Roongkiat Ratanabanchuen – Risking It All on a Falling Stock
My Worst Investment Ever Podcast
Reflections on Over-Concentration and Investment Discipline
This chapter delves into an investor's journey of gradually increasing their investment in one company, highlighting the necessity of diversification, discipline in risk management, and the unpredictability of investment requirements.
Roongkiat Ratanabanchuen is a Thai banking professional who has an impressive portfolio in the areas of a pension fund, mutual fund, and microfinance. He is currently a full-time lecturer in Finance at Chulalongkorn University in Thailand. He also worked as a Risk Management Officer at Bank of Thailand. He graduated with a Bachelor’s degree in Automotive Engineering at Chulalongkorn University and earned a Master’s in Quantitative Finance at Cass Business school in London. He finished his Doctorate in Pension Fund Management at the London School of Economics and Political Science. He was awarded the 2017 CFA Institute Best Paper Award in Micro Structure which is a research scholarship in microfinance from the National Research Council of Thailand. Recently, he won another research scholarship in the area of risk management of saving cooperatives from the Thailand Research Fund.
In today’s episode, Dr. Roongkiat shares some of the investment mistakes he did when he risked it all on a falling stock. The time he spent managing that falling portfolio, caused him to miss other investment opportunities and for a time affected his confidence.
Listen from his story and learn what you need to do to avoid the same mistakes he did.
“Learn to diversify and put that into action.”
- Roongkiat Ratanabanchuen
What do you want to hear from the My Worst Investment Ever Podcast?
Resources:
Topics Covered:
00:54 – Andrew introduces Dr. Roongkiat’s educational background and his research scholarships
02:23 – Sharing his worst investment ever and the story behind it
03:12 – Dr. Roongkiat tells the reason why he retained his investment and other problems encountered by the company
06:29 – How time lost and faith in the company brought him further problems
08:14 – Lessons learned from both Dr. Roongkiat’s and Andrew’s investments
13:25 – Citing his recommendation to avoid suffering the same fate
Main Takeaways:
Lesson 1: “When you invest in a company, you need a lot more experience because this is quite difficult for us when the company can build around.”– Roongkiat Ratanabanchuen
Lesson 2: “When you invest, you need to have some discipline that you need to limit your concentration of risk in a certain company.”- Roongkiat Ratanabanchuen
Lesson 3: “Don't put too much money on one stock, because if something happens, then you may decide and then you may end up in a situation when you don't know what to do next. You know I do because I don't allow flexibility on my portfolio.”-Roongkiat Ratanabanchuen
Lesson 4: “I basically came to the conclusion that 10 is the number of stocks that the average individual investor should hold in Asia.”– Andrew Stotz
Lesson 5: “My next recommendation is they should hold them in equal weighting.”– Andrew Stotz
Lesson 6: “Each investment that you have could require more money”– Andrew Stotz
Lesson 7: “Remember when you're investing something that you must be prepared that at least some of your investments will consume more money than you thought and you'll have to put more in.”– Andrew Stotz
Lesson 8: “You will not end up in this situation if you have a diversified portfolio and then it will be easier for you just to let it go and then begin it.”– Roongkiat Ratanabanchuen
You can also check out Andrew’s books
- How to Start Building Your Wealth Investing in the Stock Market
- My Worst Investment Ever
- 9 Valuation Mistakes and How to Avoid Them
- Transform Your Business with Dr.Deming’s 14 Points
Connect with Roongkiat Ratanabanchuen:
Connect with Andrew Stotz:
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