Many people see stock investing as a standalone trading instrument. However, if one were to take a long-term view, it should blend into personal finance to help us build wealth as well as to earn an income. This book elicits the use of personal finance to help us assess our financial being, identify active and passive incomes, address the need to overcome inflation and how stocks can help fulfill the need for wealth building and to receive passive income.
Of course, stock investment is not without risks. Certainly arming with the understanding of how the stock market works, market psychology, past historical stock avalanches, knowing the differences between trading, gambling and investing are all the ingredients to help prepare us in this treacherous water.
This book also provides the necessary skills to enable readers evaluate stocks qualitatively and quantitatively to help build a portfolio for the long-term with the ultimate aim of wealth building for consistent passive income.
About The Author:
Brennen Pak is an engineer by training. He has a Master in Engineering, and an MBA. To date, he has accumulated more than 25 years of stocks investment experience. During the initial years, he was a relatively short-term stock trader, selling out stocks for a few hundreds of dollars of profit and holding on those stocks that he suffered paper losses. The real ordeal came about during the Asian Financial Crisis (1997-1998) when he lost a lot of money as he sold his stock holding at the peak of the crisis due to fear.
What had been the most painful lesson was that stocks rebounded sharply and shortly after he sold off a major part of his stock holdings by Q3 1998. Within less than 6 months, the stock index rebounded more than 100%. That was a wake-up call for him to be a long-term investor focusing on long-term investing. Instead of trading on penny stocks, he focused on mid-caps and blue-chips that can withstand the passage of time. This would require him to study into the fundamentals of the stocks, understand how the stock market works and to take advantage of the general market psychology to buy or sell shares. With a different investing mindset, his stock portfolio grew from strength to strength despite encountering many more crises along the way, such as the dot-com bust in early 2000, the terrorists attack on the World Trade Centre in New York in 2001, the Severe Acute Respiratory Syndrome (SARS) in 2002-2003, the Global Financial Crisis (GFC) in 2008-2009 and the Euro-zone crisis in 2011-2012. Today, he is a full time investor. He also teaches on stock investments.
Important Notes:
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