Wednesday, April 25, 2007

Gamblers or Investors???

I went to a client's place to deliver a cheque recently. She is a 55 yr old housewife. When I reached her place, there was a 3 more aunties there. I thought they were probably playing Mahjong.

When I got seated at the sofa, I realised that their eyes were glued to the TV looking at stock prices. We started to discuss about stock market shortly. I shared that I'm currently invested into SMRT, Labroy Marine, Macq Infrastracture and the rest into Asia Pacific Unit Trust.
They looked at me, tell me straight in my face "They are too slow!!! I thought you know what better to invest as a Financial adviser"

They start boasting about their shares that doubled or tripled over the last few months. They talked about all the penny stocks which they "hearsay" is good. End of the day, I'm made to look like a stupid financial adviser who do not know what stock they are talking about.

When I start sharing about medical insurance with them, they spoke with the same tone, "What? If no claim, my money cannot take back one? Then buy for what?"

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Conclusion:
There are many such Aunties and Uncles speculating penny stocks hoping that they'll double or triple.
Their investment concepts are similar to "4Ds" and "Toto". Fast money!!!
They have no idea what they are investing and they are ready to lose all their hard-earned money.
When talk about Insurance, they calculate every cent with me.
I conclude that they are Gamblers who thought they are smart investors.
They are probably the same group of people gambling their money away on Casino Ships during weekends.

2 comments:

Han Qiang said...

"the fools hopes to sell his shares to a greater fool who is willing to pay for them at a much higher price" This strategy might work in this bullish market but when the tide subsides, they will be swimming naked in the sea.

Khiat Han Hwee Adrian said...

Well said. They are hoping for waves after waves. Best if theres a tsunami.

However, they probably overestimated the odds that the Tsunami will comes.