Alex Ng started dabbling in the stock market at 19. At 21, after losing a lot of money, Alex realised he had not actually been investing, but rather gambling, on the stock market. With the determination to learn the proper way and succeed in stock investing, he found some mentors and started the journey anew with RM3,000. Alex became a millionaire by 29.

Yes, you can be a millionaire investing in the stock market while being in full-time employment, said the millennial investor who now teaches and mentors others at VI College, where he is a master trainer and speaker.

Click here to join Alex Ng’s Behind the Stock Masterclass for free, and learn his secret stock investing formula. Most VI College students generate around 15%-20% annual returns over the years.

For potential investors starting out, Alex stressed the importance of first developing the proper skills, knowledge and strategy.

“To make sure our investment is safe, we need to ‘know it’ ourselves, we cannot rely on other people. Start right. Get a proper mentor to guide you, one with a good track record and the willingness to share with you the proper skills and knowledge,” Alex said.

Alex advocates the MGV value investing strategy – Moat, Growth and Value. The company behind the stock must have a strong economic moat and is growing and making money, and its stock must not be overvalued.

Inspired by the moat the surrounds medieval castles, an economic moat refers to the distinct advantage a company has over its competitors which allows it to protect its market share and profitability.

“First of all, we must understand that when we invest in stocks, we are not buying a piece of paper where there is a price going up and down. Behind every stock is a business selling products and/or services. The more money it makes, the better the business. When we invest in the stock, we’re investing in the business,” he said.

How do we make money safely and consistently in the stock market?

“Understand the business to see if it is safe and sustainable, and whether it can grow and make more money. At the same time, we want to buy the stock at an undervalued price to generate good returns,” said Alex.

To illustrate “value”, Alex used property as an example.

If a property is valued at RM1 million, you would not want to buy it for RM2 million. But would you but it for RM500,000? Definitely. Stocks and businesses also have this value, he said.

“We need to determine the value of the company. If its stock is overvalued, we don’t buy. If it’s undervalued, we buy. That’s the strategy for value investing. So, it doesn’t matter if the market is good or bad. If the market is good, great, you’ll make lots of money. Even if the market is bad, you can still invest safely and generate good returns,” he said, stressing the importance of due diligence.

Many people believe investing in the stock market is a very complicated affair, convinced that they do not have the skills or knowledge, or the financial background necessary to make it work. “The truth is, you do not need an accounting or financial background,” Alex said.

He shared that many VI College students have no accounting or financial background, but hail from various unrelated backgrounds. Interestingly, one of the most successful investor groups is housewives.

In a recent interview with Malaysiakini, Alex spoke at length on the industries he believes investors should pay attention to this year, and the industries to avoid.

Alex highlighted cloud computing, cyber security and 5G as three industries with great potential amid the Covid-19 pandemic, on top of pharmaceutical and healthcare stocks. On the other hand, he strongly advocated staying away from airline stocks.

Alex also highlighted the allure of investing in the US – the triple gain of capital gain, dividend gain, and forex gain – and debunked a number of common misconceptions about investing in US stocks.

“Investing in US stocks is investing in US companies. You’ve heard of Apple, Starbucks, Microsoft, Visa – they’re all from the US. Even in Malaysia, we are using a lot of US products and services, more than we realise,” he said.

“You can invest in the US even with limited capital. When we invest in Malaysia, the minimal investment is one lot, equivalent to 100 shares. In the US, you do not need to buy one lot. You can buy just 1 share, 2 shares, 3 shares,” he said.

“Let’s say you have RM5,000. Whether you invest in Malaysia or the US, you are still using the same value,” he explained.

Where does one get the best insights?

Google is a great source. The main source of information on any public listed company is its annual report. Every listed company is required by law to issue annual reports, and quarter reports to update investors, said Alex.

Alex also subscribes to Seeking Alpha, and uses the VI App extensively. Developed by VI College, VI App’s unique stock analysis makes investing smarter, faster, and easier than ever before by delivering powerful insights. VI App is licenced and regulated by the Monetary Authority of Singapore, Singapore’s central bank.

VI App shows 10 years of historical financial data. Among the platform’s features is VI Star Chart, which summarises a company’s profitability, health, asset, dividend, and growth based on the analysis of 107 key financial matrixes. The VI Risk Rating looks at certain key financial analysis to determine if a stock is high risk, medium risk, or low risk. Check out VI App at www.vi.app.

Do you wish to discover the secret stock investing formula that consistently generates good returns every year? Get your free pass to Behind the Stock Masterclass with Alex Ng now!