My purpose of writing this piece is for Remisiers to improve their efficiency and provide better service to their clients.
Last night while watching the Wimbledon men single tennis final, I was shocked to see a WhatsApp message from someone I did not know, to tell me that she bought Toyo Ink because she saw my name on the 30 largest shareholders list of Toyo Ink 2018 report. Even without checking out the details, I immediately replied that I should have sold them long ago if I knew I still have shares of Toyo Ink.
Fortunately, this morning I found out that I sold them long ago because it has no profit growth prospect and it did no comply with my golden rule for share selection.
My golden rule for share selection is that the company must report 2 consecutive quarters of increasing profit and it must be selling at P/E less than 10.
I have margin accounts with almost all the financial investment banks. Moreover, I have to manage another 3 margin accounts for my wife and close friends. So, it is easier for me to give instructions to my Remisiers to buy or sell any of our holdings even though I could save some money if I key in the figures by myself.
To be a good Remisier, he must know the following:
1 Basic fundamental analysis so that he can give advice to buy or sell.
2 Basic knowledge of price chart, to point out if the client’s stock has changed trend.
3 Frequent checking of the client’s remaining stocks in hand because the quality of some stock might have changed. For example, Toyo Ink. Fortunately, my remisier told me that I sold them long ago.
4 Remisiers must remember that they are not just typists. They must use their initiative to act independently after having received instruction from the client. He must know something about human behaviour. For example, if there are a lot of buyers, he must know how to wait to sell at higher prices. If there are a lot of sellers, he should wait patiently. The daily price difference of a stock can be a few sen. He can always buy shares at cheaper prices or sell at higher prices if he know investors’ behaviour.
5 Remisiers must know that investors always over-react on any good or bad news. Whenever any company announces some good news, investors would rush to buy the shares as if the price will continue to go higher and higher. In the case of any bad news, investors would rush to sell aggressively. As a result, the price would drop too rapidly.
6 Remisiers must know that no stock can go up or drop continuously for whatever reason. After some time, it will change its trend. The best time to buy or sell is when it starts to change its trend.