Ep33: Roongkiat Ratanabanchuen – Risking It All on a Falling Stock

Roongkiat Ratanabanchuen is a Thai banking professional who has an impressive portfolio in the areas of a pension fund, mutual fund, and microfinance.  He is currently a full-time lecturer in Finance at Chulalongkorn University in Thailand.  He also worked as a Risk Management Officer at Bank of Thailand.  He graduated with a Bachelor’s degree in Automotive Engineering at Chulalongkorn University and earned a Master’s in Quantitative Finance at Cass Business school in London.  He finished his Doctorate in Pension Fund Management at the London School of Economics and Political Science.  He was awarded the 2017 CFA Institute Best Paper Award in Micro Structure which is a research scholarship in microfinance from the National Research Council of Thailand.  Recently, he won another research scholarship in the area of risk management of saving cooperatives from the Thailand Research Fund.

In today’s episode, Dr. Roongkiat shares some of the investment mistakes he did when he risked it all on a falling stock. The time he spent managing that falling portfolio, caused him to miss other investment opportunities and for a time affected his confidence.

Listen from his story and learn what you need to do to avoid the same mistakes he did.

 

Learn to diversify and put that into action.”

Roongkiat Ratanabanchuen

Topics Covered:

00:54 – Andrew introduces Dr. Roongkiat’s educational background and his research scholarships

02:23 – Sharing his worst investment ever and the story behind it

03:12 – Dr. Roongkiat tells the reason why he retained his investment and other problems encountered by the company

06:29 – How time lost and faith in the company brought him further problems

08:14 – Lessons learned from both Dr. Roongkiat’s and Andrew’s investments

13:25 – Citing his recommendation to avoid suffering the same fate

 

Main Takeaways:

Lesson 1: When you invest in a company, you need a lot more experience because this is quite difficult for us when the company can build around.”– Roongkiat Ratanabanchuen

Lesson 2: “When you invest, you need to have some discipline that you need to limit your concentration of risk in a certain company.”- Roongkiat Ratanabanchuen

Lesson 3: “Don’t put too much money on one stock, because if something happens, then you may decide and then you may end up in a situation when you don’t know what to do next. You know I do because I don’t allow flexibility on my portfolio.”-Roongkiat Ratanabanchuen

Lesson 4: “I basically came to the conclusion that 10 is the number of stocks that the average individual investor should hold in Asia.”– Andrew Stotz

Lesson 5: “My next recommendation is they should hold them in equal weighting.”– Andrew Stotz

Lesson 6: “Each investment that you have could require more money”– Andrew Stotz

Lesson 7: “Remember when you’re investing something that you must be prepared that at least some of your investments will consume more money than you thought and you’ll have to put more in.”– Andrew Stotz

Lesson 8: “You will not end up in this situation if you have a diversified portfolio and then it will be easier for you just to let it go and then begin it.”– Roongkiat Ratanabanchuen

 

Resources:

Connect with Roongkiat Ratanabanchuen:

Connect with Andrew Stotz:

 

About the author, Andrew

Dr. Andrew Stotz, CFA is the CEO of A. Stotz Investment Research, a company that provides institutional and high net worth investors with ready-to-invest stock portfolios that aim to beat the benchmark through superior stock selection.

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