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The Art of Gaslighting

I am no “expert” because I lack the intelligence to gaslight people with all sorts of excuses & jargons and most importantly I am not Foolish enough to be an “Expert”.

I am not a fund manager who invest other people’s money for a living but I invest my own family’s money.

If I lose money in the investment, I take full responsibility and suffer the loss fully. No if or but.

As “retail investor”, I don’t have huge amount of resources and team of researchers and “experts” to seek advice from. I am just me.

I can make partial paper losses, which I always do but ever since 1997 Crisis which I suffered my greatest losses, I have never face a situation which ended up with a total collapse of the company which I have invested!

SWF is not a Hedge Fund. They are expected to bring returns from their investment and at the same time, preserve the value of our Country’s wealth.

Stocks and shares will go up and down with the economic cycles. Temporary paper capital loss is acceptable if and only if the companies don’t go bankrupt or suffered irrevocable damage to its fundamentals which render it crippled and unable to recover in the long run.

SWF should not take excessive risks, definitely not risks which could result in total write off of its investment.

SWF is supposed to invest for long term gains and investing in companies which could collapse overnight and go bankrupt is just anything but long term! The companies you invest must stay long term and not bankrupt if you want long term gains!

Seasoned Retail investors like us know our weaknesses as compared to institutional investors. We don’t have “insider information” or indepth knowledge of the companies and we depend on third or even forth tier information.

We do not speculate and we know what kinds of returns we could expect with the risk we are willing to take.

Institutional investors have advantages but the sheer size of their investment can become their disadvantage. It’s not easy for them to dump their shares in a quick way like us. Thus, they have to be extra careful before they decide to invest in any company with huge amount of money.

Thus, the judgement of characters of the leaders & management of the companies is very important for SWF, not just reading the P&L and accounts.

If a SWF which is supposed to invest for the long term but ended up choosing companies which collapse with a short life, that’s pure incompetency. No if or but here. Period.

Apparently TH has a serious problem here. It had lost quite a considerable amount of money back in 2008/09 in the rush for “bargain hunting” but ended up with huge losses from the high risk lemons they have invested in. They didn’t learn their lesson at all.

They continued to take unnecessary high risks, forgetting their fundamental role as SWF is to protect the country’s wealth and generate decent return without taking excessive high risks.

For me as a retail investor at my age, I am investing more like a SWF for my retirement. I don’t take excessive high risk inspite of the attraction of high capital gains from volatile tech stocks.

I don’t invest in companies that don’t issue dividends, even if it’s run by Warren Buffett. Especially for tech stocks which only sell you the dream but never generate any dividend for your shares.

At my age, I can’t afford to be like TH, just write off millions and take it lightly as it’s only 0.05% of its total portfolio!

It’s a typical example of moral hazard when it comes to fund management.

If the fund rewards its fund managers with hefty bonuses when they make great money, of course they are willing to take greater risks for greater returns! Lose money, it’s not their money. They don’t suffer any monetary loss Great gain, they can milk for high bonuses!

For any case of investment which resulted in Total Write Off, the fund manager responsible for evaluating and deciding on such investment should be fired or penalized.

At the very least, there must be accountability in SWF management.

Well maybe we are not “talent” or “expert” who would enjoy indemnity from accountability.

 

Goh Meng Seng

 

 

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READER COMMENTS BELOW

9 Responses to “The Art of Gaslighting”

  • xoxo:

    Oh,simple folks at TRE have been warning about CRAPto$ but who would listen for we are LESSER MORTALS and mere Sheep who are told to produce cotton.
    We are only fit for $600 when NON-sgs workibg here were gifted with tens of thousands or more from our sgs’ reserves ?

    Never mind if these FTs keep losing our money buying BEAT-coins.
    Whats $275 Million?
    Lose change.
    Anyway,we could even lost $50 Billion and that was nothing .
    If you cowpeh at our loss,we will collect more money from you.
    GST,COE,LEVIES JUST TO NAME A FEW.

    LOSING MONEY MEANS NOTHING TO US.
    WE ARE SO IMMUNED TO IT.
    WE DONT NEED TO DISCLOSE TP YOU.
    WHY SHUD WE ACCOUNT TO MERE PEASANTS?
    *WE TAKE UMBRAGE*!

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  • Insightful:

    Insightful.
    Need more accountability .More so if you are using others money.
    A stupid decision is a stupid decision even if the amount is small.

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  • knn:

    $275m is small? Just because got a lot more money to lose?

    How many people got $100k in their savings?

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  • 2Daft2Live:

    Don’t worry…..with the increase in GST, utility rate, COE and new sources of taxation from online purchases, Temasek will declare historical profits next quarter. More than enough to offset tiny losses. Remember Temasek invest for the long run.

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  • Stock market a casino:

    We know Hyflux case, money in stock lost forever. The transparency in businesses is low. Many companies are painted with good prospect but they gave you all the dirty stuff when they make losses. Technology companies stock in US and China, have good prices with good prospect but are they worth their stock prices. Recently, we see their price drops. So who report their good prospect and strong balance sheet or accounting? It is these grading companies or so called experts. How dark is the world with money.

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  • bgkl:

    “In wake of FTX collapse, Lawrence Wong says Singapore ‘not open to crypto speculation at all’.” says the news article headline. My toes are laughing!

    Look who has to write down US$275 million in speculative crypto investment!

    Apparently even institutional investors fail to heed one advice which I believe is attributed to Warren Buffett when he says, “Look at the management behind the business (even if the business looks attractive).”

    In other words, I put it bluntly in 2 Chinese words, “看人!”

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  • MarBowling:

    ALL of you who kpkb about the sup sup the water loss of US$275 millions by Tombmasek Holdings(previously under the ARMPIT but NOW under the THUMB of Holee Jinx), please be REMINDED the Holee comments passed by Lee Kayu on his so-called TALENTED DIL: YOU WIN SOME, YOU ALSO LOSS SOME, LET’$ MOVE ON!

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  • Trust only myself:

    Unthinking Singaporeans don’t require accountability………..not their money, the liars can continue to enjoy their millions and billions……..

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  • I fail ownself check ownself:

    Of course! That’s why for these global Pappy crony-capitalists it is “not meaningful to disclose” to homegrown sheeples the humongous “building costs of government built public flats” Wait until L.O. instruct them to open up on the top-of-the-world citizens Medisave contributions to pay for our own medical expenses in the Ministry of Health Corporation! Some blur blops still unaware Pinky & Pork Belly Inc. have turned out public health care system into profit seeking organisation (to remain sustainable so as to provide subsidies to the people hahahaha)

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