Sunday, 10 June 2018

Yet another case of 'diworsification'

https://www.channelnewsasia.com/news/business/hyflux-singapore-court-supervision-faces-major-challenges-10260230


Let's see how things will pan out after reorganization for the once-star homegrown Hyflux. I kind of believe that the founder (Olivia Lum) would have the tenacity to pull through, given the way she 白手起家。

I am not vested in Hyflux. Just a thought that we must stay alert at all times in our investments and hope that the ones affected by the woes will see this as a lesson learnt. Staying alert means paying attention to new business ventures and the resulting debts/earning, as well as the impact on the company's cash-flow. (Keep your eyes peeled to any news.) So your alarm bell would ring somewhere before a price landslide goes to 10% and beyond.

Even though as minority shareholders we have no means to control the business direction and its management, we cannot simply take our stake for granted and rest on our laurels.


#my200thpost
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2 comments:

  1. Diversify into 100 crappy companies is still a crappy portfolio.

    ReplyDelete
  2. Better safeguard against bad stock pick is strict money management and position sizing

    ReplyDelete

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