Do read the below conversations between a newbie and 2 “seasoned” investors with a light-hearted touch:

Newbie to Investor A

“Is this stock a good buy?”

“Sure! This stock’s P/E ratio is at all time low of 9 times; the forecasted growth next year is 20%; it’s selling at 30% discount to its book value; the chart is showing it is building a strong base – which means it will break out in price soon! Plus it got lots of dragons and phoenixes…”

“That’s great! I assume you already own this wonderful stock?”

“I not vested in this counter.”


Newbie to Investor B

“Is this stock a good buy?”

“This stock is the pits! I spit on it! The management don’t care a damn about shareholders’ interests; take on massive amount of crazy debt to diversify to new businesses that are not complementary to it’s core competences; and the stock is now selling 50% below it’s IPO price; and the management still got the cheek to issue a Rights Offer to beef up it’s shaky balance sheet!?”

“Oh dear… I assume you are shorting it?”

“Short you head! I will be subscribing to the Rights Offer so that I won’t get diluted.”


I leave it to you to take out what you may from the above 2 conversations. 

We see what we want to see; hear what we want to hear J

Singapore Man of Leisure (welcome to my blog; just google it!)
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