Views on Invest Idol Winner - Nicholas Lim

As some of you had known (stated in my previous post), I had participated in the invest idol, went on to the preliminary round and then lost.

Strait Times has announced the winner for Invest Idol this morning. For those who had missed it, here is the report.

It has revealed that the winner only had 2 stocks in his portfolio - Lum Chang and Falcon Energy Group.

One of my friend, who practiced value-investing, was quite frustrated with the result - especially when one of the judge is Lynn Gasper, who sits on SGX as head of retail. It seems to be reflecting wrongly on the views that investors/trades should take more risks.

Then in my view, I explained my pointers rationally:

1. I felt that Nicholas's portfolio in the invest idol competition should not be reflective of his personal portfolio. This portfolio is made for the competition. He played the game differently and impressed the judges. Thus, he stood out and won. Imagine you as the judge and had to hear countless contestants talk about similar companies, how boring is it?

2. His reason for Falcon Energy Group is something I missed out. Its an interesting perspective. However, I still dislike that they are holding on so much debt, especially in this environment. Thus, I am staying focus (Haha...kenichi as you always tell me to stay focus).

3. Nicholas is a full time trader. We are all part time investor, full time worker. He definitely has to take more risk to earn back "what he missed out as fixed income". For him, trading is his fixed income. Investment is our passive income.

4. Anyone who copied Nicholas' portfolio will only received short term benefits if they do not have the holding power/analytic skills like Nicholas. Worst off, they may end up losing a lot more.

5. There must be a balance in the Singapore Market to keep it going. For every trader, there is an investor. For every high risk taker, there is one like me who prefer capital preservation.

Anyway, I am looking forward to invest idol 2 and will still participate again. I find it a good learning experience.