My choice of wealth machine is mainly through individual stock prospecting.
I don’t call it value investing, growth investing. I am a pugilist learning the art of what generates a sustainable positive expected return.
What I learned that works are proper portfolio management, risk assessment, business prospecting, valuation, and momentum investing.
My style is somewhat like this, and it is hard for me to impart to others. I am also one person, so I have limited bandwidth to come up with materials to teach.
I am also shy and don’t think I am very adequate to be considered a teacher.
For those who wish to learn, I try to bring to you some materials and courses that could help you along the way.
My friends Victor and Rusmin over at Fifth Person have come up with their new course Investment Quadrant.
Personally, I have gone through the materials, I look at the price, and the value you could get and here is my assessment.
The Details of Investment Quadrant 2022
Investment Quadrant is a course that is based on Victor and Rusmin’s investment methodology.
Students learn through a series of articles and video-based modules. These modules will go through all the competencies of their investment methodology.
Thereafter, students will be able to sign up for 9-hour Investment Quadrant Workshops conducted by Victor and Rusmin (usually during weekends). Through this workshop, students will be able to refresh or be enlightened on the nuances of each module that they might have missed out on. During these workshops, case studies and question & answers will be carried out, so that students can come full circle to see how the concepts come together.
There is also an online question and answers medium where students can interact with trainers and fellow students
The cost of this course is US$358 (approx SG$497). If you are interested, you have until 10th July 2022, Sunday 23:59 to signed up for it (approx 20 days more).
Who should look into this course
Investment Quadrant is suitable for the new investors who wish to find a structured approach to doing stock prospecting.
To me, it is for you if:
- you wish to embark on individual stock investing across multiple industries and not constrain to a particular country
- who look upon investing not just gambling on a piece of paper but as speculating on listed business
- who wish to equip themselves with the competency to get started
- who wish to learn from practitioners how they make use of each competency area, within the full set of competency required for investing
- who have time and willing to put in the effort to look into individual stock investing? Also for those who think this is a good skill-set to invest upon
Do Ignore the Bombastic Sales Pitch
There are some parts of the sales pitch that I cannot take it.
A large part of it stems from the great returns that they put in their lead pages. I am not disputing the authenticity.
I believe this drives investors into having unrealistic expectations, especially when they are learning the tools of the trade.
The reality is that you will own a portfolio of stocks, each perhaps no more than 10% of your portfolio.
If you build up the full set of competency, you are bound to get 2 to 3 companies that give you that kind of returns, and they will drive the performance of your portfolio.
However, not all of your stocks will do that. There will be some that don’t turn out the way you want or they are just mediocre companies that you thought was great (due to your lack of competency)
My Thoughts on the Materials
The overall system drives the results. Generally why I agree with their system is that they don’t dress it up too much. The overall system they laid out gives you an idea of the different phases of the investing life cycle. It frames you to think about which part of the investing life cycle you are currently at.
I do have my own overall system. It is slightly different but the core phases are rather similar. In my opinion, you can reference greatly the investing system of others. However, your temperament, understanding will affect how different your system is compared to other investors.
Understand and force yourself to live through the system of good practitioners. Then reflect upon your temperament and understanding and tweak it accordingly.
Investment Quadrant Equips you with Competencies. You sign up for this course if you have no idea all the competencies that you come across in stock investing. From gross profit, PEG, business momentum shifts, the economics of scale, if these are unfamiliar to you, this course introduces them to you. And there are quite a number of them. There are 4 quadrants and the business and financial quadrant shows you how much knowledge you need to at least know.
This is a practitioner’s take on stock investing. There are too many courses out there that use the word value investing. This one comes more from the point of view of folks who have gone through the trials and tribulations of stock prospecting day in and day out.
They systematize how they look at stock prospecting and this is the product you get.
What I learn from Victor was this proprietary indicator that they learn after going through the school of hard knocks. And that is what separates them from the others.
We know that investing in the Asian context is a little different than in the west. A lot of western fund managers came over and they had to close their funds because they applied all the teachings in the west in emerging markets and they suffer substantial capital losses.
Also, what are the metrics to use to spot a growth company, before it became a growth company?
This has always been a problem that many of us find it hard to deconstruct.
I am not saying they have a foolproof metric, but they have one or two that they can help.
If you are a seasoned investor or a critical thinker you might come across it. But I am pretty sure most of us didn’t go as deep as Victor to think so much about this.
And in Investment Quadrant, they go through some of these metrics.
Too deep or too shallow? I honestly won’t know. I reviewed the whole material and think it is a lot for folks with no background to take in, in 5 days.
Luckily, it’s online so you can space them out and focus on them.
I don’t think it is shallow coming from someone who does stock prospecting myself. In the past, I came across companies that I would struggle to make sense of their business model, cash flow model and I realize some little nuances of the investment quadrant is something that I can add to my arsenal.
These nuances that I talked about, you may or may not be able to pick them up. It depends on the depth of experience you have.
Live Workshops shows brings what you learn full circle. Unless you are super introverted like me, you will prefer to interact with a live human being. My experience with BIGS Live is that we learn the most through life interactions where real-life scenarios are brought out and discussed.
I attended the workshops and to describe it, it is a way to let you see how all the things you learn come together.
During these live sessions, you will be able to catch a lot of the nuances of growth investing that you might have missed out when you look at the materials.
Rusmin, Victor, and Kenny will deconstruct some of the picks that they had in the past to show you why these stocks became the growth stocks they are.
While not just show past picks, during these sessions, they will also show you some current picks that fit the criteria that they are looking for.
This is one of the stocks that their US analyst Kenny de-constructed during the session I attended. Back then, the market was in a corrective mood but not just that, analysts were not very favourable about their outlook on a short term basis as well.
Kenny gave a thorough qualitative analysis of this business. Most importantly, he worked through how this stock looked with the metrics that they pay attention to.
It is useless if they just talk up a stock that is pretty good but doesn’t make use of what they said helped them.
You could lose 10% of your investments and not learn the right lessons to propel you forward. A lot of folks might start off stock investing with a capital of $5,000. It is quite easy to envision them losing 10% of that capital. That is almost equivalent to this course fee.
The easy conclusion is that you pick the wrong stock. You bought it at the wrong prices. You shouldn’t have listened to unreliable sources.
However, these are very superficial conclusions. They might have masked the deeper problem. That is, you lack the right level of competency to prospect the stocks well.
Does it mean that signing up for this will eliminate you from losing money? Of course not. I can guarantee you, you will make more future mistakes. However, I am quite sure going through this course, explains a lot of nuances such that you can provide some differentiation between the companies that you will invest in and the companies that you will not.
I cut a lot of my potential losses because I stay away from either thing I do not understand, companies that show questionable financials, companies whose majority shareholders carry out funny actions.
When you eliminate your mistakes, it’s either average growth or better growth.
For retail investors, you do not need to do fancy things. Start by understanding the business, the financials, and eliminate the mistakes.
Here is where you signed up (Limited Window)
The course closes on 4th July 2021. This means you have a small window of 19 days to sign up.
To sign up today, visit the landing page here >> (affiliate link. Kyith earns a commission if you signed up)
Here are my past views on their Dividend Machines course (which is closed now):
- 3 Key Ingredients for Success and How to acquire them concisely
- Key to Sustainable Dividends is Knowledge and Action Plan
- $50,000 Portfolio to Supplement Lifetime Critical Illness Coverage. - June 5, 2023
- The Beauty of Having Low Essential & Basic Expenses - June 3, 2023
- Singapore Savings Bonds SSB July 2023 Yield at2.82% (SBJUL23 GX23070H) - June 1, 2023
Sunday 28th of May 2017
Thanks for sharing about the Investment Quadrant course. Have not taken the course, but have found FifthPerson's BFMV framework (which I think of as a modification of 8i's 3R framework) to be very useful to assessing / prospecting companies for my own portfolio.
Cheers, S Chen
Thursday 1st of June 2017
Hi S Chen, Rusmin and Victor were one of the earlier folks in 8I previously so you can see the similarities. We all will have our own grouping the important thing is to be well covered in our prospecting.