(Article by Gieo Quang, published on Vietstock.vn)
Gieo Quang once had only 13 thousand dong in hand but still traveled from Hanoi to the South and lived in Saigon. Since then, Gieo Quang has always believed that: There are always opportunities in every situation, every market.
The world has gone through many crises, from epidemics to weapons wars, trade wars and currency wars... But in the end, the world has always developed to a new level.
According to Gieo Quang's observations, after each crisis, many companies had to close down, leave the stock exchange... But many companies also became stronger thanks to learning many lessons, restructuring and constantly innovating.
The interests of investors are always linked to the prosperity of businesses. Therefore, we have to prepare for times of crisis and difficulty:
1. Research opposing pairs of issues.
It is not difficult to realize that there are always pairs of opposing issues in life and in the market. The characteristic of these pairs of issues is that when one issue increases, good... then the other issue decreases, bad... The most obvious example is Export and Import: when the exchange rate changes in favor of export, it is disadvantageous for import...
Understanding the pairs of opposing issues, we will quickly recognize opportunities when the market is assessed as in crisis, bad, difficult.
2. Identify companies with good resistance to crisis.
The most obvious are companies that have experienced previous crises. These companies have had to go through bad, difficult times, but then they gradually stabilized and continued to develop.
For companies that have never experienced any crisis, let's look at how they have been in the last 3 years: Have their revenue and profit increased steadily; Is the composition of the Board of Directors stable; Do major shareholders sell shares…
For new companies, it is very difficult, but we can also have faith if we learn and know the company's Board of Directors: Have they ever lived through a crisis, have they ever managed a company or project through a crisis; How do they assess and prepare if a crisis comes…
3. Keep a “warm heart” and a “cool head”.
A “warm heart” is easy, just love something, our hearts will flutter every time we think about it, come into contact with it. But to have a “cool head” is more difficult, because it means we must be able to stay calm in the face of all events, and to achieve that we must understand all the rules of life, all the pros and cons of every problem, understand ourselves and know our investments. It also means we have done well the two things mentioned above.
The more the world develops, the more connections lead to more fluctuations. But that is not a bad thing, but there are always opportunities for us. So we should always be prepared so that whenever a crisis or difficulty comes, we can still be calm, confident in investing and succeeding.
Gieo Quảng
