Story Sharing - No One Cares More Then Yourself

I have a friend name Esther that work as a piano teacher. One day she told me she invest a large sum of money in mutual fund for quite some time.

I ask her, why do you put so much money in the mutual fund ?

she reply me that the mutual fund agent told him that there fund will surely profit and show him some so call facts how good there fund have perform.

1 year pass by and i ask her hows the fund is performing ? 

She replied to me with a angry voice that the fund manager cheated her hard earned savings. The fund keep on dropping and i lost alot of money when i told the agent i wanted to sell he told me your funds now can only return you this xxx amount. when i ask him why only so little left ? the agent scold me and say of coz what do you think we bank doesn't need to charge fee ? 

So in the end Esther was very upset because the agent did not told him about those hidden fee.

Moral of the story: The world out there is full of so call money making scheme or program that's why as a smart investor we need to be careful to not let other people take care of our money. The problem does not lies with other people but ourself. Esther did not do his research before jumping in a invesment and blame the agent cheated on her.

Thats why my father always tell me why be lazy and let other people invest your money when you can do it your own. In this world there is no free lunch son...

Story Sharing - Chimpanzee Vs Fund Manager

There was a test conducted in the United States where they asked a blindfolded chimpanzee to pick some stocks by thorwing darts at the Wall Street Journal (newspaper). 

The performance of these stock later compared with that of some reputable fund managers.

The result?

Some of the fund managers couldn't even beat the chimp!

Moral of the story: This test was conducted in the United States to prove the theory of random walk, which is associated with efficient market hypotesis. The logic behind this is that any stock price is truly reflective of the information avaible in the market. Tomorrow's price change will be reflected by tomorrow's news and will be independent of the prices changes today. Hence, price changes are unpredictable and random.

However, as you gain more knowledge, you'll realize that our stock market is not fully efficient yet, Hard work does pay off well in the stock market.