“How to analyse a company?” – This is a question that almost every new investor will ask. Especially for first-time investors, this can be a very daunting task, where does one begin? Without proper financial education and experience, it is definitely hard to know what are the signs of a good or bad company.
There are 2 ways to analyse a company.
1) Fundamental Analysis
2) Technical Analysis
Fundamental Analysis
What are the differences you may ask. Fundamental analysis looks at both the macro and micro economics. We look at the prospects of the industry and the way the business positions itself to grow. Fundamental analysis looks into the financial statements (Income statement & Balance sheet) and dives into all the nitty gritty details of the company such as management, business model, etc. This the type of analysis that Warren Buffet and many other value investors subscribe to. A company with good fundamentals will stand strong through the test of time and be able to ride through the market cycles. Couple a company with good fundamentals and at the right valuation, you’ll be paid off handsomely for your labour. When you do your research, you are taking calculated risk and you avoid exposing yourself to taking on unnecessary risks that may not want to take on. Investing is not simply buying or selling, it requires making sense of the ocean of numbers you see. When first starting out, I can assure you that it’s information overload and all you see are numbers that do not make sense. Give yourself time, start with one set of numbers at a time and with practice, you will eventually be able to make sense of everything!
Technical Analysis
Technical analysis on the other hand, is more focused on the entry and exit timing when trading. Pure technical analysis will ignore the fundamentals of a company. These are the people who looks at charts, chart patterns, price-volume action and technical indicators. They also tend to enter and exit a trade very quickly because they are riding on the hype of the market. A company without solid fundamentals may rise due to speculators buying up the share prices hoping the next fool buys it higher. But these stellar movements will not sustain without fundamentals just like how a skyscraper needs a solid foundation. They will not stand the test of time and will come crashing down as shown by the not-so-recent crash of the trio (Asiasons, Blumont, LionGold). However, let’s not discredit technical analysis just yet. Technical analysis has a lot of advantages and can give you hints of when the stock will move in a certain direction. Every single bit of information in investing is important and the one who has the most accurate information is the one who profits. I urge you to keep an open-mind about technical analysis because although it starts off confusing, just like with every other thing, it will reward you just as well.
Combining the best of both worlds
Allow me to introduce you the third style. This combines both technical analysis and fundamental analysis. This is perhaps a more mixed up approach, which attempts to take the best of both worlds of investing and trading. Personally, I subscribe to this style of investing because I believe that a company with good fundamentals can get cheaper for external reasons such as poor market sentiments, short-term fluctuations, etc. This is when good fundamental analysis meets good technical analysis; to be able to buy fundamentally good companies at the cheapest price with the given opportunity. This style of investing is especially useful when investing in companies for their dividend yield. Dividend yield can be affected by two factors, the dividend payment and the share price. Take for example a company like SingPost, it gives out the same dividend year after year since 2006, 6.25c. The only way to get a better dividend yield out of it is to purchase it at a lower share price. This is where I feel having good technical analysis skills come into play. To be able to spot the bottom of price movements allows you to get better yield. I believe that even good companies can get even cheaper due to external reasons which are short-term in nature. You would effectively be able to apply the “Buy low, sell high” concept as well as value investing. Take time to learn and understand both ways of analysis and you will come out a better investor at the end of the day!
Evolution suggests that men are designed to hunt while women gather. Gender stereotypes also encourage females to stay at home and to take care of the off springs. But…times have changed.
More Women Work
Based on a study by Prudential Company in 2012, approximately 53% of the sample were women breadwinners while only 22% were married or living with a partner who made more than them. Furthermore, other research showed that about 70% of mothers with children aged 17 and under are in the workforce. And, those numbers are just in the United States. Global rise in dual-career bearer household have increased annually.
Image Credits: Kelly Garbato via Flickr
This fact that women are working more nowadays is something both men and women are accepting. The younger generations were raised to empower equality in the household. Moreover, the quality of life is getting harder as economies fail. And so, there is a great need for both men and women to work regardless of gender stereotypes.
Impact on Marriage When She Makes More
On of the largest impact of this contemporary shift is that it may affect the dynamics of the marriage. Psychology argues that men’s view of the self is formed by his work and his drive to achieve. If that is the case then if the wife makes more, it will make him feel far more inferior and insecure.
To avoid that, Farnoosh Torabi, the author of “When She Makes More”, suggests that most couples assume that if one makes more then that person has more responsibilities in the house, which she firmly stands against. According to Torabi, a couple must constantly make a conscious effort to ask the partner about financial decisions and share it openly with each other. Furthermore she gave these two tips: give everyone’s money a meaning, and treat each other once in a while.
Ultimate Financial Goal
The most important financial goal for women is to have enough money to raise their family, and to maintain the same lifestyle in their retirement. This is why young women need to take steps toward understanding investing. When women avoid investing young, they are losing out on the one thing that knowledge cannot buy– time.
Who makes more than whom should not be a huge matter as the couple’s combined earnings will only benefit not only the both of them but also their children. Couples shall work together and communicated openly on financial decisions in order to share the emotional responsibilities and keep the balance in order.
Wouldn’t you want to know where to put your hard-earned money, so it can work by itself? Don’t you want a secure and profitable investment that will bring money in the long run? Well, who doesn’t? But if it was so easy, why isn’t everybody doing it. Because it isn’t that easy and the markets become increasingly unsteady. However, there are certain areas that come close to what you would want to call a safe investment.
Those are areas that are less dependent on the fluctuations of the market. For example – as the world tries to stir towards renewable energy resources, an increasing number of governments are subsidising this particular industry. Hence, the industry grows and becomes more profitable – no matter whether another financial crisis will hit or not. Although nothing is even 100% secure, certain areas of investment are very likely to create profit. Not all are in Europe and North America though.
Investing in Asian markets is nothing new. However, some markets are booming and won’t stop for another decade at least. Singapore is one these markets. This sovereign city-state has the highest concentration of millionaires in the world and therefore plenty of investment power within the country. The construction industry is already booming for over a decade and there isn’t a sign for a halt. Property agents have turned wealthy, as land is being reclaimed and developed with the speed of light.
But there isn’t only property. The government and the Singapore Economic Development Board have opened up the country for foreign investors. The economy is not limited to construction and property, but excels in trade and shipping as Singapore has the busiest port in Asia. Also other sectors, such as technology, tourism and financial services, are welcoming and prosperous. As Singapore’s government stirs the economy towards further development and growth, there isn’t any end in sight for long-term investments.
Another interesting location for investments is Qatar. With the FIFA World Cup 2022 coming up, the investments from within the country are enormous. Qatar is not only investing stadiums and infrastructure, but aims to create a wonderland for tourists, just like Dubai has done. Stocks are being predicted to rise, if not triple within a decade. Different sources recommend the Qatar investment fund. However, there is a bitter taste to the bite. The Arab country has recently been criticised for the unfavourable treatment of their foreign workers. Furthermore, the FIFA is under pressure, due to accusations of bribery during the bidding process and allegations of slave labour. Although the FIFA says a reallocation of the World Cup 2022 will not happen, one should keep it in mind when investing in the Gulf country.
Properties can be in another sense an interesting investment. As certain cities loose their population, others are becoming increasingly popular. Detroit for example has lost half of its inhabitants in forty years. However, there are other urban centres that are already experiencing a scarcity of housing. Berlin for example has a rising demand for housing for ten years straight. The German capital has once been cheap with plenty of living space. Investors have renovated entire neighbourhoods and created upscale living. As the popularity of Berlin isn’t declining, the rents have not only increased, but property has become the hottest commodity in the city. Those who have invested in property early enough have made significant financial benefits.
Similar developments can be seen in various cities around the world. Brooklyn, London, Paris and Amsterdam are only a few examples. Furthermore, due to the housing crisis and the collapse of the international market in 2008 and 2009, the prices for houses and properties broke down. Five years later the prices are slowing picking up speed with the tendency to rise rather than to fall again. An investment in inner city housing and urban property will in many cases be a profitable one.
Barcelona, Madrid, Austin and other cities are becoming increasingly attractive. As the rents there are down at the moment, these cities provide investors with interesting prospects. The prices on the international housing market were terribly bad for a couple of years. As the crisis is passing and most countries are recovering, the prices will go nowhere but up. While the market in some cities might take some time, other city markets are already starting to boom. Furthermore, the trend of urbanisation is speeding up the process. London, however, is no longer interesting, as the rents have become too expensive which minimises the profit margin dramatically.
Up and rising are also leisure and entertainment. Never before have we consumed such a quantity of entertainment. Hence, the technology sector will not just be interesting, but also offer itself as a profitable investment opportunity. Social Media brands and small start-ups, such as Facebook and Whatsapp have in an extremely short period of time generated a large amount of value and money. Many others are following the example. The technology market has grown tight links to the entertainment and leisure industry. Therefore, it will be interesting to watch what is coming.
Surely there are people that keep reminding us constantly of the bursting dotcom bubble. However, investments in technology are profitable now and in the future. The dotcom bubble was an entity in itself – complex and difficult to understand for investors at the time. Through smart phones, iPads and HD gadgets the world has become more receptive towards this kind of technology. All these devices seem to be irreplaceable already – just imagine where the industry will be in only five years.
Furthermore, it is not only leisure and entertainment, but the finance and business world that aim to catch up with the speed of the technology. Entire industries are upgrading – no matter whether medicine, manufacturing or construction. The technology industry offers a wide range of investing possibilities. Brands like Facebook, Google and Apple are one option. However, there are also special technology funds that offer themselves ideally to long-term investors. These are a perfect alternative for those who don’t want to bother with daily fluctuations.
Like you, I was young and fresh to the world of investing. I was 18 and finally eligible to invest! I remember thinking to myself; I can finally put everything that I have learnt into practice! Along the way, I have learnt so much more, directly and indirectly, about investing.
1) Saving
The first obvious thing about investing is that you can’t even start it when you have nothing to start with. My growing interest in investment was a very strong motivation for me to save. I knew I had to have enough to get into the playground of the rich. Diligently, I put aside half my allowance every week and continued that way for months. Eventually, I had enough to make my first investment. From there on, I never stopped the habit of saving at least half my allowance to put into investments. You’ll be surprised how little you actually need once you begin on this journey of budgeting your week. Also, I advocate cash payments instead of credit cards because it is easier to track how much you have left and be less likely to overspend or spend unnecessarily.
2) No more reckless purchases
Having begun investing and seeing the kind of return it can give, I learnt to forsake a lot of luxury purchases just because my friends around me have it. A $1000 investment can make me $100 or it could buy me some stuff that I don’t really need and impede on my investing journey of creating a sizable portfolio. I chose to focus on growing my investment portfolio instead of indulging in luxury purchases. Of course, that’s not to say that it’s wrong to indulge. Indulge when necessary, not all the time!
Eg. If I wanted to buy something $100, I would want to make that $100 off the market before buying it instead of using my capital of $1000, depleting it to just $900. If you choose not to spend, you’ll still be rewarded with the compounded growth! This method of spending teaches you to delay gratification and to give you time to think twice before making a purchase. Also, you will cherish and enjoy your purchase even more, knowing that it comes from the fruit of your investment. You not only get what you want, you learn valuable lessons about investing as well!
3) Investing shows your true self
Investing will show you your true self and what kind of a person you truly are when money is involved. Are you the same person when you make a lot of money or lose a lot of money? When I first started investing, I definitely did not expect that I would be in for an emotional roller coaster ride. One moment I was feeling good about myself for making the right decision to buy a particular stock. The next moment I was feeling angry at myself for being greedy to want more instead of taking my profits. From profits, they turned into losses. Over the years, I have grown to stabilise my emotions and accept that market swings are normal. I was then able to embrace them and learn to see the bigger picture instead of allowing my emotions to get in the way over short-term market noises.
4) How well can you tolerate risk?
When it comes to risk tolerance, it is all about discipline. When the share price hits your target, are you willing to stick to your target and take your profits? Or, will you continue to let it run hoping that it continues to go further up and disregard your primary research on the existing resistance level? Too often, traders in the market lose money due to the lack of discipline to take profit or to cut their losses. We all know that it is best to ‘Buy low and Sell high’. However, when real money is involved, greed and fear often overcome logic. Discipline is what will keep your rationality and nurture emotional stability. This would eventually translate into profits that you put into your pocket!
Despite the fact that online shopping in Singapore used to be viewed with distrust and misguided contempt – largely owing to the numerous scams that plagued the industry in its early days, Singapore’s online shopping scene has certainly picked up significant pace in recent years. This is mostly due to the introduction of improved protection laws as well as the advent of quality web stores that aim to build up a good reputation for themselves. In fact, the online shopping industry in Singapore is thriving so remarkably well that established local web stores are earning up to several tens of thousands each month! After all, given that shopping has often been dubbed the “national hobby” of Singapore, it is pretty evident that Singaporeans can’t quite stay away from shopping – both physical and online.
Online shopping in Singapore has certainly evolved through the years. Most of us are well-acquainted with the dingy small-scale blogshops hosted on Blogspot or Livejournal that used to saturate the online shopping scene in Singapore a few years ago – more often than not, owned by pre-teens and teenagers seeking to make a quick buck – that pedalled run-of-the-mill slogan tees from the same few local suppliers.
Today, these amateurish blogshops are a rarer sight, having phased out gradually with time.
Instead, they have been replaced by an increasing number of quality web stores boasting of impressive photography and editing, user-friendly dot com domains, together with a heavy emphasis on customer service that makes for a more impressive online shopping experience. Successful blogshops of the past have also been pressured into ditching their blog hosts, and switching to proper well-designed websites, to provide a competitive set of functionality and convenience to customers.
That’s not all. Apart from these Singaporean web stores, given the reach of globalisation and ever-low transport costs, it is now possible for us to purchase even from foreign international web stores from countries such as the USA, the UK, or Japan and China.
Truly, it can be said that online shopping in Singapore has changed so remarkably, that it bears little semblance to how it used to be eight years ago. Today, online shoppers are entirely spoiled for choice. With both domestic and international online stores to consider, as well as stores pumping out fresh collections weekly without fail, and with new products being launched every other day – surely it is easy for shoppers to be overwhelmed, and get lulled into the pace of the online shopping industry.
This is further compounded by rising prices of items sold online. The blogshops of old were favoured for their low prices in comparison to that of physical stores. However, this was made possible as such blogshops tended to be very small in scale, and there was little need to hire the extra hand. Also, the shops were hosted on free blogging platforms, and only basic photography and editing was necessary. Now, given the rapid expansion of online stores, as well as the demand for quality and sophistication, costs are undeniably rising – and together with it, prices as well.
As such, it presents a new truth –it is terrifyingly easy to overspend while shopping online today! Shoppers would find that while they might have been able to purchase say, five items from blogshops each month in the past, this ability has been drastically reduced in the present, since prices are so much higher than what they used to be.
Having said this, on days where you have an unbearable urge to splurge (because yes, the desire for instant gratification has been building up, and it’s finally caught up with you), it would be absolutely wise to hunt down the best deals in town first before you begin to surrender your credit card numbers to online stores.
As such, you might find this guide to be of use! In this guide, I’ll show you 4 amazing web stores or online platforms – both local, and international, where you can find great online shopping deals on such days where your clicker hand is just itching to spend, spend, spend.
Yes, you can still have both quantity AND quality – who ever said the two were mutually exclusive? All you need to know is where to hunt!
Megafash
Megafash, or formerly known as Chic Kiss Love, is an online curation that houses more than 180 brands and labels. Housing famous domestic brands such as The Closet Lover, or The Scarlet Room, Megafash terms itself “Asia’s leading online marketplace”, and it certainly lives up to its name, as it is pretty much a one-stop shop for terrific bargains on female apparel, as well as gifts and novelty delights.
Keep a look out for Megafash’s weekend flash sales, in which prices of female apparel may be slashed to an affordable $15, or even below! Clothing from prominent web stores for $15 or less? Where else can you find such remarkable deals? I say, Megafash is definitely worth checking out!
(Image credit: megafash.com)
If you have an eye for sleek new arrivals instead of sale items, Megafash’s weekly Launchbox section is certainly worth a browse as well. Every Wednesday, new collections from brands such as the likes of The Closet Lover and The Stage Walk – all significantly well-known local web stores, are listed up on their weekly Launchbox sale, where 10% discounts are given for these fresh collections. With such discounts, new items can be bought for a lower price than that you would otherwise pay if bought directly from the brands’ web stores themselves!
Carousell
Despite being a fresh start-up that was launched a mere two years ago, Carousell has achieved astounding success on the Singapore app stores. While it is commonly viewed as a platform for locals to peddle preloved items, it also doubly serves as a remarkable site on which to find amazing deals that cannot be found anywhere else.
Carousell has brought online shopping to an entirely different level, by bringing in the virtual to the physical, as transactions can be done in the form of physical meet ups at public locations, in which buyers are able to check their products for defects and flaws, while sellers are able to receive instant payment in the form of cold, hard cash.
Prices on Carousell are more often than not, lower than actual retail prices. In fact, prices can be slashed down to as low as 80% off the original retail price of certain items. This is primarily because sellers typically list up items that they have grown out of, or find ill fitting, and are consequently more willing to part with them at a lower price, never mind that they might be making a huge loss.
Similar to an online flea market, it is easy for buyers to locate their desired items on Carousell with just a quick search. Buyers can then negotiate or haggle with sellers to come to a price settlement, often at a more affordable price. However, it would be incorrect to think of Carousell as any simple flea market. In fact, it offers a greater range of goods and products than mere flea markets can ever hope to host. On Carousell, it is possible to purchase anything ranging from apparel, to household appliances, vintage décor, and even swishy new cars!
While Carousell may prove a little overwhelming for newcomers – the sheer volume of great deals does make it a little difficult to sieve through listings, it is undeniably a worthy browse. With some effort, you’ll definitely be able to hunt down a mind-blowing deal, without having to break the bank!
Taobao
Certainly, this Chinese online mega market is no stranger to most. Often lauded for its sheer variety, and dirt cheap prices, Taobao has attained significant popularity in Singapore, where most turn to it for affordable apparel, DIY supplies, household appliances, and even cosplay attire!
As Taobao is a Chinese online marketplace, it is a given that most of the site is worded in Mandarin, and it can be difficult for shoppers who cannot read the language to navigate around the site. However, this is little cause for worry as a little Google Translate can certainly go a long way! Also, there are numerous third party agent service providers in Singapore who are more than eager to help potential shoppers place their orders (in exchange for an agent fee of course).
Alibaba Group, the company which owns Taobao, has since launched a Southeast Asian branch, which allows customers to purchase directly from independent sellers on Taobao, instead of the need to go through a third party agent in order to send in orders. This has certainly made it easier for shoppers to purchase their items more efficiently, and saved the need to incur additional agent fee costs.
Even though prices on Taobao are already exceedingly affordable, keep a look out for its 11.11 Singles’ Day sales held on the 11th of November each year, where prices are slashed lower than they already are.
Qoo10
(Image credit: sheronism.blogspot.sg)
Qoo10 is yet another amazing site at which great deals can be acquired. Formerly known as Gmarket, it has achieved notable success in other Asian markets such as Korea and Japan. It has since expanded into Singapore, and has become much of a household hit.
Qoo10 retails a wide variety of goods, ranging from household devices, to phone accessories, as well as male and female apparel.
Since Qoo10 operates solely on the web, and it does not need to pay out rental as do other brick and mortar shops, items are priced very cheaply on sale. On top of sale prices, flash discounts are doled out regularly by independent sellers on Qoo10, so keep a look out for them!
Additionally, apart from essentials, Qoo10 also carries prominent international brands. In fact, you can purchase ever popular Kanken bags from discounted prices of $49, as well as Abercrombie and Fitch shirts from only $44! However, as a word of caution, it is always beneficial to read up on testimonials and reviews of individual sellers, as there have been complaints circulating online about customers receiving non-authentic goods. That being said, there are still genuinely affordable luxury items that Qoo10 carries which would otherwise retail for significantly more if purchased from physical fronts.
With its extensive catalogue of items, coupled with their intensely low prices, Qoo10 certainly makes for quite an enjoyable online shopping experience if you’re on the prowl for well-priced deals.
