I always enjoy my breakfast at a small chinese restaurant in the residential area near where I stayed. The restaurant is basically operated by a married couple and the business is so good that during lunch time you need to wait for seats. Well, of course the crowd is not as ridiculous as those in KL area, but obviously that restaurant is making good cash flow everyday.
The young man (The owner), I think he only like around 30+ years old, one day approached me. He said "Hey, do you play shares? I saw you always read the economy columns".
Eddy: Oh well, I like to be sensitive with economic happenings."
Youngman: Any handsome counters to recommend?
Eddy: (Oh boy) Not really, IMHO, the market outlooks are very discouraging.
Youngman: Aiya, I still stucked with my genting.
Eddy: Oh, Genting? What is your buying price?
Youngman: 6.9 lo, now 6.4, want to make some kopi-money also difficult.
Eddy: Firstly your timing might not be right, secondly your investment horizon seems like too short. If you don't need to liquidate the assets urgently, maybe can hold it for another few years.
Youngman: Aiyo, ok la, let's see what will happen.
Youngman: (He flipped open the newspaper) You have any idea what are these columns mean? (Pointing at P.E., E.P.S in the stock section)
Eddy: (OMG) Hemm.. they are basically some indicators to help you understand more about the company. Rule of thumb is the lower P.E. the better, BUT make sure you understand the industry and other financial elements. Some buaya used simple P.E. to makan your money (Shoot, I started to sound like him)
Youngman: Oh I see. (More customers coming in and I think his wife is staring at him). Talk again.
Eddy: ....
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