tag:blogger.com,1999:blog-1417913566702354021.post1851886171497666217..comments2023-02-13T07:29:11.416-08:00Comments on My Personal Investment Journal: Recent Investment/ Portfolio update - Capitaland Mall Trust (C38U.SI)Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1417913566702354021.post-60092150392929205542017-01-03T19:42:46.723-08:002017-01-03T19:42:46.723-08:00Hi S,
Thank you for your insight,
Sorry i shou...Hi S, <br /><br />Thank you for your insight, <br /><br />Sorry i should have been more clear, I meant the risk of downside and fluctuation should an economy wide downturn were to occur.<br /><br />I fully agree that proper research and understanding is required. However I feel that buying undervalued stocks does not signify low risks as the prices could have been falling previously resulting in it appearing undervalued (based on trailing figures). <br /><br />Thank you for taking out time to read my blog. I will also check out your wordpress, thank you!<br /><br />Best Regards, <br />AAhttps://www.blogger.com/profile/01421789482318361987noreply@blogger.comtag:blogger.com,1999:blog-1417913566702354021.post-10368728232758103282017-01-01T21:53:23.639-08:002017-01-01T21:53:23.639-08:00Hi A,
In my opinion, beta does not signify risk....Hi A, <br /><br />In my opinion, beta does not signify risk. This is a common misconception, especially when its used in a lot of formula. <br /><br />In order to understand risk, let us first define it - risk in investment is the chances of losing money, or even prices staying stagnant for a few years.<br /><br />A stock with low correlation to market price doesn't mean it has less chance to lose money. In fact, to reduce risk, careful research and understanding of the company behind it is required. <br /><br />A company with a beta of 0.1 can have a high risk if you buy it at a price above its intrinsic value. Similarly, a company with a beta of 1 can be low risk, if you buy it when its undervalued.<br /><br />If you fear risk (or losing money), instead of going for low beta stocks, go for undervalued ones. There is a higher chance that those will rise in price.<br /><br />Simpleinvestorsg.wordpress.comSimple Investor SGhttps://www.blogger.com/profile/18443087309088397546noreply@blogger.com