My Worst Investment Ever Podcast Kittisak Kovintavewat – Be an Investor, Not a Speculator
BIO: Kittisak Kovintavewat is a value investor who focuses on investing in value stocks in the US and China.
STORY: Kittisak bought the Thai Airways stock as it grew steadily, but a few external and internal problems made the stock price drop. Even though Kittisak had studied the company extensively and knew the stock was strong, he panicked and sold his shares. The problems were later resolved, and the stock went up to three times more than what Kittisak had sold it for.
LEARNING: Don’t focus too much on the price; instead, focus on the company’s stability. Find your investment style.
“Invest often so that you can find your investment style. Once you find your style, you will gain more success.”
Kittisak Kovintavewat
Guest profile
Kittisak Kovintavewat is a value investor who focuses on investing in value stocks in the US and China. He has been investing in the US for more than seven years and runs the Billionaire VI page to help investors invest following the value investment style.
Worst investment ever
In 2014, Kittisak took an interest in Thai Airways. He studied the company for a while and realized that the company would make a huge profit every time oil prices would fall. Kittisak continued his research, convinced that it was a good company to invest in.
At the time, Thai Airways’ shares were selling at 15 Baht per share. The price kept rising after Kittisak made his investment. But after a while, problems started arising in the Thai economy. The company was also experiencing internal issues, and this saw the share price begin to fall. The price went all the way down to 9 Baht per share. At this point, Kittisak feared that he would lose his entire investment, so he made the rash decision to sell his shares at 9 Baht per share.
Soon after Kittisak sold his shares, the government came to Thai Airways’ rescue, and things started turning for the company. Within a few months, the share price went up to 30 Baht. Kittisak was devastated for not giving the company a chance to turn around.
Lessons learned
- Don’t speculate in the stock but invest in the company. If you focus on the stock, you only concentrate on the short-term price, but when you focus on the company, you focus on the long-term value.
- Never invest in a turnaround company; instead, invest in stable companies with the potential for long-term gain.
- Investment is about time, so always think long-term.
Andrew’s takeaways
- You can’t capture every factor that affects a share price; there will be surprise factors.
- Find your investment style.
Actionable advice
Understand the difference between speculators and investors. Speculators are interested in the price and make profits when the prices go up. They buy and sell in the short term. They don’t want to study or know about the company. An investor takes time to learn about the company and understands the fundamentals of the company. They consider themselves the owner of the company. The investor succeeds more than the speculator.
No. 1 goal for the next 12 months
Kittisak’s number one goal for the next 12 months is developing and growing his portfolio by 20%. He also wants to continue sharing more investment information via his Billionaire VI page.
Parting words
“The most important thing now is to stay safe because if you get COVID, you cannot invest or make money.”
Kittisak Kovintavewat
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Connect with Kittisak Kovintavewat
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
Andrew’s online programs
- Valuation Master Class
- How to Start Building Your Wealth Investing in the Stock Market
- Finance Made Ridiculously Simple
- Become a Great Presenter and Increase Your Influence
- Transform Your Business with Dr. Deming’s 14 Points