Common Investment Mistakes – and how to avoid them: Kenny Loh Live with The Financial Coconut

In December 2021 I was invited to an interview with The Financial Coconut, where I discussed various topics such as How to avoid Common Investment Mistakes, How I personally choose stocks to invest and How to allocate your investment portfolio depending on the stage of life you are in. 

A summary of content is below, timestamps provided.


3 Stages of Losing Money: Common Investment Mistakes that I made (1:10)

  1. Ignorance: Simply listening to word of mouth in what to invest. Investing in something despite not knowing anything about the stock itself. 
  2. Not enough experience: Investing without the required experience in the market or sector (2:16)
  3. Putting all your eggs into one basket: A very common mistake. One of the companies that I invested in was discovered to have commited fraud after an audit, resulting in the suspension of the stock. (4:16) Diversifying your portfolio is very important.

Why Diversification is so important (and why I do so for my clients) (7:53)

Behavioural Coaching, focusing on your primary objective when you invest (8:44)

What makes a Diversified Portfolio? (10:04)

Don’t chase stocks that are going up. Stocks are usually cyclical. (9:43)

How and why do different asset classes rotate?  (12:32)

Smart Money and 2 main groups of retail investors: (15:00)

  1. Momentum investors (chasers)
  2. Value investors: Those that look at financial ratios and pick the right stocks

Differentiating “noise” and business facts (16:35)

  • Is a business is not doing well because of poor financial ratios;
  • or because of “noise”? (One time events like the pandemic)

How I personally choose stocks to invest, how I enter the market and how much do I choose to allocate (16:35)

How do I diversify my Portfolio, at my stage of life? (21:10)

  • Unit Trusts are a good way to diversify your portfolio with a small amount of funds.
  • Fresh grads: Build a more aggressive portfolio to maximise growth over the long-term. Better to use a Monthly Saving Plan for Dollar-Cost Averaging (DCA) (21:31)
  • Late 20s-30s, preparing for marriage, BTO etc: A little more defensive portfolio, while ensuring your investments are mainly liquid (in case you need to pay for mortgage, etc). A mix-and-match of asset classes like REITs, Bonds, Equities etc. (24:13)
  • 40s-50s: Midlife crisis may mean losing your job is a possibility. A more defensive portfolio, more dividend-based stocks (e.g. REITs). To be able to rely on dividends in case you lose your job. A larger focus on growth stocks may be desired to further grow your wealth as you head into retirement. (25:49)
  • Close to Retiring/Retirees: Focus on building a passive income portfolio. The main focus at this stage is to protect your wealth.  (29:56)

Confessions of a Full-Time Trader: Why it (probably) isn’t for you (28:27)

Different Ways of Diversifying your Portfolio (34:29)

  • Asset Classes (Commodities, Bonds, REITs, Equities, Alternative Investments, Cryptocurrencies etc.)
  • Geographical (Different Countries)
  • Sectors (Different Sectors in each Asset Classes, e.g. Technological Stocks, Commodity Stocks etc)

An overview on S-REITs in 2022 (38:59)

Kenny Loh is a Senior Financial Advisory Manager and REITs Specialist of Singapore’s top Independent Financial Advisor. He helps clients construct diversified portfolios consisting of different asset classes from REITs, Equities, Bonds, ETFs, Unit Trusts, Private Equity, Alternative Investments, Digital Assets and Fixed Maturity Funds to achieve an optimal risk adjusted return. Kenny is also a CERTIFIED FINANCIAL PLANNER, SGX Academy REIT Trainer, Certified IBF Trainer of Associate REIT Investment Advisor (ARIA) and also invited speaker of REITs Symposium and Invest Fair.  You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news.
You can join my Telegram channel #REITirement – SREIT Singapore REIT Market Update and Retirement related news.

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