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Learning to Invest in Individual Stocks & Proper Portfolio Management with Investment Quadrant 3.0

I have been known to wear many hats, from writing about personal finance, index investing, wealth management, financial independence and commentating on all the affairs surrounding me with regards to money.

The way that I been doing my wealth accumulation is through active individual stock investing.

What that means is that I spend my time prospecting the stocks in Singapore, Hong Kong to find stocks that I can invest for the long term, to speculate on the short term in order to accumulate my wealth.

As part of demonstrating the great benefit of my Stock Portfolio Tracker, you can have a glimpse of my current portfolio through the demo as well.

You may have read some of my past write up on whether M1 and Starhub is a value trap, or the Transportation business of ComfortDelgro.

People give it a lot of different names, like value growth investing, CanSlim, dividend investing, passive income portfolio.

I tend to keep it simple by calling it active individual stock investing. I invest in an individual stock. I spend enough time on it. So hence the name.

I wouldn’t say it’s everyone’s cup of tea. You got to enjoy the process of having a second job revolve around looking at financial statements, and thinking about the qualitative aspects of the business.

If this is not for you, you can go into entrepreneurship, passive index investing, learning to invest in fixed income, debt instruments, insurance endowment plans.

If this is for you, you can try your hands on it.

Learn about Active Stock Investing through Investment Quadrant 3.0

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Many have asked me do I have a course and unfortunately, my brain and mouth are so incoherent that it’s not possible.

If you wish to find out my thoughts on active stock investing, you can read my consolidated stuff here.

If you wish to learn about it in a lesson format, I will try to link you to the resources that are good, and won’t cost you an arm or leg.

And it so happens to be closest to how I look at active stock investing and you can get access to it.

When it comes to individual stock investing, my go-to resource is my friends Victor and Rusmin over at Fifth Person have come up with their course Investment Quadrant 3.0.

And I think it’s a suitable paid course to go for if you wish to shorten your learning curve and get up to speed on active stock investing.

To me, it is for you if:

  1. you wish to embark on individual stock investing across multiple industries and not constrain to a particular country
  2. you wish to learn about a proper, full investment process, from idea generation to the maintenance of a portfolio on an ongoing basis
  3. you wish to learn about the different ways of valuing companies
  4. who look upon investing not just gambling on a piece of paper but as speculating on listed business
  5. who wish to equip themselves with the competency to get started
  6. who wish to learn from practitioners how they make use of each competency area, within the full set of competency required for investing
  7. 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

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 these workshops, 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 questions & answers will be carried out, so that students can come full circle to see how the concepts come together.

And students can sign up for these workshops as many times as they wish (but your mileage may vary)

There is also an online question and answers medium where students can interact with trainers and fellow students

The cost of Investment Quadrant 3.0 is US$358 (approx SG$497).

It is Live now but only in a limited window.

If you are interested, you have until 19th JulySunday 23:59 to signed up for it (approx 2 days more).

Sign up here >>

Why I think it’s Suitable for You

When I put out something here and recommend it to you, it’s also putting my reputation on the line.

So if I work with the folks who are not competent, my reputation gets shot.

There are those that are strong, but they cannot teach or choose not to teach. There are those who think they know a lot but they actually know less than what they think.

The scope to learn for individual stock investing can be wide. From learning about how to do idea generation, how to screen for companies in a quick manner, how to deep dive into companies, valuing companies, it is multi-disciplinary.

Investment Quadrant 3.0 gives you a glimpse of the entire scope.

Once you know that, then you can have a checklist to get better in each discipline.

Again, the process will drive the return. Your competency is not just one area but being relatively competent in all the areas will drive your results.

Investment Quadrant’s process is not so different from mine (it is likely everyone’s process is slightly different) but it’s close enough. They have their investment quadrant, I have a very incoherent set of things I look at.

So you can see the benefit of someone able to articulate and present things in an applicable manner.

These high-level workflows will not be what you rely on, on a day to day basis.

They have managed to systemize the decision tree on how you can prospect the financial statements and annual reports so that you can focus on what is important first, then drill down deeper.

The goal here is to understand the nature of many listed businesses and invest in the undervalued ones with an adequate margin of safety. The above is an example of the kind of business that we all hope to identify through the process.

A Comprehensive Range of Active Investing Segments Covered

Being a good investor is pretty similar to being a good project manager.  You cannot just be good at scheduling or managing your own people.

You will need to be reasonably good in almost all the areas pretty well. If you are not good at certain areas, you should find someone or some resources to make up for that deficiency.

Here is a breakdown of the range of topics that would be covered:

  1. Investor psychology
    • Thinking like a business owner
    • Remember your downside
    • Keeping a long-term perspective
  2. Business model
    • A few different business models
    • High recurring revenues
    • Avoiding disruption
    • Segmental breakdown
  3. Economic moats
    • 7 of them which I will not elaborate on here
  4. Growth drivers
    • 6 different types of growth drivers
  5. Business risks
    • 9 different business risks highlighted
  6. Management quadrant
    • 7 different management traits
  7. Financials quadrant
    • Revenue
    • COGS
    • Gross profit
    • SGA expenses
    • Financing costs
    • Net profit
    • Extraordinary items
    • EPS
  8. Cash flow statement
  9. Balance sheet
  10. Profitability ratios
  11. Activity ratios
  12. Debt ratios
  13. Valuation quadrant
  14. Screening for stocks
  15. Entry and exit
  16. Portfolio management
  17. Monitoring your portfolio

You will Learn the Metrics that Help you Identify Growth Companies

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?

One of the metrics at work. Does a falling percentage indicate better or worse?

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.

There will be Webinar Workshops to Tie Things Together

The fifth person used to run physical workshops to help you deepen your knowledge.

After COVID, this method is pretty difficult to implement. So they decide to replace this with regular webinars.

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 on 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 will Learn Proper Portfolio Management to Maximize your Returns while Reducing Capital Impairment

Not all will turned up this way, some would not go 300% like this but go 30-40%. Some you will lose money because we misunderstood the business or that we execute poorly.

This is where portfolio management comes in.

I had a conversation with Rusmin some time ago.

I was sharing with him some questions that I had to tackle a lot. These can be pretty subjective.

I have readers from many walks of life, so should the entry and exits be the same?

Should the sizing of each stock in the portfolio be the same?

How do you guard against the risk of ruin for a retiree?

And we had a delightful conversation about this topic.

In my opinion, the decision management, portfolio management aspect, is seldom discussed, or superficially glossed over most of the time.

But portfolio management is one of the most important, together with executing the process.

And I am glad there is enough focus on this area. We invest for different reasons, we have different commitment levels, and we are at different stages of our lives.

If you have a good, high-level grasp of the portfolio management portion, it will drive your return in the long run.

It will also reduce your risk of ruin.

While I don’t always agree with all the nuances of the portfolio management modules of Investment Quadrant 3.0, the thought process, and the completeness gives me peace of mind that it guards the students adequately from major screw-ups.

For even more nuance KungFu, such as your previous challenges in investing, you can discuss with them during the live workshops.

Lastly, if you wish to measure the value, a novice who has a $5000 portfolio can easily lose 10%, or he can prepare himself by spending that equal amount, go for the course, find like-minded investors, engage with Rusmin and Victor to learn the ropes.

If you are a 40-year-old attempting to wealth accumulate, and your initial capital is around $50,000, the fee is almost 0.9% of your capital.

Investment Quadrant 3.0 is Live now but only in a limited window.

If you are interested, you have until 4th JulySunday 23:59 to signed up for it (approx 19 days more).

Sign up here >>

This article contains affiliate links. Kyith earns a referral fee for each signup. Sign up if it fits your need. Don’t sign up if you are not serious about this.

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