Imagine yourself running a bank.
Each day, hundreds of customers walk into your bank to ask you for loans. Thus, the question is, ‘To whom will you approve their loan applications?’ and ‘Which of these customers’ loan applications will you reject?’
Well logically, you will set up credit policies for your bank. These include getting a list of documents from your customers so that you could assess their financial background and debt repayment behaviours before granting them loans. This is a measure to reduce the risk of bad loans and ensure that your bank could earn a steady flow of interests from loans to these good customers.
But what if you don’t have a credit policy to select good customers?
Then, you’ll risk having both good and bad customers for your bank. Likewise, it is the same with stock investing. How many investors have sound credit policies when investing? That is how most investors lose money in the stock market and believe that stock investing is ‘risky’.
Thus, in our next 1-Hour Webinar, I’d roped in Ian Tai, my partner at KCLau.com, to illustrate with a case study on his credit policy when assessing stock deals. As a result, like a good banker, Ian could select good stocks and avoid bad stocks in the stock market. This is so that Ian can lower the risk of losses from bad stocks and focus on earning a steady flow of dividends from his stock portfolio. Hence, we would discuss the following:
– Ian’s Investment Framework (Credit Policy)
– The Simplest Method to Assess a Stock’s Business Model.
– The 10-Minute Test to Evaluate the Financial Results of a Stock.
– The Art of Stock Valuation.
– Case Study Walkthrough of a Real Life Stock