7 Lessons Learnt From Investments

In this report, we identified and evaluated the shortcomings of our investment decision process and what we could have done to improve our investment decision during the revision of our portfolio. This is so that we can better meet our investment objective of maximising returns and minimising risks.
Upon reflection, we came up with seven lessons that we have learnt from this assignment on investment. This includes the observation of the Efficient Securities Market Theory and momentum trading in Lesson 1 and 2 respectively. We are glad to be able to apply what we have learnt in real life, as it made our learning experience more relevant to the real market conditions.
Furthermore, there were lessons learnt through the process of arriving at the investment decisions. We have come to realize that fundamental analysis adds value to our investment decision-making process, as it provides a more forward-looking picture than technical analysis (Lesson 3). However, it is insufficient to rely on fundamental analysis alone. We need to conduct sensitivity analysis as well so that we can consider the intrinsic values of the company under different circumstances (Lesson 4). This is because the market is dynamic and uncertain.
In addition, we have learnt that corporate governance will affect the performance of a firm (Lesson 5). Furthermore, the composition of the company’s shareholdings will affect its trading volume, which will in turn affect our investment returns (Lesson 6). Moreover, we have discovered that stock prices are not exempted from the influences of macroeconomic factors (Lesson 7).

The investment strategy of our group is to maximise returns from our investment portfolio, which consists of Advanced Holdings Limited (Advanced) and A ...
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