Occasionally, I get questions from investors who ask: “Victor, I have been investing for many years, but I keep losing money in the stock market. What should I do?”

That’s a good question. But when I take a look at their stock portfolios, they usually own more than 50(!) companies and the majority of them are companies with weak business models and poor fundamentals that were usually bought based on recommendations by friends or brokers.

I was fortunate, together with Rusmin, that during our early years of investing, we were tasked to turn around a stock portfolio that was down around S$400,000. We had to review every stock inside and decide which to keep and which to junk, and along with injecting our own picks, the portfolio managed to turn a profit of S$2.3 million three years after we stepped in.

Combining this previous experience and the …