Top 10 World Richest Giant Stocks (富可敌国)

Posted on February 5, 2021 Written by

Investing in Top 10 World Richest persons stocks is an easy way to share their profits from growing businesses. However, the ranking of Top 10 Richest may vary (eg. Elon Musk moves from No 30 to No 1 when Tesla price surged by 10X in 1 year) with share prices, market emotions and businesses development, especially with mixed impact of the uncertain COVID-19 pandemic.

In this article, you will learn from Dr Tee on Top 10 World Richest Giant Stocks for longer term investing or short term trading with COVID-19 recovery stock rally. Bonus for readers who could read every words of the entire article, learning unique strategy to position in each richest person giant stock.

#1) Jeff Bezos – Amazon (US NASDAQ: AMZN)

#2) Elon Musk – Tesla (US NASDAQ: TSLA)

#3) Bernard Arnault – LVMH (France PA: MC)

#4) Bill Gates – Microsoft (US NASDAQ: MSFT)

#5) Mark Zuckerberg – Facebook (US NASDAQ: FB)

#6) Zhong Shanshan – Nongfu Spring (HKEx: 9633)

#7) Larry Page – Alphabet / Google (US NASDAQ: GOOGL / GOOG)

#8) Warren Buffett – Berkshire (US NYSE: BRK-A / BRK-B) / Apple (US NASDAQ: AAPL)

#9) Larry Ellison – Oracle (US NYSE: ORCL)

#10) Sergey Brin – Alphabet / Google (US NASDAQ: GOOGL / GOOG)

Most people may think the richest persons in the world are very rich because of their profitable businesses. This understanding is partially correct as it is actually dependent on their share prices which indirectly dependent on businesses and also stock market emotions.

The real time Top 10 World Richest list is updated here. We may observe that the earlier Top 10 list (eg. retail business) are taken over by Technology Giants (dominating 7 out of 10) during the pandemic stock crisis. Let’s learn to position in these Top 10 giant stocks with either long term investing or short term trading.

#1) Jeff Bezos – Amazon (US NASDAQ: AMZN)

Amazon has evolved from a small online book seller into the largest stock in the world with ecommerce business over the past few decades.  COVID-19 pandemic has helped the business to grow at faster speed in Year 2020, supporting its share price at high level, making founder Jeff Bezos to be the World Richest person (despite this position may rotate between Elon Musk, depending on daily share price).

Amazon stock is at 60% Optimism level, a strong growth stock near its fair price. Uptrend momentum in short term has been slowed down by sector rotation due to recovery of pandemic. It is more suitable for short term swing trading (Buy Low Sell High every few months) but upside may not be attractive for traders who aim for higher or quicker return.

#2) Elon Musk – Tesla (US NASDAQ: TSLA)

Elon Musk created a miracle to become the world richest person (for a short period of time, rotating this position with Jeff Bezos, depending on share prices) when Tesla share prices surged by 10 times over the last 1 year.

Tesla is a business of future, mainly based on investors believe in enormous potential of electrical vehicles, driven by 5G technology, supported by clean energy policies of major economies (eg. USA, Europe, China, etc). Despite the company has not been profitable for the last decade until 2020 (mainly due to high R&D cost), stock investing is forward looking, rising revenue (mainly China an US automotive markets) with rosy picture of next decade has supported the surge in share prices of Tesla and most automotive stocks with electrical cars.

Tesla stock is at 98% Optimism level, more suitable for trend-follow momentum trading in short term (Buy High Sell Higher) with S.E.T. (Stop Loss / Entry / Target Prices) trading plan. The growing business with greedy market emotions would continue to power this stock and entire electrical car market until the bubble is burst one day. Shorter term position is a good compromise to ride the trend while waiting for the next global financial crisis.

Elon Musk and Jeff Bezos may extend the competition of No 1 from the earth to outer space businesses, technology of future. Few people could predict the dominating technology for future, therefore it may be safer to focus in technology which are proven for the next 1 decade, eg. 5G, electric vehicles, AI, etc

#3) Bernard Arnault – LVMH (France PA: MC)

LVMH is a consumer discretionary stock (eg. luxury handbags) listed in Europe, business was temporary affected by COVID-19, resulting in a major correction in share prices.  With recovery in pandemic condition, LVMH is recovering as a strong growth stock.

LVMH stock is at 80% Optimism level, more suitable to position as short term momentum stock (Buy High Sell Higher) until the COVID-19 recovery rally is over one day.  Since the customers of businesses are mostly rich people, a stock investor may align with bullish stock market to enter or hold the position, exiting when the next black swan comes in future.

#4) Bill Gates – Microsoft (US NASDAQ: MSFT)

#8) Warren Buffett – Berkshire (US NYSE: BRK-A / BRK-B) / Apple (US NASDAQ: AAPL)

Bill Gates and Warren Buffett are good friends, even their stocks are inter-related.  Warren Buffett donates Berkshire stock to Bill Gates and Melinda Gates Charity Fund, contributing to 45% share ownership of Bill Gates stock portfolio.  At the same time, Bill Gates has sold most of the Microsoft shares (only keeping about 1%), focusing in charity project with a portfolio of giant stocks.  Berkshire invests in a portfolio of global giant stocks including 40% in Apple, founded by Steve Jobs, which is a competitor of Microsoft.

So, it is interesting that the fate of these 3 giant stocks are integrated together in the same boat: Berkshire, Apple and Microsoft.  Microsoft has evolved beyond PC into other high businesses such as cloud services and gaming. Apple is transforming from PC to mobile phones, even planning on Apple Car to compete with Tesla in future. Berkshire (through Warren Buffett) is the smartest, no need to work hard on any business, simply making decision to invest in the right stocks (eg. average up on Apple stock investing).

Optimism levels of these 3 stocks are 90% (Microsoft), 50% (Apple) and 60% (Berkshire) respectively. Microsoft is more suitable for short term swing trading (Buy Low Sell High) while Apple and Berkshire may be considered for short term momentum trading or even growth investing for long term (moderate optimism at fair value).

Both Microsoft and Apple have dominated the world technology for the past few decades, having potential to continue the influence for another decade with condition the businesses must evolve at the same time with new technology. It is hard to invest in any technology stock for long term as few technologies could last over 1 decade without challenges of disruptive technologies. So, technology stock investors need to monitor the evolution of technology (which contributes to 7 of 10 Top 10 World Richest persons stocks) at least yearly.

#5) Mark Zuckerberg – Facebook (US NASDAQ: FB)

Facebook rises fast with popularity of internet, leveraging on power of networking with 3 billion global users, supporting founder Mark Zuckerberg to be the youngest Top 10 World Richest person. Even Facebook co-founder, Eduardo Saverin, becomes Singapore Top 10 Richest persons, but no need to work, simply holding tight to Facebook stock ownership.

Facebook stock is at 35% Optimism level. It is a strong young growth giant stock but short term momentum is slowed down with sector rotation during recovery phase of pandemic. It is more suitable for short term swing trading (Buy Low Sell High) in the current stock market.

#6) Zhong Shanshan – Nongfu Spring (HKEx: 9633)

By right, this position (China No 1 richest person, world Top 10 richest person) should be reserved for Jack Ma of Alibaba but due to abandon of IPO of Ant Group, it is taken over by Zhong Shanshan, the founder of both Nongfu Spring and Beijing Wantai Biological Pharmacy (China Shanghai: 603392).

Nongfu Spring is at 50% Optimism level but more meaningful for short term momentum or swing trading as it is still a very young stock with IPO less than 1 year.  Political economy has strong influence on China related stocks (recent stock correction of Alibaba is a good example), therefore more speculative in nature. Diversification is key for investing in China related stocks.

Currently, out of Top 10 World Richest, 8 are from US stocks, 1 from Europe stock, 1 from China stock.  This shows the strength of US as No 1 economy with the most number of richest people with giant businesses. In the near future, more China stocks may join this Top 10 World Richest list (eg. Jack Ma but only if Ant Group could get approval for IPO).

#7) Larry Page – Alphabet / Google (US NASDAQ: GOOGL / GOOG)

#10) Sergey Brin – Alphabet / Google (US NASDAQ: GOOGL / GOOG)

Both Larry Page and Sergey Brin are co-founders and major shareholders of Google (Alphabet stock), therefore naturally both are listed in Top 10 World Richest list. During pandemic, Google reported stronger business growth, similar to other technology giant stocks which profit from COVID-19 crisis.  In future, Google may also share a pie of electrical car industry with its AI and car system development, extending from search engine and mobile phone system businesses, into other future technologies with extensive R&D for decade.

Alphabet (Google) stock is at 70% Optimism level, both a growth stock for investing and momentum stock for short term trading.  Unlikely other giant technology stock, growth of Google is more sustainable (moderate), may be considered for longer term investor, therefore each future global stock crisis will be an opportunity for investing (Buy Low & Hold) until Google may become an outdated technology stock (similar to Nokia, Yahoo or Motorola, which has been obsolete or out of fashion). Therefore, a giant technology stock has to continuously develop future new technology, renewing itself to remain competitiveness and lifespan of a giant.

#9) Larry Ellison – Oracle (US NYSE: ORCL)

Oracle is a software giant stock, supporting the founder Larry Ellison to be the Top 10 World Richest person.  Position of No 9-10 are marginal, changes in daily share prices may change ranking easily.  So, the key may not be to invest in the highest position of Top 10 list but to use the list a reference, filtering giant stocks with growing business, ideally entering during stock market crisis (without affecting the business).

Oracle stock is at 50% Optimism level, more cyclical in business than other Top 10 World Richest stocks It may be considered for both cyclical investing and swing trading.

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90% of majority wealth in the world is with 10% of minority in rich people. Therefore, a smart stock investor may align interest with the Top 10 Richest persons in each country or in the world. However, it is important to focus in only 10-20 giant stocks with sustainable business with forward looking economic moat, diversifying over several sectors (instead of investing in only 1 sector, eg. technology, which may suffer in version 2.0 dotcom bubble one day). There are also many other little giant stocks which are relatively less well known but having more upside potential in stock prices than the famous giant stocks of the richest persons.

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There are over 1500 giant stocks in the world based on Dr Tee criteria, choice of 10 Dream Team giant stocks have to align with one’s unique personality, eg. for shorter term trading (eg. momentum or swing trading) or longer term investing (cyclic investing, undervalue investing or growth investing). Readers should not just “copy and paste” any stock (What to Buy, When to Buy/Sell) as successful action taking requires deeper consideration (LOFTP strategies – Level / Optimism / Fundamental / Technical / Personal Analysis) which you could learn further from Dr Tee Free 4-hr Webinar.

Drop by Dr Tee free 4hr webinar (learning at comfort of home with Zoom) to learn how to position in global giant stocks during COVID-19 stock crisis with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Zoom will be started 30 min before event, bonus talk (Q&A on any investment topics from readers) for early birds. There are many topics we will cover in this 4hr webinar, Dr Tee can have more time for Q&A if you could stay later after the webinar, you could ask on any global and local stocks including but not limited to 30 STI component stocks:

Ascendas Reit (SGX: A17U), CapitaLand (SGX: C31), CapitaLand Integrated Commercial Trust (SGX: C38U), City Development (SGX: C09), ComfortDelGro (SGX: C52), Dairy Farm International (SGX: D01), DBS Bank (SGX: D05), Genting Singapore (SGX: G13), Hongkong Land (SGX: H78), Jardine Cycle & Carriage (SGX: C07), Jardine Matheson Holdings JMH (SGX: J36), Jardine Strategic Holdings JSH (SGX: J37), Keppel Corp (SGX: BN4), Keppel DC Reit (SGX: AJBU), Mapletree Commercial Trust (SGX: N2IU), Mapletree Industrial Trust (SGX: ME8U), Mapletree Logistics Trust (SGX: M44U), OCBC Bank (SGX: O39), SATS (SGX: S58), Sembcorp Industries (SGX: U96), Singapore Airlines (SGX: C6L), Singapore Exchange (SGX: S68), Singtel (SGX: Z74), ST Engineering (SGX: S63), Thai Beverage (SGX: Y92), UOB Bank (SGX: U11), UOL (SGX: U14), Venture Corporation (SGX: V03), Wilmar International (SGX: F34), YZJ Shipbldg SGD (SGX: BS6).

Dr Tee will cover over 20 case studies, Singapore giant stocks, eg. CapitaLand Mall Trust (SGX: C38U), Singapore Exchange (SGX: S68), Keppel Corp (SGX: BN4), Top Glove (SGX: BVA), Jardine Matheson Holdings JMH (SGX: J36), Vicom (SGX: WJP) and many others, Malaysia giant stocks, Hong Kong giant stocks and US giant stocks, both long term investing and short term trading.

There are limited tickets left for this 4hr free webinar, please ensure 100% you could join when register: www.ein55.com

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Filed Under: Market Cycle Investing, Market Outlook, Stock Market Tagged: , , ,

Watching NASDAQ to 10000 Points (旁观者迷)

Posted on June 11, 2020 Written by
NASDAQ 10000 Points US Stock Market

10000 points tonight is an important milestone for Nasdaq (mainly technology stocks) as in Year 2000 Dotcom Bubble, it also fell down from “new” peak of 5000 points to about 1/3 of value. After 20 years later, the key difference is this time the driver is V-shape recovery after over 30% major correction which shows the power of “unlimited QE”.

US is more suitable for shorter term trading, especially momentum trading with support of greedy mass market. Trend-following may be required for some traders as optimism is back to high level for both NYSE and NASDAQ stock markets in US. Global stock markets (STI, KLCI, HSI, SSEC, DAX, etc) also recover well but not as bullish as US.

It may be hard to compare Apple (eg. US stock market) with Orange (eg. Asian stock market) but they are still connected as both are fruits (global stock market), therefore when demand for Apple is higher, likely demand for Orange may be higher as well.

At the same time, within each fruit, an investor should look for better Apple or better Orange as it may be confusing to apply the Orange criteria (eg. sweatness) on selection of Apple (eg. crunchy).

In short, you don’t have to like Apple or Orange but need to ensure their prices would be higher in future based on the timeframe of your interest.

Trading may not be suitable for everyone. Those who prefer to buy and forget may be more suitable for investing. There are a few who could invest and trade at the same time but applying 2 different strategies, even if the stock is the same.

When there is a reversal (eg. bear to bull), some would be happy (those who take actions to buy), some may feel sad (those who wait but now uncertain whether decision is right).

In fact, there is no need to worry as there is no right nor wrong in stock market. A trader or investor needs to have a trading plan or investing strategy as an “anchor” to position oneself (aligned with own personality), else will be drifted each day by the wave of stock market, confused with up or down until giddy, may make a “wrong” decision by following others who shout louder.

Covid-19 conditions (both # daily infected cases and death cases) are getting much better for major economies (US, China, Japan, Europe) and also in Singapore. If you follow Dr Tee articles and video education (www.ein55.com/blog) over the past 4 months since the pandemic started in Feb 2020, summer 2020 was a key factor and global Covid-19 trends have been reported to fade away by then.

With restart of economies in most global countries from June 2020, economy starts to show V-shape recovery. Oil price at low optimism starts to recover strongly after the negative oil price a few weeks ago, preparing for higher demand by the world after lockdown is over.

US job market is improving for May 2020, S&P 500 rises to another high of nearly 3200 points, could break historical high of 3300+ points if this momentum continues in June. Asia stock markets also recover gradually with less fear.

Warren Buffett is not wrong (selling Airlines stocks and bank stocks) as his actions are aligned with his own personality (sell when outlook is uncertain or beyond his knowledge) and this is only his partial stock portfolio, still holding lots of other stocks. So, even if stock market is truly recovering, Warren Buffett and Berkshire would benefit (rising in stock prices is a proof).

Those investors who follow Warren Buffett blindly (copy his actions and even extend to sell all stocks) are wrong as they don’t align the strategies with their own personalities, some even greedy to wait to buy all stocks at the lowest point (which no one knows), may end up missing the opportunity boat or given option to buy at much higher prices (旁观者迷).

There are 2 ways of analysis: relative and absolute way. Therefore, even for a bearish stock market or economy, some may view “less negative” as positive. This is similar to a weak business which should lose $1M yearly but when losing “only” $100k, it is considered positive.

Ideally economy should be strong to support stock market. However, during Covid-19 crisis, relative method may be applied.

Stock market is forward looking, therefore some traders prefer to look at price alone which could reflect most of the key market factors including emotions. A smart investor may combine business fundamental and trading together. The biggest enemy is usually ourselves, whether we are comfortable with the strategy, either short term trading or long term investing.

Analysts who have been bearish would keep quiet for a few weeks, then more posts will come out when there is correction over 10% again. Now, there will be more posts on bullish stock market. Readers would hear different views each time, eventually not able to take action at all if simply follow others.

There are always 2 views of market: bull or bear, that’s why for each transaction, there is always a pair of buyer and seller. Don’t follow analysts blindly. Instead, leverage on the views, do additional filtering, aligning with own personality.

No expert would know what may happen for tomorrow’s share price but in longer term, business with sustainable growth would have higher chance to make profits in business to support the rising price.

Since no one could see the future, a stock investor may need to apply probability investing during this uncertain period: position in 10-20 giant stocks (strikers / mid-fielders / defenders) with strategies (eg. momentum / growth / dividend / undervalue, etc) aligned with own personalities (eg. short term trading or long term / life investing), minimizing risks with multiple entries / exits.

It is fun to “watch” and cheer in the football game but at the end, observers may waste the time and money if not able to take even the first action nor having a clear strategy.

Running out of ideas of What Stocks to Buy? Read hundreds of articles by Dr Tee over the past few months of global stock crisis.

Drop by Dr Tee free 4hr investment course to learn how to position in global giant stocks with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Learn further from Dr Tee valuable 7hr Online Course, both English (How to Discover Giant Stocks) and Chinese (价值投资法: 探测强巨股) options, specially for learners who prefer to master stock investment strategies of over 100 global giant stocks at the comfort of home.

You are invited to join Dr Tee private investment forum (educational platform, no commercial is allowed) to learn more investment knowledge, interacting with over 9000 members.

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)
Filed Under: Macroeconomy, Market Cycle Investing, Market Outlook, Stock Market Tagged: , , ,

Stock: To Buy or NOT to Buy Now? 左右为难

Posted on April 9, 2020 Written by
Stock To Buy US Singapore

Some Ein55 forum members may not take any action in stock market for 5-10 years which I can understand is to wait for global stock crisis. The current global stock crisis worth attention for long term or even life-time investors.

Global stock market experienced a mini roller coaster ride, major correction of 20-30% in 1 month, recovering about 10-20% in last 2 weeks, leading for US, following by China and Germany (Europe), lagging for Hong Kong and Singapore),So, for current global stock market, “To Buy or NOT to Buy Now” is $1 Million worth of question to many people, especially this could be 5-10 years opportunity, may not come back easily if missed. When positioned right, one could save 5-10 years of waiting time. When positioned wrong, one could lose more (buy low get lower). It is a dilemma when one is standing at a junction of the investing path (左右为难), especially for those who have not done any new entry yet on stock, not sure whether to take the risk or miss it totally.

I just worry that some readers may aim for very low (eg. STI to drop to 0% optimism or S&P 500 to drop to 25% optimism) which is Level 4 stock crisis. What if it never comes eventually (eg. Coronavirus may fade away by summer, V-shape recovery in global stocks and monthly economy).

If one only has 1 bullet for investment, I assume it is trend-following and we just observe the first signal (1 day above 20 days moving average of stock index prices for at least STI and S&P 500, likely for most global stock indices). Next signal may be another 10% higher stock price with 1 day above 50 days moving average of stock prices. Will the readers give up the opportunity because of worry this is technical rebound before falling to another bigger crisis?

To be frank, current “global stock crisis” is only Level 3.5 crisis, which is similar to Euro Debt Crisis or Asian Financial Crisis, a regional crisis affecting half of the world, but not yet for US (only a major correction from high optimism to mid optimism of fair price).

Since we don’t know the scale of crisis (depending on condition of Coronavirus), if one does not follow the price trend (eg bear to bull reversal), insisting to aim for the lowest point (eg. STI below 2000 points or S&P 500 below 1500 points), else no entry, may miss the opportunity if it is just a major correction.

Stock market US Europe Singapore Hong Kong China

Based on Coronavirus world / Singapore condition, Apr 2020 is likely the most severe, double the cases every 7 days (see my earlier article, “predicting” Singapore would double from 1000 to 2000 cases by this weekend, which is coming soon with record daily new high of 287 infected cases today). However, we have a few key references, proving that Coronavirus could fade away in about 4 months if proper lockdown and isolation at home is implemented for 1-2 months.

China – successful model (full cycle completed)

Korea – runner up, cycle nearly completed

Europe / Iran – 3rd place, downtrend for over 7 days

World (US, SG, Asia ex China and Korea) – last phase, some see early signal of 1-2 days downtrend but not stable.

If Coronavirus does not discriminate the country (assuming all follows similar way of 100% isolation at home), then there is a good chance to see positive results as China and Korea, even we don’t know the future. This is similar to stock investing, when we follow certain strategies, even we don’t know the future, the chances of winning are high but one need to take calculated risks (tolerance level is different for each person, some could not take even 1% “loss” for 1 day, regretting immediately after entry).

To compromise in between the fear of missing out (miss the chance if does not invest if the worst is already over) and fear of losing in greater crisis to come (buy low get lower), Ein55 readers may consider multiple entries as described in a few earlier articles.

Here are the summary of steps in 1 possible strategy for current stock market (sharing for educational purpose, please make your own decision):

1) What to Buy

Focus in global giant stocks, prefer 50% portfolio having at least >3-5% dividend yield as protection, in case if it crisis get worse from Level 3.5 (regional / 50% world) to Level 4 (global financial crisis) or even Level 5 (Great Depression, affecting world economy for 2-5 years, similar in scale as 1929 Great Depression), then investors could average down (but trend-following traders need to cut loss following the exit plan).

There are over 1500 global giant stocks (based on Dr Tee unique criteria of Giant Detector). Long term value investor (especially for contrarian investor) may focus more on dividend giant stocks, about 100 in the world. Trend-following traders or investors may focus on growth stocks (may not have dividend). Some could compromise in midfielder stocks on growth dividend giant stocks, having the best of 2 worlds, could invest (for dividend during winter low optimism market) and trade (for capital gains during spring with higher optimism market).

2) Capital Allocation – Multiple Entries

Set a few multiple entries point, decide how many bullets to trigger, could be (1 x 100%), (2 x 50%), (3 x 33%), (5 x 20%), (10 x 10%), etc.

If only 1 stock at 1 time due to limited capital, then reader may consider index ETF (allow diversification, eg S&P 500 ETF, Hang Seng Index ETF, MSCI World ETF or STI ETF, etc), not perfect but safer than only buy any individual stock.

3) First Entry

Trigger the first bullet when see the first signal acceptable to own criteria, eg. counter-trend (eg. when price is below 25% optimism or even coming to 0% optimism) or follow-trend (eg. when see higher high and higher low, or price is above 20 days moving average as a few days ago).

The beauty of trigger the first bullet is one would not worry of missing the boat (eg 1/5 capital may be positioned), even if stock market recovers without returning to lower prices than the first entry, at least the investor still has 1/5 gift from heaven, better than empty handed. Traders may average up to follow the trend after 1/5 is winning and signal becomes clearer, Coronavirus becomes weaker while global QE or stimulus plans could be more (nearly everyone will get Ang Pao or relief fund from local government).

When the first entry is position, an investor would have a reference to compare for next entry, either X% lower to buy more for value investor, or Y% higher to buy more for trend-following traders. X% and Y% could be aligned to own personality, eg 5 or 10%.

4) Remaining Entries (Conditional)

For remaining bullets, one may trigger based on strategies, either counter-trend (every 5-10% lower in prices from first entry, trigger second entry) which is more for investing, or follow-trend (eg. every 5-10% higher in prices from first entry, trigger second entry) which is more for trading.

For trading, needs to have S.E.T. in plan, including cut loss when down by X%, eg 5 or 10% (to protect yourself in case it is just a technical rebound over the past few 2 weeks, still can preserve capital to buy in next reversal signal after the second dip). For investing, lower prices is blessing in disguise as price is lower each time with higher dividend yield, therefore stronger holding power.

5) Hold (Monitor)

Review portfolio regularly, not just to check stock prices, also ensure business fundamental is within expected level (eg. for sectors directly affected by Coronavirus, likely will make a huge loss, may not consider even if they are still giant stocks based on current prices and FA till now which may not have Q1 FA yet).

6) Sell (Exit)

For exit strategies, it is a good problem to have as you probably have make money by then one day, worry if the profits may disappear one day if not sold on time or hoping for higher upside with more capital gains.

You could learn further from Dr Tee in future 6-day Ein55 course, currently focusing more on potential entries and risk management.

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To a country government, probably need to spend 20% of yearly GDP in supporting economy (eg. pay for partial salary) 6-12 months but they could save 1-2 years of GDP (if falling to global financial crisis) or 3-5 years of GDP (if falling to Great Depression). When US stock market falls in last 1 month of crash, about US$12 Trillions was evaporated. So, QE of US$2 Trillions by Trump to save $12 Trillions of people’s wealth hidden in stock market is definitely a good deal (not to mention property market’s wealth which is not affected yet).

When S&P 500 is back to above 3000 points, STI is above 3000 points, global stock markets are back to 90% of original stock level, then global people would continue the bull market, win-win for all parties. Political economy has to consider popular support based on both stock market and economy. S&P 500 is report card of Trump, he only has time until summer (Jun – Aug) to show the report card above 3000 points again (possible as S&P 500 fells from 3300+ points to 2200+ points by 1/3, recovering to 2800 points today, only less than 10% upside away).

There is no need to worry if current stock market rally is dead cat bounce (Technical Rebound) or true recovery (worst is over, boat sailing off without return). Readers may just focus on what are known (intrinsic value vs price, optimism level, business fundamental, Coronavirus trend and successful experiences, government QE, etc – within 55 Ein55 investing styles) today to make a decision with calculated risks within tolerance limit (eg diversification over a portfolio of giant stocks, protected by dividend payment during potential long winter, position sizing, trend-following or simply cut loss when exceed the acceptable loss limit, etc).

I am not asking Ein55 readers to buy stocks now (sharing here is for education purpose, please make your own decision). I am urging all to use the free time at home this month to review your stocks, then taking the right actions (buy, hold, sell, wait, shorting) with strategies aligned to your personality. At least there is no regret when crisis is either over or becoming Level 4 or Level 5 crisis in future as you have planned for them. Even your decision is to do nothing now, it is also fine as you have given yourself a chance by reading until here.

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Drop by Dr Tee free 4hr investment course to learn how to position in global giant stocks with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Learn further from Dr Tee valuable 7hr Online Course, both English (How to Discover Giant Stocks) and Chinese (价值投资法: 探测强巨股) options, specially for learners who prefer to master stock investment strategies of over 100 global giant stocks at the comfort of home.

You are invited to join Dr Tee private investment forum (educational platform, no commercial is allowed) to learn more investment knowledge, interacting with over 9000 member.

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Filed Under: Market Outlook, Stock Market, Technical Analysis, Value Investing Tagged: , , , , , , , ,

Airlines Stock Crisis: Delta Airlines vs Singapore Airlines

Posted on March 7, 2020 Written by
Airlines Stock Crisis: Delta Airlines vs Singapore Airlines

Both Delta Airlines (NYSE: DAL) and Singapore Airlines (SGX: C6L) are well known international airlines. However, choice of stock for investing is different from choosing airline as a passenger. We need to consider from investing perspective, both business performance and share prices.

Delta Airlines is a giant airline stock with strong business fundamental. No wonder Warren Buffett starts to collect more of this stock despite the price falls like a knife which he is not afraid to catch it as he believes the bleeding period is within his tolerance level to exchange for 1/3 discount (26% optimism, near to low optimism <25% but in downtrend direction, Ein55 members may monitor when it may recover again while optimism is still low).

Our dear Singapore Airlines is not a giant stock, fundamental is below average, optimism (28%) is approaching low (towards 25%) but long term potential is relatively weaker, more suitable for short term trading (when timing is right), not for investing.

Some smart investors select stocks as if choosing life partner, holding for long term to maximize the value of partnership, therefore won’t miss when the rare opportunity has come. However, no one would know the “perfect” moment (eg. the lowest price). For Warren Buffett, he just needs to buy with discount within his acceptable limit, buy low enough, no need to speculate the lowest price and he could hold till recovery in both business and share prices.

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Drop by Dr Tee free 4hr investment course to learn how to position in global giant stocks with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Learn further from Dr Tee valuable 7hr Online Course, both English (How to Discover Giant Stocks) and Chinese (价值投资法: 探测强巨股) options, specially for learners who prefer to master stock investment strategies of over 100 global giant stocks at the comfort of home.

You are invited to join Dr Tee private investment forum (educational platform, no commercial is allowed) to learn more investment knowledge, interacting with over 9000 members.

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)
Filed Under: Fundamental Analysis, Market Outlook, Stock Market Tagged: , , , , , , , ,

Winter Time of Global Airline Stocks

Posted on March 6, 2020 Written by
Winter Time of Global Airline Stocks

First major airline in trouble after only 2 months of Coronavirus crisis. Flybe is the largest regional airline in Europe, cannot even sustain a few months of winter time, may not able to “fly” again due to lack of funding.

At the same time, Warren Buffett is indeed different from others, holding to 4 major airline shares: Delta Airlines (NYSE: DAL), American Airlines (NASDAQ: AAL), Southwest Airlines (NYSE: LUV) and United Airlines (Nasdaq: UAL). In general, airlines sector stocks (NYSEAcra: JETS ETF) have dropped about 1/3 share price over the past 1 month from its peak. There is more downside with bearish short term stock market, both at Level 3 (US stock market under correction, even recent 0.5% interest rate cut by the Fed won’t help to recover the confidence) and Level 2 (less travelling, “doom” for airline, burning money each month).

“Be greedy when others are fearful” is correct in principle but may not be suitable for everyone as it requires more investing skills than expected. Warren Buffett could be greedy now (eg. buying more Delta Airline stock) during crisis because he has a deep pocket with strong holding power with diversification over many industries. However, it may not be wise for others to follow Warren Buffett exactly as each person has unique personality, financial condition and investing strategy. Warren Buffett’s Berkshire (NYSE: BRK) loses 50% share price during 2008-2009 subprime crisis but he could still sleep soundly each night. Others may suffer depression with 50% loss in capital.

For retail investors and investors with small capital, weak holding power and low risk tolerance level, it is relatively safer to follow trend for entry or exit. Airline stocks are usually cyclic in nature, main strategy would be buy low sell high. Currently it is only a Level 2 crisis (airline sector earning drops significantly), but if Coronavirus drags longer than 6-12 months, it could become regional crisis (some countries economy will be affected) or even evolving into the next global financial crisis.

If we don’t know Coronavirus well (how it started and when it may end), shorter term investing or holding cash as opportunity fund would be relatively safer. In the meantime, smarts investors have to start to search for global giant stocks with strong business fundamental which can last through the potential financial crisis.

Learn from Dr Tee free 4hr course on Crisis Investing Strategies (What to Buy, When to Buy/Sell), either for Coronavirus Crisis (affecting consumers related sectors such as airlines, retailers, tourism, F&B, transportation, etc) or global financial crisis (affecting all sectors and all countries in the world). Register Here: www.ein55.com

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Filed Under: Macroeconomy, Market Cycle Investing, Stock Market Tagged: , , , , , , , , , ,

Read in Between the Lines for Financial Reports – Tesla

Posted on March 5, 2020 Written by
Tesla Financial Reports

Tesla (NASDAQ: TSLA) is a young giant stock with electric car technology yet to be proven profitable in future. The company has been “losing” money or making net loss over the past 10 years, mainly due to tremendous R&D expenditure and investment to expand its business.

For emerging technology stocks (eg past young giants such as Alibaba, Facebook, etc), usually first few years or even longer period, company may suffer losses. Tesla has been “losing” money in terms of profit but sales or revenue has been increasing.

Young giant stocks may need to “burn money” in exchange for bigger market share, so that next time it can become an economic moat to start making big money. So, smart investors need to read in between the lines for financial reports, not just profit or loss.

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Drop by Dr Tee free 4hr investment course to learn how to position in global giant stocks with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Learn further from Dr Tee valuable 7hr Online Course, both English (How to Discover Giant Stocks) and Chinese (价值投资法: 探测强巨股) options, specially for learners who prefer to master stock investment strategies of over 100 global giant stocks at the comfort of home.

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Filed Under: Fundamental Analysis, Stock Market Tagged: , , , ,

Invest in 4 Credit Card Giant Stocks (Visa, Mastercard, AMEX, Discover)

Posted on February 27, 2020 Written by
credit card stock visa mastercard amex discover

Would you like to pay by Card or Cash or Cheque? When Dr Tee was still a university student about 30 years ago in US, this was the common question asked at that time. During university time, as a student without income, I was “given” or mail directly to home, a few credit cards each year (the T&C was to use it to activate, else just discard it to reject). Until today, the question is still about the same but having more choices for electronic payment.

With increasing cashless and credit payment over the decades, both credit card companies and banks (issuers of credit cards) can make a lot of profits with fees paid by merchants. At the same time, consumers are tempted to purchase more (pay later, sometimes with discount), therefore merchants could gain back the “losses” of fees paid to credit company.

So, technically, the more one spends, the more everyone gains, until one day, when there is a credit crisis (eg. during global financial crisis: dotcom bubble after year 2000, subprime crisis in 2008-2009), then when consumers spend less, then the lower gains (not even loss) to the credit card industry, would induce a crisis in credit card company share prices.

Here are 4 credit card giant stocks with strong business fundamental behind each of them which requires 2 main investing strategies, cyclic investing or growth investing:

1-2) Visa (NYSE: V) & MasterCard (NYSE: MA)

Visa or MasterCard? This is the question asked 30 years ago, still asked today, could be 30 years later by most merchants for payment. This is a duopoly, dominating the credit card industry for decades. They have a wide global network of payment which is a strong economic moat, younger competitors are hard to get nearer.

For both Visa and Mastercard, the share prices has gone up about 20 times (yes, 2000% profit) over the last decade since recovery from the last financial crisis. Visa is relatively more defensive than Mastercard.

Both credit card companies are more suitable for growth investing strategy (Buy & Hold), buy low during global financial crisis and hold for long term capital gains. Even for short term, sometimes they are suitable for momentum trading (Buy & Hold for a period of time, eg weeks or months), but more suitable for bullish stock market with strong uptrend (Buy High, Sell Higher)

3) American Express (NYSE: AXP)

Technically, American Express (AMEX) is not a credit card (a charge card instead). For convenience, we group it under credit card stock for comparison. AMEX is more costly to merchants (higher fee), therefore the coverage is not as wide as Visa or Mastercard.

AMEX is considered a relatively weaker (among 4) credit card giant stock, growth is slower. It is more suitable for cyclic investing strategy (Buy Low Sell High), share price has gone up about 10 times over the past decade since global financial crisis.

4) Discover Card (NYSE: DFS)

Discover Card is still considered a “young” credit card, despite Dr Tee has used it about 30 years ago when I was still a student in US. I like Discover card 30 years ago as I remember it could give about 2% cash rebate which was a new idea at that time (getting cash back by spending) but now very common in many other credit cards.

Discover card is listed under Discover Financial Services (DFS.NYSE). It is a giant credit card stock with strong fundamental but more suitable for cyclic investing (Buy Low Sell High), share price has gone up about 10 times over the past decade since global financial crisis.

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Warren Buffett also has 3 credit card companies shares (AMEX, Visa, Mastercard) under his stock investment portfolio. When others in the world are spending money, these credit companies including Warren Buffett are making money around the clock, every second.

As a retail investor, you may not have the capital as Warren Buffett to buy so many stocks. Therefore, we need to be selective in stocks for investment. You can start your investment journey to establish a dream team portfolio of 10 best stocks in 10 promising sectors / countries, leveraging on the next global financial crisis to buy low, either sell high or hold long term in future.

Drop by Dr Tee free 4hr investment course to learn how to position in global giant stocks with 10 unique stock investing strategies, knowing What to Buy, When to Buy/Sell.

Learn further from Dr Tee valuable 7hr Online Course, both English (How to Discover Giant Stocks) and Chinese (价值投资法: 探测强巨股) options, specially for learners who prefer to master stock investment strategies of over 100 global giant stocks at the comfort of home.

You are invited to join Dr Tee private investment forum (educational platform, no commercial is allowed) to learn more investment knowledge, interacting with over 9000 members.

Dr Tee Investment Course (Stock, Property, Commodity, Forex, Bond)
Filed Under: Market Cycle Investing, Stock Market Tagged: , , , , , , , , ,
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