2 Useful Investment Quotes for 2016

Does it feel like stormy weather in the investing seas will appear for 2016?

It could be, if we looked at what happened to the Straits Times Index (SGX: ^STI) in 2015 – it fell by 14.5%.

Oil companies like Keppel Corporation Limited (SGX: BN4) and SembCorp Marine Ltd (SGX: S51) did worse – falling oil prices had led to lower profits in the two companies, in turn resulting in bigger share price declines for them than the Straits Times Index had experienced during the year.

And then, we had the U.S. Federal Reserve’s interest rate hike in mid-December, the first time the central bank had done so in nearly a decade.

In short, dark clouds appear to be gathering. To help deal with that, here are some smart quotes about life in general that are very applicable to investing as well.

1. Quote from John A. Shedd: “A ship in harbor is safe, but that is not what ships are made for” click here for more 

2. Quote from Boris Spassky: “ I still look at chess with the eyes of a child

Boris Spassky was the World Chess Champion from 1969 to 1972. This makes his quote above surprising, given his depth and breadth of knowledge in chess. But, we might want to take a cue from Spassky here when it comes to how we view stocks,  especially stocks that we own. 

In investing, we should always be willing to look at our own stocks with fresh eyes. Like a child, we may want to look at the companies as though we have seen them only for the first time. This guards us against any anchoring bias and helps us judge a company for its true merits and flaws.  

Writing a bear thesis for your own company may help in this endeavour. Here are a few examples of bear theses for blue chip stocks in Singapore’s stock market:

  1. ComfortDelgro Corporation Limited (SGX: C52) – click here
  2. Singapore Airlines Ltd (SGX: C6L) – click here
  3. Genting Singapore PLC (SGX: G13) – click here

Foolish takeaway

To be sure, dealing with uncertainties in the stock market doesn’t mean that we have to make a big splash. My U.S. colleague Morgan Housel once shared Napoleon Bonaparte’s words in a tweet:

Like Napolean, what we may want to do is quite simple and that is, to just keep on investing.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.