Investing Is So Simple

12 April 2019

“Imagine if there were a market crash happening right now. The financial media would predictably respond with panicked headlines. Our screens would be full of distraught newscasters trumpeting doom and destruction. Surrounded by all this information (through television, email, newspapers and social media), it is only natural that investors would pick up on that fear and react to escape the threat. Most will then end up stressing out over the losses they sustain, before moving on to stress out over the gains they miss when the market eventually recovers.

But imagine how differently people might behave if the news instead treated market crashes as an exciting cause for celebration: “Good news! Stock prices at record lows! Get them before it’s too late!”

The crash itself would not have changed, but instead of the start of protracted financial despair, investors everywhere would be rushing around to grab as many stocks as they can with the giddy, demented joy of shoppers at a Black Friday sale.”

Excerpt from Simply Invest, Chapter 16

Have you ever wondered why so many investors keep losing money? It happens commonly enough that we might think of investing as something best left for the competent, financially-trained adults among us who are skilled and brave enough to enter those waters.

But investing is actually quite simple – and safe! – once you tear away all the extra stuff that’s only there to confuse you.

Sure, the word ‘simple’ isn’t exactly a word that most of us would associate with investing. Yet as we rush around trying to declutter and streamline our lives – whether this means paring down all our belongings to the barest essentials, or figuring out which nail clipper sparks the most joy – perhaps it’s worth turning that same critical eye to the convoluted, messy, expensive, heart-wrenching process that most of us assume is an inherent part of investing.

The good news is that it is not. There is a better, simpler way to invest.

This is the central premise of Simply Invest: the long-anticipated first book by our CEO, Goh Yang Chye. The book explains the scientific and mathematical reasons why conventional investing methods almost always fail, and how investors can instead use this same evidence to create the highest probability of investment success. The book delves into the specific factors that drive investment returns, how to guard against the human instincts that lead us to bad investment decisions, how best to react in different market scenarios, whether or not you should consider alternative investments like cryptocurrency and property, how to decide whether or not you need a financial adviser, and how to protect yourself from being cheated if you do decide to look for one.

We believe that the best investment advice should be accessible to everyone, regardless of financial education or socioeconomic status. The first step to enabling that accessibility is education, and to keep the process as simple as possible. Far too much money has been lost and lives ruined chasing tantalising investment ideas that went nowhere.

Simply Invest aims to show you that none of that was ever needed in the first place. Invest simply so that you may simply invest – invest, and nothing more. No stock-picking, no forecasting, no choosing between a confusing array of products, no sleepless nights tracking a turbulent market and stressing over whether or not to sell or wait. You can just live your life, and eventually reap the returns.

Book Launch! – 27 April 2019

If this is something you would like to know more about, or if you know someone who might be interested, we invite you to come by our official book launch on the 27th of April from 2-3pm at Kinokuniya (Takashimaya). You’ll get the chance to hear from the author, have questions answered, and get your copy of the book signed!

Just drop us a note if you can make it. We look forward to welcoming you there!

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GYC Perspectives

Markets are often irrational. Even among experts, forecasting does not consistently work. We instead believe in Evidence-Based Investing (EBI), which uses decades of empirical data and the greatest ideas in financial science to optimise investment outcomes. No market predictions, no forecasts, no emotions. All those things rely on gut-feel and intuition that cannot be consistently replicated.

Here, we share with you the evidence on why EBI works and why forecasting doesn't, as well as articles on topics such as behavioural finance to help you become better investors. New here? You can start with this introduction to EBI. Happy reading!

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