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Why the Stock Market Is Like an Endless Conveyer-Belt Sushi Buffet
Perspective | 18 February 2014
Related stocks:
C07
D01

This article is written by Stanley Lim, CFA, from Motley Fool Singapore

Do you know friends who tend to be furious if possible opportunities pass them by or get jealous when others have a lucky windfall? Or perhaps, you might know others who become easily excitable when they hear about the next ‘hot tip’, wanting to jump into action for fear of missing any possible gains.

For such folks, it’s perhaps unfortunate to say that their journey to investment riches would more than likely not end well given how they’re so susceptible to their own human emotions.

All You Can Invest Buffet
The stock market is like an endless conveyer-belt sushi buffet.

In a conveyer-belt sushi buffet, when your favourite piece of tuna or salmon sashimi moves past your table and gets taken off the belt at the next table, you are nonplussed. That’s because you know that the next delectable piece of sashimi delight would be back on the buffet train soon enough.

And, that’s exactly like how the stock market works. Let’s say you’ve missed the four-fold rally to $36.87 in conglomerate Jardine Cycle & Carriage’s (SGX: C07) shares from its bottom of around $9.00 during the global financial crisis. Or that you’ve never owned shares of retailer Dairy Farm International Holdings (SGX: D01) despite its wonderful multi-baggers returns over the past 20 years. Those are still not reasons to get upset over.

That’s because similar opportunities will likely be arriving at your table every now and then or when the next crisis comes knocking. And, it’s also good to know that just because a share has gone up X00% doesn’t mean it can’t continue climbing in the future.

Opportunity Only Knocks On The Door To Those Who Are Prepared
It is worth noting that we can spend hours on research online when buying a new camera, or even sourcing for the best deals when shopping for our groceries. Yet, when it comes to stocks, most of us hardly put in the same amount of effort to research or find the best opportunities available.

While it might often be the case where all our research efforts are spent for naught as the opportunities to pick up compelling bargains can be non-existent for periods of time, we still have to prepare ourselves for it. Only by being educated about the current market can we have the ability to spot an opportunity when we see one. And, that means keeping ourselves updated about the companies we are interested in investing and knowing what is happening in the news.

Foolish Summary
Opportunities in the stock market can even feel limitless at times. But our financial resources, no matter how rich or poor we might be, are always restricted. Therefore, the next time an opportunity slips you by, don’t get flustered or feel regret.

Instead, smile and prepare yourself for the next opportunity, which might be just around the corner…

Click here now for your FREE subscription to Take Stock Singapore, The Motley Fool’s free investing newsletter. Written by David Kuo, Take Stock Singapore tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead. The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.

The Motley Fool (fool.sg) offers stock market and investing information, offering people suggestions on how to take control of their money and make better financial decisions.

Please click here for more information about this author.

Jardine Cycle & Carriage  30.330 +0.20 +0.66%   
Business: Co is mainly engaged in the mfr, assembly, distribution, and retailing of motor vehicles and motorcycles in S'pore, M'sia, Indonesia, and Vietnam.

Insight: Apr-19, 1Q19 revenue rose 1.6% due to higher reven... Read More
Dairy Farm Int'l Hldgs  5.880 -0.03 -0.51%   
Business: Asian retail co that operates supermarkets, convenience stores & others. [FY18 Turnover] Food (70.3%), health & beauty (14.6%), restaurants (11.8%), home furnishings (3.3%).

Insight: Feb-19, FY18 net profit plunged 77% to US$92m due ... Read More


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