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Investing Core Principles at #PRIC2014


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On May 28, 2014, CFA Society Philippines arranged a retail investor conference #PRIC2014 in Manila. Invited to speak was Andrew Stotz, president of CFA Society Thailand. In this slideshare YOU will find the “Investing Core Principles” and the “Stock Selection Principles” that Andrew shared during his speech.

Published in: Economy & Finance, Business
  • I’m a complete beginner in the area of investing, though I often hear those terms related to investment such as bonds, stocks, funds etc. spoken by the people around me. I’m not a business or finance major, but I found this course fascinating and interesting, in spite of some conclusions in the course that I couldn’t understand thoroughly. There is no lack of investors among the people I know. Initially, I thought each of them knew a lot about investing. However, I now realize that I was wrong. When I asked how they chose their stocks, bonds, and funds, I got diverse answers: one said, “I just follow someone”, another said “I choose stocks randomly”, while another said, “I watch television and listen to what advisors say”. Andrew makes it clear that most people, including me, just don’t know much about what we’re doing when it comes to investing. I was never interested in finance or investing, because I’m not that great at math, and I find calculations to be boring and too complex for me. Andrew’s “12 Steps to Financial Freedom” taught me that investment is not an untouchable subject for me; on the contrary, it’s a skill that should be mastered by everyone so that we can benefit when we’re older. “Less is more” is this professor’s teaching style in this course— he clearly and vigorously tells listeners what to do about their finances and how to do it. Awesome! Andrew Stotz, you made me start to think about how to manage my money, and showed me that before I do anything else, I should be scrambling to plan and start investing my money. I love your course—have you written a book about your unique insights on investing?
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Investing Core Principles at #PRIC2014

  1. 1. Investing Core Principles & Stock Selection Principles Arranged by the CFA Society Philippines, May 28, 2014 at #PRIC2014
  2. 2. Core Investing Principles o You will not get rich in the stock market o Have a written plan o Time horizon is very long, build wealth carefully o Time is the easiest way to success in the stock market o As you get older, reduce your exposure to stocks o Every interaction with money causes emotional and biological changes in your body
  3. 3. Stock Selection Principles o Reducing risk is more valuable than picking winners o The past and present are more important and knowable than the future o Have no “memory” about any stock, be willing to buy it again o Stay concentrated, avoid owning less than 10 stocks or more than 20
  4. 4. Stock Selection Principles o Be most worried about stocks when everyone is positive about them o Don’t get stuck in any one style (value, growth, etc) or guessing when styles shift o Think of each investment as relative to another
  5. 5. “Click on the icons to follow me, or visit my website and let me know what you think…”