Stock market advice for a beginning Thai lady

[Andy from Kent]

 

As the title  says I'd like suggestions for  the Missus to learn some of   the basic  fundamentals of investing in the Thai stock market.    (Thai language please)

She has a  decent bank account and  a bit of gold and from  there,  I think the  stock market is  worthwhile for her to invest in for the long term.    I've advised her to look for stocks that pay dividends   and offer automatic reinvestment but I seek even better and more complete advice for her. 

She plays podcasts daily she says are about  charts and I think that won't be of great  help for a novice.

She also  showed me this book one day  and said he's very rare in Thailand.   She paid 2,000 THB for it.   I'm not sure but what it'd  been better to put that 2K THB into her account to buy more stock.     I hope she'll manage to get through it.  

 

 

[whiteman]

For a start the book should be invest not trade Thais trade daily. That is the problem daily trades. Yes div is the way to go 

[AlfHuy]

Tell her to invest in low risk, dividend paying stocks and to re-invest the dividends and have a long term view. Compounding is the way to go. Becoming quickly rich is, what most dream about when buying into the promises of "15%  and up, interest a year.

[ctxa]

Low risk mutual bonds tend to be a nice way for beginners to get started. Then make the jump into dividends paying stocks, and slowly slowly as years pass dedicate a fraction of your capital into higher risk assets. 

[Andy from Kent]

3 hours ago, whiteman said:

For a start the book should be invest not trade Thais trade daily. That is the problem daily trades. Yes div is the way to go 

 

2 hours ago, ctxa said:

Low risk mutual bonds tend to be a nice way for beginners to get started. Then make the jump into dividends paying stocks, and slowly slowly as years pass dedicate a fraction of your capital into higher risk assets. 

 

I agree with both of you.     

Do either of you have a suggestion about what would be a good  and hopefully fun teaching tool for a young investor?

She listens to podcasts mostly dealing with charts she says and the droning of the speaker nearly puts me to sleep.

 

 

[NCC1701A]

trade on paper first for at least six months or you will lose your shirt. 

[1FinickyOne]

A few times we have managed to get good rates on bonds from the bank.. as much as 6% but that was years ago... the govt bonds sell out quickly. 

[1FinickyOne]

1 minute ago, NCC1701A said:

you will lose your shirt. 

I know a masseuse who gets extra for that...

[Mavideol]

that's how the guy who wrote the book makes money, by selling books not buy playing with stocks   555

 

One time, long ago in the USA, there was a guy sending envelopes to people asking for them to reply back using included envelope they should place a 1 USD bill inside and he would answer back telling them how to be a millionaire, one of my neighbors did (not me, really I didn't) send 1 USD bill and received an answer from the guy and in one single line the answer was """ do as I do """   ????????????

[RichardColeman]

4 hours ago, Andy from Kent said:

She also  showed me this book one day  and said he's very rare in Thailand.   She paid 2,000 THB for it.   I'm not sure but what it'd  been better to put that 2K THB into her account to buy more stock.

Sorry but the fact she paid 2,000 baht for this book fills me with fear of her experiment in the stock market.

If this is the same book, either the book  has really increased in value from 311 baht or she's a bit gullible and paid 7 times the price for it (no offence intended)

https://www.phanpha.com/item/เทรดแบบเซียนหุ่น-ให้ได้กำไรขั้นเทพ-trade-stock-market-wizard

 

Edited March 20, 2021 by RichardColeman

[rumak]

8 hours ago, AlfHuy said:

Tell her to invest in low risk, dividend paying stocks and to re-invest the dividends and have a long term view. Compounding is the way to go. Becoming quickly rich is, what most dream about when buying into the promises of "15%  and up, interest a year.

I would be interested to see which stocks the guys replying on this forum would suggest fit the criteria above.  

Name 3 stocks  that would be your choice :  low risk......dividend paying 

really,  if not naming names than advice is not that helpful.   names  names !

Edited March 20, 2021 by rumak

[Oxx]

Personally, I don't think novice investors should be investing in individual stocks.  That's doubly so in the Thai stock market which is a nest of vipers, not transparent and decidedly corrupt.  And with Thai people, many are very easily swayed by what they read on social media, hence the DELTA situation last year and the current interest in ARK ETFs, and the enormous enthusiasm for PTT OR.

Better in my opinion for such investors to invest in mutual funds which provide (one hopes) expert stock selection and instant diversification.

[Thomas J]

I know nothing about the Thai stock market other than a friend of ours thought she was a "skilled" investor and lost millions.  There are only a few countries that rigidly require that companies with stock listed for the public undergo intensive scrutiny.  The U.S.A., U.K., France, Germany, and Japan are ones I know.  Even then fraud such as Enron, Bernie Madoff etc occurs.   I can't imagine the potential fraud in countries such as Thailand as such, I would avoid them entirely. 

If possible I would suggest she get an account and invest in a mutual fund.  Either the S&P 500 index fund or a world index fund.  It is extremely difficult over decades to beat the index because of the low cost to invest.  And I say this despite being in the business both as an executive with one of the largest banks in the USA handling corporate retirement plans and also being a licensed sales representative for both Merrill Lynch and UBS. 

Edited March 21, 2021 by Thomas J

[Oxx]

22 minutes ago, Thomas J said:

Either the S&P 500 index fund or a world index fund.  It is extremely difficult over decades to beat the index because of the low cost to invest. 

This is a lie perpetuated by Vanguard.  A lie perpetuated by misleading comparisons (e.g. comparing an index fund against the average of actively managed funds in a sector when it would be more honest to compare with the best funds).

It's not particularly difficult to identify funds that will regularly beat an index in most equity markets (the US being a bit of an exception).

[Jeffr2]

22 minutes ago, Oxx said:

This is a lie perpetuated by Vanguard.  A lie perpetuated by misleading comparisons (e.g. comparing an index fund against the average of actively managed funds in a sector when it would be more honest to compare with the best funds).

It's not particularly difficult to identify funds that will regularly beat an index in most equity markets (the US being a bit of an exception).

It's not a lie and not perpetuated by just Vanguard.  It's a fact.  Few managed funds/advisors do better than an index fund.

I've got an advisor and pay a very small percentage for it.  They do tax loss harvesting, focus on funds that generate cash when I need it, etc.

Here's the best advice ever given:

https://www.bogleheads.org/wiki/Three-fund_portfolio

An interesting note in this link:

Taylor Larimore was an early advocate of this approach, which he described in 1999 in a Morningstar posting, Which is better, 15 funds or 4? He stated that "It is no longer necessary to own large portfolios. Now, with only four funds, it is possible to own all the securities in every asset-class, style, and cap-size, in exact proportion to their market weight. These four funds are: Total Stock Market Fund, Total Bond Market Fund, Total International Fund and a Money-Market Fund."

[Oxx]

1 hour ago, Jeffr2 said:

Here's the best advice ever given:

https://www.bogleheads.org/wiki/Three-fund_portfolio

 

If you'd tried to prove my point you couldn't have come up with a better reference.

 

1 hour ago, Jeffr2 said:

It's not a lie and not perpetuated by just Vanguard.  It's a fact.

 

Bogleheads is run by worshippers of the founder of Vanguard.

(I presume you're aware of the name of the founder of Vanguard.)

 

[shy coconut]

On 3/20/2021 at 7:29 AM, AlfHuy said:

Tell her to invest in low risk, dividend paying stocks and to re-invest the dividends and have a long term view. Compounding is the way to go. Becoming quickly rich is, what most dream about when buying into the promises of "15%  and up, interest a year.

All very sound advice , I'm sure, but I believe the OP wanted information in Thai that his wife could easily understand. I don't understand the majority of answers here and English is my first language.

 

Any way, I thought all of the Thai visa billionaires were investing in crypto these days!!

Edited March 21, 2021 by shy coconut

[GarryP]

7 hours ago, Oxx said:

Personally, I don't think novice investors should be investing in individual stocks.  That's doubly so in the Thai stock market which is a nest of vipers, not transparent and decidedly corrupt.  And with Thai people, many are very easily swayed by what they read on social media, hence the DELTA situation last year and the current interest in ARK ETFs, and the enormous enthusiasm for PTT OR.

Better in my opinion for such investors to invest in mutual funds which provide (one hopes) expert stock selection and instant diversification.

That is the way I went. I do not have the time to be monitoring the markets to be doing daily trades, so went for mutual funds. I am doing okay and happy with the performance, after getting really hit in December last year. 

 

Get her to register with WealthMagik and download the app. She can then create test portfolios, or even buy funds (I have only bought directly with BBL, TMB-ES and UOB but may buy via the app in the future) . The App and website are both in Thai language and I have found it very informative on mutual funds available in Thailand, with performance rankings by sector, popularity, etc.    

Edited March 21, 2021 by GarryP

[moldresistant]

2 hours ago, Oxx said:

This is a lie perpetuated by Vanguard.  A lie perpetuated by misleading comparisons (e.g. comparing an index fund against the average of actively managed funds in a sector when it would be more honest to compare with the best funds).

It's not particularly difficult to identify funds that will regularly beat an index in most equity markets (the US being a bit of an exception).

In 2007, Warren Buffett made a bet against hedge-fund manager Ted Seides that a simple S&P 500 index fund would outperform a basket of at least five hedge funds over the course of a decade. The bet's time frame started in January 2008 and concluded at the end of 2017. It's now official -- Buffett is the winner, and by a large margin: https://www.fool.com/investing/2018/01/03/warren-buffett-just-officially-won-his-million-dol.aspx

[Jeffr2]

1 hour ago, Oxx said:

 

If you'd tried to prove my point you couldn't have come up with a better reference.

 

 

Bogleheads is run by worshippers of the founder of Vanguard.

(I presume you're aware of the name of the founder of Vanguard.)

 

Yes, I was trying to prove your point!  And yes, I know the origins of Bogleheads.  Still, from what I've researched, for amateur investors, a combo of index funds isn't a bad way to go.

[allanos]

A novice investor playing the stock market? The chances of success are slim and none, and slim is out of town!

 

Remember KISS - Keep It Simple, Stupid.

 

Let her put her money into an index fund. Costs are low and the basket of shares in it roughly follow the index. It's hard to beat any index, and the commission-earning, so-called experts have a tough time beating it.  So much so, that they rarely do!

 

DCA  in. (Dollar Cost Average, or Baht Cost Average into the fund), with regular amounts being invested into it month by month/ year by year.

She will even out the gyrations in the stock price. Time in the market can

be better than timing the market!

 

Let any dividends be reinvested.

 

Although the naysayers will laugh, she will be better off by far with putting some of her funds into crypto - Bitcoin, my personal favourite, or Ethereum.

Let her sit back and enjoy the ride!

[GrandPapillon]

8 hours ago, Oxx said:

Personally, I don't think novice investors should be investing in individual stocks.  That's doubly so in the Thai stock market which is a nest of vipers, not transparent and decidedly corrupt.  And with Thai people, many are very easily swayed by what they read on social media, hence the DELTA situation last year and the current interest in ARK ETFs, and the enormous enthusiasm for PTT OR.

Better in my opinion for such investors to invest in mutual funds which provide (one hopes) expert stock selection and instant diversification.

amen to that and good point,

 

she could buy Thai REITs invested in TESCO properties assets or the BTS leasehold assets, they payout 90% of their property income

 

novice investors should play with paper trade first, and learning to invest means to lose on a lot of investment before you can learn from your mistakes (some people never learn though)

 

ONE Asset Management has a lot of nice mutual funds, 1DIV I think pay a lot of dividends, so to check if you buy those at the right NAV or right price

[xtrnuno41]

Got a mate in Hong Kong, was also thinking of doing stock.

In no time lost a lot of money. Simple as he was not recording what was happening ANY time.

He is not really stupid, but too lazy for it. Rather having chats with girls then watching the stocks.

That costed him a lot and having troubles.

So you must be really fanatic to make money in stock, coins or whatever.

You also have , dont know Thai market, binary options, goes fast , but never the less tricky.

Same as playing roulette.

Well all is just playing roulette, you never can tell, you have to keep the world into your mind with what happens there.

 

If she doesnt have a house, she should buy a house for her self, no rent to pay anymore.

That would be already a good investment.

Dont know how she is making her money and how much, but it is a wise investment. 

 

[Oxx]

1 hour ago, moldresistant said:

In 2007, Warren Buffett made a bet against hedge-fund manager Ted Seides that a simple S&P 500 index fund would outperform a basket of at least five hedge funds over the course of a decade.

 

Yes, hedge funds - not normal equity funds.  Hedge funds that charge 2% per year, plus 20% of gains.  The dice are loaded against investors in hedge funds.  That was the point Buffett was making.

This was also in the US markets, which are very efficient.  Fund managers have far more of an edge in less efficient markets.

 

[scubascuba3]

You missed the boat like many, should have got in around March last year, Thai market up about 40% since then

[Seeall]

I am a trader 14 years....

 

main thing is not fall for the "expert courses"

if its so good why are they teaching... ah to give back to others... yeah right...

 

good luck on your journy..  changed my life... not easy.. think becaome a heart seargeon would be easier...

 

 

[NotYourBusiness]

Buy low, sell high.

[xylophone]

9 minutes ago, NotYourBusiness said:

Buy low, sell high.

No, really!

Edited March 21, 2021 by xylophone

[koolkarl]

Tell her to go all in and buy Gamestop.

[AlfHuy]

On 3/20/2021 at 10:45 PM, rumak said:

I would be interested to see which stocks the guys replying on this forum would suggest fit the criteria above.  

Name 3 stocks  that would be your choice :  low risk......dividend paying 

really,  if not naming names than advice is not that helpful.   names  names !

LGEN

RDSB (even having lowered their divi pay-out 2020, I bought in again and let them do their job).

And a few more in my portfolio.