Many new investors usually begin their investment journey by buying a stock that their friends or family introduced them to. It can be a household name or a company that feels “safe”, but not necessarily a company that you know well. But the single most costly mistake that Singapore investors make is exactly this: buying shares of a company without truly understanding its business.  On the surface, it seems harmless. After all, big-chip names like DBS Group Holdings (SGX: D05) and Keppel Ltd (SGX: BN4) are ...

Group 1 - 22V Research suggests it may be an opportune time to invest in consumer-discretionary stocks despite mixed performance during Black Friday [1][2] - The SPDR S&P Retail ETF closed approximately 0.1% lower, but the retail sector is expected to benefit from improved business fundamentals and macroeconomic conditions [2] - Labor market risks, tariffs, and challenges for lower-end consumers have been significant concerns, but these headwinds are reportedly diminishing [2]

Core Insights - Several Singapore household names have surpassed their 52-week highs, indicating renewed investor confidence and potential for sustained momentum [1][2] DBS Group Holdings Ltd (SGX: D05) - DBS Group Holdings is Singapore's largest bank, with shares reaching a peak of S$54.80 on October 7, 2025, driven by robust earnings of S$6.825 billion before tax for 1H2025, a 3% increase from 1H2024 [3][4] - The bank maintains healthy net interest margins (NIMs) at 2.08% and offers a trailing dividend yield of 5%, although it is sensitive to interest rate fluctuations [4][5] - The bank's digital transformation initiatives have bolstered growth and efficiency, making it a solid long-term investment despite potential earnings decline when rates ease [5][16] SBS Transit Ltd (SGX: S61) - SBS Transit, Singapore's leading public transport operator, reached a 52-week high of S$3.40 per share in September 2025, benefiting from improved ridership returning to pre-COVID levels [6][10] - The company reported a profit after tax of S$31.1 million for 1H2025, a 7.7% decline from the previous year, while declaring an interim dividend of S$0.0895 per share, a 60% increase from the prior year [7][8] - SBS Transit faces regulatory constraints and renewal risks with government contracts, which may cap its growth potential [9][10] Sheng Siong Group Ltd (SGX: OV8) - Sheng Siong, one of Singapore's largest supermarket chains, reached an all-time high of S$2.23 in July 2025, with a profit after tax of S$72.3 million for 1H2025, a 3.4% year-on-year increase [11][12] - The company has opened 11 new stores, expanding its total to 82, and plans to establish a new warehouse and distribution center [12][13] - Sheng Siong offers consistent growth and reliable dividend income, although it faces challenges in sustaining growth as its store network matures [14][15] General Market Insights - Stocks hitting new highs often reflect strong fundamentals rather than mere overvaluation, with DBS Group Holdings exemplifying a solid business model [16] - SBS Transit provides defensive stability as an essential service provider, while Sheng Siong remains a reliable consumer staple with growth potential [17]

Value Traps Identification - Value traps are stocks that appear cheap based on metrics like the PE ratio but are cheap for a reason [1][3] - Investor emotions, such as negative market sentiment or overreaction to missed earnings, can temporarily undervalue a good business [2] - A stock may appear inexpensive due to declining business fundamentals or a lack of industry growth [4] Due Diligence - To avoid value traps, it's crucial to investigate a business's fundamentals beyond valuation metrics [4][5] - Key components to examine include financial strength, profitability, growth prospects, and industry dynamics [5] - Red flags in these areas may justify a low valuation [5] Tools and Resources - Guru Focus's warning signs tool can help quickly identify potential value traps [6]

Investment & Opportunity Cost - The tweet suggests a potential opportunity cost in spending time on traditional financial analysis (projecting cash flows, learning business fundamentals) compared to investing in a "piece of rock" (potentially referring to a simpler, perhaps alternative, investment) [1] - The tweet implies that simpler investments might yield similar or better returns than complex financial analysis, questioning the value of extensive financial modeling [1]

Core Viewpoint - The article discusses common mistakes investors make during market highs and emphasizes the importance of focusing on business fundamentals, maintaining a diversified portfolio, and adhering to a disciplined investment strategy to avoid costly errors. Group 1: Mistake 1 - Chasing Momentum - Investors often rush to buy stocks that are experiencing rapid price increases, driven by speculative trading rather than solid fundamentals, which can lead to significant losses when momentum reverses [2][3] - An example is Seatrium Ltd, which reached a 52-week high of S$2.60 in February 2025 but fell to a low of S$1.62 by April 2025, illustrating the risks of buying at peak prices [3][4] Group 2: Mistake 2 - Overconcentrating on "Winners" - Concentrating too much investment in a single stock or sector can be risky, as even strong performers can decline sharply, leading to panic selling [5][6] - DBS Group Holdings Ltd saw its share price drop to a 52-week low of S$36.30 on April 7, 2025, a decline of over S$10 from the previous week, highlighting the dangers of overexposure [6][7] Group 3: Mistake 3 - Ignoring Valuations - Investors may overpay for quality companies during high enthusiasm, leading to disappointing returns if the companies cannot sustain their growth [8][9] - It is crucial to balance quality with price by analyzing metrics like price-to-earnings (P/E) and price-to-book (P/B) ratios to ensure reasonable valuations [9] Group 4: Mistake 4 - Forgetting Income & Cash Flow - Dividend-paying stocks provide steady cash flow and can help smooth returns during volatile markets, making them an essential part of a portfolio [10][11] - Sheng Siong Group Ltd is highlighted as a resilient dividend stock, with an interim dividend payout of S$0.032 per share for the first half of 2025, unchanged from the previous year [11] Group 5: Mistake 5 - Trying to Time the Market - Attempting to time the market for perfect entry or exit points is nearly impossible and can lead to missed gains [12][14] - A recommended strategy is Dollar-Cost Averaging (DCA), which allows investors to invest consistently over time, reducing the impact of volatility [13][14] Group 6: Conclusion - The article emphasizes the need for discipline during market highs, focusing on business fundamentals, maintaining diversification, and committing to a consistent investment strategy to build lasting wealth [15]

Core Viewpoint - Zscaler's share price is projected to reach $360 due to positive technical price action, favorable analyst sentiment, and strong business fundamentals, indicating a breakout from a long-term trading range [1][2][5]. Group 1: Business Fundamentals - The recent breakout in Zscaler's stock price is attributed to business fundamentals catching up to valuation concerns, leading to an improved outlook for sustainable 20% growth and increasing shareholder value [2][10]. - Zscaler reported a solid fiscal Q3 2025, with revenue exceeding analyst forecasts and growth remaining above 20%, supported by accelerated gains in billings and deferred revenue [10][11]. - The company has a robust balance sheet with over $3 billion in cash and equivalents, a 21% increase in net income, and an 18% free cash flow margin [11]. Group 2: Analyst Sentiment - Analyst activity shifted positively following Zscaler's fiscal Q3 results, with a 17% increase in the consensus price target and no decreases tracked among 36 analysts [5][6]. - The consensus price target reflects a 25% increase compared to the previous year, indicating strong analyst confidence in the company's performance [6][11]. - The stock currently has a Moderate Buy rating, with a high forecast of $320 and an average forecast of $277.32 [11][15]. Group 3: Market Dynamics - The market is experiencing a recovery rally, with projections suggesting potential new all-time highs in the range of $375 to $403 [4]. - Institutional investors own 41% of Zscaler's stock and have been buying on balance throughout the year, providing a solid support base for price action [13]. - Short interest was at 9% ahead of the release, setting the stage for a potential short-covering rally [14]. Group 4: Product Development - Zscaler's new product, Z-Flex, is designed to streamline security stack adjustments for businesses, enhancing flexibility and scalability while reducing costs [9][8].