27 Surprising And Important Things About Investing Every Investor Should Know

Back in September 2016, I had shared 26 surprising and important things about the investing world that I think every investor should be aware of.

These things come from my 10-plus years of being a student of investing. I had recently discovered something fascinating about oil & gas stocks that I think warrant an entry here. So, let’s get going with the 27th entry in my ever-growing list of surprising and important things about investing:

27. In a 10-month period when oil prices doubled, oil & gas stocks in Singapore saw their prices decline on average.

The lowest price WTI Crude Oil reached in 2016 was US$26.61 per barrel and that was reached on 11 February. Slightly over 10 months later on 21 December 2016, WTI Crude Oil had doubled to a price of US$53.53.

But over the same period, a collection of 50 Singapore-listed oil & gas companies had seen their stock prices decline by 11.9% on average. And within that group of 50, 34 of them actually had saw their stock prices fall in the timeframe we’re observing.

The aforementioned 50 names may not be a complete list of all the oil & gas-related companies listed in Singapore. But, I think they are a representative group, considering that:

  1. there were only 54 oil & gas companies listed in Singapore back in November 2014; and
  2. the list of 50 includes some of the biggest players, such as Keppel Corporation Limited (SGX: BN4) and Sembcorp Marine Ltd (SGX: S51), as well as the smaller entities, such as KS Energy Limited (SGX: 578).

Such a massive discrepancy between the movement in the price of oil and the change in the stock prices of the Singapore-listed oil & gas companies highlights a critically important idea in investing: An economic trend (changes in oil prices in this instance) and the performance of a stock can be miles apart.

Note: In the original version of this article, I incorrectly implied that I had previously only written articles describing 25 surprising and important things about the stock market. I have corrected the error.

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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 writer Chong Ser Jing doesn't own shares in any companies mentioned.