favourable factors aligned, don’t target riding it all the way. Be ok with exiting sometime before the peak.

5. Select your luckDon’t let your ego or loss aversion get in the way of sticking with a poor stock even as it declines gradually. Cut your losses.

6. Take the zigzag pathMaybe you have the instincts of a trader. Maybe your skill is in finding obscure micro-caps. Or cyclicals. Or contrarian large caps. Every successful investor is successful in her own way. Explore a little to find your way.

7. Be a pragmatic supernaturalist
Corollary to point 1, sometimes luck overshadows supreme skill. Sometimes you get good results without a good process. Stay humble.
8. Visualise the worst caseAvoid leverage. Size your positions.

9. Stay silent
That urge to tweet about a pick that’s gone up 25% in the last week. Resist it so you can exit the position without feeling like you will lose face.

10. Recognize non-lessons“Stocks fall in election years” / “Stocks rise in election years”. Wrong. “It’s an election year, stocks will be more volatile than usual”

11. Accept an unfair universeThe stock market does not owe you returns. Not even if you first lost money in Satyam and then again in Educomp.

Quote for the day

"When money realizes that it is in good hands, it wants to stay and multiply in those hands." – Idowu Koyenikan

Saturday, 27 October 2018

The Difference Between Winners And Losers

There are winners and there are losers. Human beings, being the competitive and egocentric creatures that we are, can’t help but always compete with each other- even over the smallest things. Competing over petty things is not of importance, but there are times when you need to compete and, more importantly, need to win.

Why do I say need to win? Everyone has goals. Wanting to achieve these goals creates a need that in certain circumstances can be excruciatingly powerful. Some are simple and others are difficult to attain, taking hard work and dedication to achieve.

Whether you are competing against others or competing against yourself, to get to where you want to be, you’ll have to kick someone’s ass, albeit your very own. But how do you win? What is the difference between a winner and a loser- not the given outcome, but what are the differences in character and in their actions? What distinguishes a Winner from a Loser?

The Winner is always part of the answer; 
The Loser is always part of the problem.

The Winner always has a program; 
The Loser always has an excuse.

The Winner says, “Let me do it for you”; 
The Loser says, “That is not my job.”

The Winner sees an answer for every problem; 
The Loser sees a problem for every answer.

The Winner says, “It may be difficult but it is possible”; 
The Loser says, “It may be possible but it is too difficult.”

When a Winner makes a mistake, he says, “I was wrong”; 
When a Loser makes a mistake, he says, “It wasn’t my fault.”

A Winner makes commitments; 
A Loser makes promises.

Winners have dreams; 
Losers have schemes.

Winners say, “I must do something”; 
Losers say, “Something must be done.”

Winners are a part of the team; 
Losers are apart from the team.

Winners see the gain; 
Losers see the pain.

Winners see possibilities; 
Losers see problems.

Winners believe in win-win; 
Losers believe for them to win someone has to lose.

Winners see the potential; 
Losers see the past.

Winners are like a thermostat; 
Losers are like thermometers.

Winners choose what they say; 
Losers say what they choose.

Winners use hard arguments but soft words; 
Losers use soft arguments but hard words.

Winners stand firm on values but compromise on petty things; 
Losers stand firm on petty things but compromise on values.

Winners follow the philosophy of empathy: “Don’t do to others what you would not want them to do to you”; 
Losers follow the philosophy, “Do it to others before they do it to you.”

Winners make it happen; 
Losers let it happen.

Winners plan and prepare to win. The key word is preparation.

Quote for the day

"The biggest risk is not taking any risk… In a world that changing really quickly, the only strategy that is guaranteed to fail is not taking risks." – Mark Zuckerberg

Friday, 26 October 2018

Colombo Stock Exchange Trade Summary 26-Oct-2018

Click here to download 26-Oct-2018 Trade Summary csv File

               Crossings - 26/10/2018 & Top 10 Contributors to Change ASPI

Top 10 Gainer / Loser / Turnover / Volume for the day
Top 10 Foreign Activity for the Day

Quote for the day

"Investing money is the process of committing resources in a strategic way to accomplish a specific objective." – Alan Gotthardt

Thursday, 25 October 2018

Colombo Stock Exchange Holidays for 2019

Colombo Stock Exchange Trade Summary 25-Oct-2018

Quote for the day

"In the long run, it’s not just how much money you make that will determine your future prosperity. It’s how much of that money you put to work by saving it and investing it." – Peter Lynch

Wednesday, 24 October 2018

Quote for the day

"Avoiding where others go wrong is an important step in achieving investment success." – Seth Klarman

Tuesday, 23 October 2018

Colombo Stock Exchange Trade Summary 23-Oct-2018

Quote for the day

"No profession requires more hard work, intelligence, patience, and mental discipline than successful speculation." - Robert Rhea

Monday, 22 October 2018

Colombo Stock Exchange Trade Summary 22-Oct-2018

Quote for the day

"The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd." - Warren Buffett

Sunday, 21 October 2018

Quote for the day

"There is only one thing that makes a dream impossible to achieve: the fear of failure." - Paulo Coelho

Saturday, 20 October 2018

15 Characteristics of Highly Successful Investors

By Ajaero Tony Martins

Are you a trader or investor? Have you ever wished you were an investment whiz kid like Warren Buffett, Peter Lynch or George Soros? Would you give everything just to become successful as these men? What special characteristics do highly successful investors possess that you don't? If someone offered to explain to you in detail the basic characteristics possessed by every successful investor, will you listen and learn whole heartedly?

If your answer to the last question above is yes? Then please read on as I share with you 15 characteristics possessed by successful investors such as Warren Buffett.

"The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left." -- Rich Dad

"Do you know the only thing that gives me pleasure? It's to see my dividends coming in." -- John D. Rockefeller

15 Characteristics of Highly Successful Investors

1. Highly successful investors are proactive learners

The first characteristic of highly successful investors is that they are proactive learners. They spend more time studying than the average investors. They are also voracious readers. Successful investors know that their cup of knowledge must never be full so they always keep their minds open; ever ready to learn.

"To learn new things; you might need to unlearn old thought and tricks. Both processes can never be achieved without humility." -- Ajaero Tony Martins

These set of investors are also willing to pay for knowledge so long it's something new. They read books, journals and magazines ranging from investing to personal development. They also attend seminars to improve themselves.

"The rich invest in time, the poor invest in money." -- Warren Buffett

2. They always invest with a planned exit strategy

"Go to the mouse you foolish investor and learn. A mouse never entrusts its life to only one hole." -- Ajaero Tony Martins

Successful investors know that there are always two sides to an investment. They know that the future is unpredictable so they prepare in advance for it. Average investors try to predict the future of their investments; they count their chickens before they are hatched. Successful investors do the opposite; they prepare for the best while still preparing for the worst.

"Always start at the end before you begin. Professional investors always have an exit strategy before they invest. Knowing your exit strategy is an important investment fundamental." -- Rich Dad

This is the ultimate reason why successful investors make money when the market goes up and even make more money when it comes down.

Do you want to be a successful investor? Then plan your exit before you enter any investment.
"Many people rush into the game of investing thinking they are predators. When they get to the middle of the game, they then realize they are the prey and try to escape but it will be too late. Only the preys with a well defined exit strategy will escape, the rest will be slaughtered by the real predators." -- Ajaero Tony Martins

3. They are patient

Successful investors are very patient. When they make their calculations on an investment, they are prepared to wait to make sure their plan materialize. They plan to take advantage of a short term bulls market but as a back up plan, they still plan to hold on for as long as.

"I never attempt to make money on the stock market. I buy on assumption they could close the market the next day and not re-open it for five years." -- Warren Buffett

4. Highly successful investors have strong emotional control

Every true investor knows that the market is driven by sentiment. Market surges and declines are mainly caused by two emotional factors; fear and greed. Average investors invest based on these emotions but successful investors have a stronger control over these emotions. They don't allow the talks of investment pundits or financial advisors affect their choice or method of investing.

"Every few seconds it changes, up an eighth, down an eighth. It's like playing a slot machine. I lose $20 million, I gain $20 million." -- Ted Turner

Successful investors also have a neutral reaction to either winning or losing. They don't abandon their investing strategy simply because of a few failures and they don't become over confident when they are on the winning side. No matter the market conditions, they still respect the 50-50 chance of winning or losing.

"To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game." -- Rich Dad

5. They have a well defined investing strategy

"A winning strategy must include losing." -- Rich Dad

Every successful investor has over time developed a well defined investing strategy that works and they stick to this strategy. While some successful investors implement the portfolio diversification strategy, others like Warren Buffett follow the portfolio focus strategy.

"Diversification is a protection against ignorance. It makes very little sense to those who know what they are doing." -- Warren Buffet

Though I strongly believe in portfolio focus strategy, I think every investor is entitled to his or her investing style. No matter the strategy you use, just make sure you know what you are doing.

"The wise man put all his eggs in one basket and watches the basket." -- Andrew Carnegie

To help you further understand some investing strategies you can adopt, below are some questions that can help you adopt an investing style:

Do you diversify or focus your portfolio? While Warren Buffett strongly advocates portfolio focus strategy, I believe there are professional investors making a kill using the diversification strategy. Different strokes for different folks.

Do you invest for short term or long term? Successful investors such as Warren Buffett invest for long term while George Soros mainly invest for short term and still became a success.

Are you investing for capital gains or cash flow? Most fund managers invest for capital gains but successful investors like Warren Buffett invest mainly for cash flow, capital gains may come later.

Are you a fundamental or technical investor? Most average investors try to be both but professional investors know that technical analysis and fundamental analysis may sometime contradict each other. So it's advisable you stick to one. George Soros and Sir John Templeton are examples of technical investors while Warren Buffett is a fundamental investor.

"Buy when everyone else is selling and hold when everyone else is buying. This is not merely a catchy slogan. It is the very essence of successful investments."
-- J. Paul Getty

6. They are focused

"The men who have succeeded are men who have chosen one line and stuck to it." -- Andrew Carnegie

Successful investors are focused on their investment vehicle. They take it one step at a time; one investment at a time.

For instance; Tim Ferris said on his blog that he would rather stick to angel investing than attempt to stock trade because he understands angel investing better. Warren Buffett is focused on stocks, Tim Ferris on angel investing, Jim Rogers on commodities future and Donald Trump on real estate.

7. Successful investors use trend to their advantage

"Your greatest and most powerful business survival strategy is going to be the speed at which you handle the speed of change. That speed of change is trend." -- Ajaero Tony Martins

Another attribute of successful investors is that they know how to use trend to their advantage. Average investors panic over market fluctuations but professional investors welcome these fluctuations because it's based on these fluctuations that they make their money.

Successful investors use trends such as market sentiments, political instability and company's crisis to their advantage.

"Look at market fluctuations as your friend rather than your enemy. Profit from folly rather than participate in it." -- Warren Buffett

8. They are persistent

"When everything seems to be going against you, remember that the airplane takes off against the wind, not with it." -- Henry Ford

Sticking to your investing strategy whether you are winning or losing requires a great deal of persistence. Average investors lack persistence and that's why they will forever remain average. They jump from one strategy to another and are always looking for the next hot tip.

"Most people give up just when they are about to achieve success. They quit on one yard line. They give up the at last minute of the game one foot from a winning touch down." -- Henry Ross Perot

9. They thrive on risk

"Risk comes from not knowing what you are doing." -- Warren Buffett

Investing is a risk but not knowing what you are doing is a greater risk. Every professional investor, whether on the winning or losing side still respect the 50-50 probability of success or failure. A major difference between a professional investor and an average investor is that a professional investor will always invest with a strong risk management system in place. Have you ever heard of the word "Hedge?"

"Seek advice on risk from the wealthy who still take risks, not friends who dare nothing more than a football bet." -- J. Paul Getty

10. Successful investors are disciplined

Successful investors are strict with themselves when it comes to investing. Aside their investing rules and principles, they are still guided by a strong self imposed standard. Professional investors know that it takes a great deal of discipline to stick to your investing strategies despite distractions from self proclaimed investment pundits.

"My two rules of investing: Rule one -- never lose money. Rule two -- never forget rule one." -- Warren Buffett

11. They know how to use leverage to their advantage

Before I proceed, I want to ask a question. What's the major difference between a successful investor such as Warren Buffett and the average investor? My answer is this; a successful investor knows how to make money by investing with other people's money while an average investor invests with personal funds. Investing with other people's money is a form of leverage.

"The most important word in the world of money is cash flow. The second most important word is leverage." -- Rich Dad

Other people's money is not the only form of leverage an investor can utilize. Your leverage can be your professional team, your investing experience or inside information.

"Financial leverage is the advantage the rich have over the poor and middle class." -- Rich Dad

"If you owe the bank $100, that's your problem. If you owe the bank $100 million, that's the bank's problem."
-- J. Paul Getty

12. They learn quickly from their mistakes

"Even a mistake may turn out to be the one thing necessary to a worthwhile achievement." -- Henry Ford

When investors talk of experience, they are simply talking about the trials faced, mistakes made, lessons learned and triumphs achieved. You can never become successful investors without making some miscalculations or mistakes.

Successful investors make mistakes but they are not discouraged by these mistakes because they know mistakes are part of the process to becoming a better investor. Average investors perceive mistakes as bad but successful investors see mistakes as an opportunity to learn something new.

"Only those who are asleep make no mistakes." -- Ingvar Kamprad

13. They have a team of professional advisors

"It is better to hang out with people better than you. Pick out associates whose behavior is better than yours and you will drift in that direction." -- Warren Buffett

If you observe successful investors closely, you will notice they have a team of professional advisors. Average investors try to beat the market alone while professional investors invest as part of a team.

Successful investors also have a network of friends made of professional investors. They share advice and brainstorm on investing challenges with their investor friends. Do you want to be a successful investor? If yes, then it's time to start choosing your friends carefully. Remember, birds of the same feathers flock together.

"I have been within the four walls of school and I have been on the street. I can confidently tell you that the street is tougher, challenging, daring, exciting and more rewarding. In school; you play alone. But on the street, you play with the big boys." -- Ajaero Tony Martins

14. They have a strong financial background

"Business and financial intelligence are not picked up within the four walls of school. You pick them up on the streets. In school, you are taught how to manage other people's money. On the streets, you are taught how to make money." -- Ajaero Tony Martins

Just as stated in the quote above, you only become a better investor by being on the streets. Successful investors have a solid financial foundation; a foundation molded on the streets. On the streets, you learn from your own experience. Successful investors build up their financial base by attending seminars, reading books and journals, learning from a mentor and listening to tapes; after which they go out on their own to gain street experience.

Average investors try to hone their investing skills while still striving to avoid loss. Successful investors on the other hand know that experience come with losing money and learning from the loss.

15. Successful investors are passionate about the game of investing

"Men of means look at making money as a game which they love to play." -- J. Paul Getty

Why are you an investor? Your answer to this question will determine if you will be successful in the world of investing or not. A famous author once said this: "if you are going to play a game, choose a game you can play throughout your life time and investing is one of such game".

If you take a look at average investors, they are always after how much they are going to make now but successful investors use delayed gratification and compounding to gain an edge.

"Wealth is only a benefit of the game of money. If you win, the money will be there."
-- J. Paul Getty

In conclusion, these are the 15 characteristics possessed by every successful investor. If it's your desire to join this league of investors, all you need to do is gradually develop these characters. As a final note, I want to state categorically that becoming a successful investor is within your reach. Just model the masters of the game and you will see yourself improving.

Quote for the day

"Winners are not afraid of losing. But losers are. Failure is part of the process of success. People who avoid failure also avoid success." - Robert T. Kiyosaki

Friday, 19 October 2018

Colombo Stock Exchange Trade Summary 19-Oct-2018

Quote for the day

"In my experience, each failure contains the seeds of your next success--if you are willing to learn from it." - Paul Allen

Thursday, 18 October 2018

Wednesday, 17 October 2018

Tuesday, 16 October 2018

Colombo Stock Exchange Trade Summary 16-Oct-2018

Quote for the day

“The secret to investing is to figure out the value of something – and then pay a lot less.” - Joel Greenblatt

Monday, 15 October 2018

Colombo Stock Exchange Trade Summary 15-Oct-2018

Quote for the day

“When it comes to investing, we want our money to grow with the highest rates of return, and the lowest risk possible. While there are no shortcuts to getting rich, there are smart ways to go about it.” – Phil Town

Sunday, 14 October 2018

Quote for the day

“The ability to focus attention on important things is a defining characteristic of intelligence.” – Robert J. Shiller

Saturday, 13 October 2018

5 Habits of Highly Successful Investors

By Tayyab Babar

Have you seen how a few individuals appear to ascend to the highest point of their field or wonder why some investors like Warren Buffett turn into billionaires while others consistently achieve the same “average” results?

Investors turn out to be enormous not just through splendid purchasing decisions or on account of a sizable retirement fund or through some financing companies. They also have great propensities that are profoundly instilled into their framework.

It’s not a fortuitous event that certain investors discover the triumph while others never achieve their goals.

There are sure attributes that without a doubt set investors like Mr. Buffett separated from the average investors… they essentially do things another way.

To venture into the shoes of a fruitful and successful investor, you should first start to think and act like them. This implies understanding their habits and applying them to your own particular approach.

Here are seven habits of highly successful investors.

1. They do research

There are abandon of studies, observation, and analysis available everywhere, including TV, internet, Wall Street Journal about investment. Before investing in a company, use the product, study the business. The better you understand the business, the more confident you’ll feel about your investment.

Successful investors have the accurate reason behind every stock buying or selling decision and it’s not because they heard a TV analyst pushing the stock as a buy.

In order to reach your investing goals, you must take the same approach with your own portfolio.

2. They understand the business

There are tons of organizations to invest in and lots of them might have the potential to be a good investment option, but that doesn’t essentially mean you should invest.

Why would you like to invest in a technology company if you don’t know anything about tech? Do you understand how to evaluate the next mobile app or the technology trends that will impact the business investment? Stick to what you know well.

If you’re detached with the business and their products, and the industry in which they operate; it will be harder for you to make smart investing decisions. Successful investors always invest in what they know and focus their investing efforts within their circle of competence. For example; Warren Buffett doesn’t invest in technology stocks, because it’s simply not where his competence lies.

3. They have a diversification strategy

Diversification is important. You cannot be a successful investor if you’re putting money in just two or three companies. To be a successful investor always determine how much you want to allocate to each class and then diversify your investments to reduce risk and increase your odds of success. Successful investors are best at diversifying their ideally distribute risk. Keep in mind, the foundation for making fruitful investing decisions is knowledge and analysis of the business and the industry. The more knowledge you have, the better decisions you will able to make. Every successful investor has a well-defined investing strategy and they stick to this strategy. While some successful investors like Warren Buffett prefer the portfolio focus strategy.

As Warren Buffett said “Diversification is a protection against ignorance. It makes very little sense to those who know what they are doing.”

4. They think long-term

Terrible decisions sometimes are taken when we become emotional and involve in short-term thinking. When it comes to investment –be patient—Think long-term. It means having the patient for months and years, not just for some hours, days and weeks. All the successful investors are very patient to see the triumph. When they make an investment after doing their calculations on a business, they are ready to wait to make sure their plan materializes.

5. They learn quickly from their mistakes

When an investor discusses experience, they are basically discussing the trials confronted, botches made, lessons learned and triumphs accomplished. One can never become a successful investor without making some erroneous conclusions, miscalculations, or mistakes.

Successful commit errors yet they are not disheartened by these missteps because they know mistakes are part of the process to becoming a better investor.

When we invest in the stock market, we may feel helpless – like outcomes are totally out of our control. But that is not essentially the case. By making wide-ranging smart decisions based on the habits and characteristics mentioned above, we can add discipline to our investment decisions and avoid financial catastrophe.

Quote for the day

“It is impossible to produce superior performance unless you do something different from the majority.” – John Templeton

Friday, 12 October 2018

Thursday, 11 October 2018

Colombo Stock Exchange Trade Summary 11-Oct-2018

Quote for the day

"Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett

Wednesday, 10 October 2018

Colombo Stock Exchange Trade Summary 10-Oct-2018

Quote for the day

“Investing in yourself is the best investment you will ever make. It will not only improve your life, it will improve the lives of all those around you.” - Robin Sharma

Tuesday, 9 October 2018

Colombo Stock Exchange Trade Summary 09-Oct-2018

Quote for the day

“Growth is the great separator between those who succeed and those who do not. When I see a person beginning to separate themselves from the pack, it’s almost always due to personal growth.” - John C. Maxwell

Monday, 8 October 2018

Colombo Stock Exchange Trade Summary 08-Oct-2018

Quote for the day

“Personal development is a major time-saver. The better you become, the less time it takes you to achieve your goals.” - Brian Tracy

Sunday, 7 October 2018

Quote for the day

“The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left.” - Robert Kiyosaki

Saturday, 6 October 2018

Quote for the day

"Financial peace isn't the acquisition of stuff. It's learning to live on less than you make, so you can give money back and have money to invest. You can't win until you do this." - Dave Ramsey

Friday, 5 October 2018

Colombo Stock Exchange Trade Summary 05-Oct-2018

Quote for the day

"It's not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for." - Robert Kiyosaki

Thursday, 4 October 2018

Wednesday, 3 October 2018

Tuesday, 2 October 2018

Colombo Stock Exchange Trade Summary 02-Oct-2018

Quote for the day

“If you want to be truly successful, invest in yourself to get the knowledge you need to find your unique factor. When you find it and focus on it and persevere your success will blossom.” - Sydney Madwed