Setting an investment target from 1 million to 1,025 million: Simple techniques from Sien Mi, by Ajarn Tiwa (Sien Mi).
(Content from the course "Techniques for Finding 10-Band Stocks Under a War Crisis" on September 3, 2022)
P'Manoon, it's incredible! He's actually one of the most knowledgeable people in the pharmaceutical industry. During COVID, I learned a lot from him. He does livestreams on CSI almost once a month about COVID, medicine, and vaccines. Now, we all know that Omicron isn't going to disappear from the world. It's a virus that disappears from our minds, but it hasn't. Previously, I thought it would disappear in another form, like the Spanish flu, which suddenly disappeared like this. But now it's clear that people infected with Wuhan won't get Delta, and people infected with Delta won't get the next strains. But Omicron keeps getting infected, and it keeps getting infected. So, we have to keep living with it.
Today, when I received the topic "Finding 10-Band Stocks Under a War Crisis," I've always heard the idea of 10-Band Stocks and was excited. Because I feel that when we buy and sell stocks, the simple way to think is, if we take a large sum of money, like 1 million or 10 million, and we invest it in small amounts, simply put, 10 million, and we profit 10,000 or 20,000 at a time, or 1 million profit 5,000 at a time, without having to think carefully, we know it's hard to get rich. Can you imagine? The way most people in the world make a lot of profit from the stock market is to take small money and invest it in big money. Can you imagine? If you take small money to find a business with potential and it can really grow in the long term, 2-3 stocks are enough. In this life, just 2-3 stocks are enough. You hardly need to analyze macro factors. Let's say 20 years ago, I was one of the people who experienced a 100-bounce stock price. 10 bounces is too little. Someone invited me to have coffee at Starbucks 20 years ago. They opened their first branch near a shopping mall. After we finished eating, they said this and that about Starbucks. I went to read the information. I thought it was interesting. At that time, we were investors. We probably didn't think about whether it was delicious or popular. Back then, we looked behind the scenes to see what it was like. The payback rate when we did business. The only number I was interested in was the payback rate. How long? Back then, Starbucks in America had a payback period of about 1.5 to 2 years. I was very excited. Their ROD was almost 70%, and their ROA was already 70%. That's a lot. Then, the next news was that they were expanding internationally. At that time, Thailand was already in the middle. After leaving America, they had a payback period of 100%, a 100% ROA. It was amazing. How far could they go? Imagine Thailand, maybe with 30 Starbucks.
My investment target is simple: 64 columns. Each column doubles by 1.26. I multiply 1.26 three times. If I had a 30-year investment plan, 1 x 1.26 to the power of 30 would be 1025 million baht. I put in 10 million baht in principal. I calculated that if I couldn't make it, I set a target of 100 baht. I assumed 10% would yield 100 million baht. But if I couldn't make it, I'd set a target of 100 baht. I'd set a target of 10%, and that would yield 100 million baht. But if I couldn't make it again, Very incompetent. Even if I get 1% of the target, I can still make 10 million. Any number is definitely better than 1 million to start with. So I played this game. I will play the game. I am interested in the starting rate. I will not play the game that is flashy and short-term. If the market goes up, everyone buys stocks. When the market goes down, it will measure what can really last. If the market goes up 10% and you make 15%, this accelerator is meaningless. If the market goes down 10% and you lose 20%, you will stay in the same place for another 20 years. The real key is to go up, go up slowly or go up quickly. Who goes up 200% is their business. I look at my 26%. I lose a little each time. Do whatever it takes to keep this framework. Compound slowly. Valen has given an example for you to see. But humans are complex in yeast. Actually, when I was born, Valen started to become famous. Valen started taking the company public in 1975 or 1976. He was already famous. Believe it or not, no one has copied him. Every time he buys or sells stocks, he has to report to the market. I have one research paper I sent to the people attending this meeting, two of whom are Ph.D.s. If Valen's method works, suppose after the day of the sale, we don't buy. We buy on the 1st of the following month and take the highest price that day, showing off our wealth. We take the highest price that day.
Then we sell on the 1st of the following month after Valen sells. We do this like this, selling at the lowest price that day. Believe it or not, if we keep doing this for another 30 years, copying Valen, we'll get a reward. We beat the S&...