Lecture on Stock Market Investments and Strategy

Introduction

• Review of the previous year's achievements and performance in the stock market.
• Discussion of strategies and expectations for future investments, focusing on 2025.

Performance Summary

• Alphabet (Google) Shares:

  • Held 12,400 shares with current valuation at $3.256 million.
  • Realized a profit of $1.3 million from a cost of $1.976 million three years ago.
  • Profitability driven by a 64.7% profit margin.

• Amazon Shares:

  • Held 3,350 shares, with an unrealized profit of 35.55%.
  • Original cost was $764,000, with a current profit of approximately $271,000.

Investment Strategy

• Post-retirement strategy involved shifting investments from Singapore stocks to a global portfolio.
• Focus on the US stock market, which has seen significant growth and offers higher returns.
• The US market's contribution to global indices has increased to 55% in profits and 67% in market value.

Market Analysis

• The S&P 500 showed a growth of 24% in 2023 and 23% the following year.
• The US market's price-to-earnings ratio has increased but remains below pandemic highs.
• The growth is supported by strong earnings per share from US companies.

Future Investment Opportunities

• Upcoming class on February 8 will cover promising US stocks and sectors for high returns.
• Emphasis on avoiding investment in the Singapore Exchange (SGX) due to stagnant performance.
• Recommended focus on US tech stocks and cybersecurity sectors.

Key Insights

• Follow the money: invest in markets and sectors showing substantial growth and profitability.
• US tech giants like Alphabet, Amazon, Apple, Nvidia, and AMD are prime investment choices.
• Cybersecurity stocks, particularly Crowdstrike, offer high returns despite volatility.

Conclusion

• Continuous portfolio reassessment is essential to ensure high returns.
• Importance of knowing where not to invest, highlighted by underperformance of SGX.
• Encouragement to join the February 8 class for detailed insights on stock market trends.

Physical Fitness Analogy

• Importance of balance and strength, both in personal health (e.g., chin-ups) and financial investments.