(Writing contest entry by Gieo Quang, posted on: CafeF.vn)
“Only invest in what you know” is something that most investors remember, but not everyone can know enough to invest in stocks successfully. That is normal because there is too much information to know: The relationship between markets in the world, Macroeconomics, domestic microeconomics, State policies, Business information...
Among the many information you need to know, just information about listed enterprises on the stock exchange is a difficult mystery to solve. Although in form, the information is publicly posted on official websites or at Shareholders' Meetings. But let's try to ask a few straightforward questions, how many answers can we get that we are confident are correct, so that we can seriously dig deeper into what we already know:
1. Who are the leaders and owners of the enterprise?
Of course, the information published includes their pictures, biographies, achievements, and the number of shares they hold… But the more important things to know are: What is their mindset and personality like; How do they interact with each other; Where does their capital come from…
2. Where is the 100% correct balance sheet?
The financial reports of the enterprise are easily found on the internal website and official stock pages. But changing the numbers or unexpected losses after auditing happens frequently. Adjusting the business plan, profit targets… can still be changed easily at the last minute.
3. How stable is the production situation?
Of course, the operating reports of the Board of Directors and the Board of Management do not fully reflect the skills and productivity of all employees in the enterprise, the salary and bonus amounts in the financial reports do not fully reflect the satisfaction of everyone. The listed assets and production machinery do not guarantee that all are still in good working condition. The amount of inventory that cannot be proven will be consumed...
4. What do internal shareholders think when trading a large amount of shares?
The reason for individual internal shareholders to sell shares is always "Personal financial needs", while the reason for organizational internal shareholders is "Portfolio restructuring". So why are there "Personal financial needs" and the need for "Portfolio restructuring", there will be many answers if we know the true thoughts of internal shareholders.
5. How are the analysis reports of experts formed?
The role of experts is undeniable. But where do they get the data from, are they given special privileges to get data from sources other than those that investors can get? Are the experts owning good stocks so they share information for everyone to benefit, or are they working for a boss and are they assigned to stick with certain stocks…
6. What does the market news mean?
Most of the news about businesses comes from press releases or intentional media events. What percentage of the chance do investors have to know what business owners do not want to say?
Just that alone has created an information matrix that makes the mystery of Business Information difficult to solve. So if we do not work hard, study hard, and concentrate on thinking... to become real investors, we can only be gamblers wandering around and losing money without knowing it.
Gieo Quảng
