Saturday, September 27, 2008


Sharing a thought...

Hope the previous column helps you to refocus on your long term gain instead of the short term pain that you are experiencing. As usual, to me, this is an opportune time and it has never been better than now for those who wish to amass wealth at low, low price. Invest on a regular basis to capture the benefit of Ringgit Cost Average (please refer to my previous blog on this subject) and be patience. You will reap its benefits in due time.

Did you noticed Warren Buffet, Li Ka Shing, Kenneth Lewis (Bank of America), Jamie Dimon(JPMorgan), back home our Tan Sri Francis Yeoh and the likes are busy right now buying up shares and expanding their empire? Would these multimillionaires/billionaires aggressively acquire companies if they are of the opinion that there is no hope for the economy or company to improve? I am sure they are unsure when the sun will shine again but being long term investors and knowing that they are buying good potential companies at very low price they continue to pick up what normal people would not. What about you?

Wednesday, September 17, 2008

Being Investor

Sharing a thought...

The past couple of days of bad news further aggravate the already cloudy equity market. The old financial wound from the States has reopened to reveal gangrenous state of its financial woes infecting other markets. Furthermore, our current political situation rubs salt to the already bleeding local equity market making it one of the most undervalued market in the world! As people continue to speculate how bad the world's financial market will be in the next couple of months, it dawned on me that people generally prefers to dwell in the current negative news instead of looking forward and finding the glimpse of light that the situation poses them.

Going back to basic, the definition of investment (which I've obtained from Google, Investopedia) is

"An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price."

Take note of the above words in italic especially "hope" and "future". They refer to the "belief" and "time" that investor have and placed on their chosen investment vehicle to bring them the benefit they desire.

A wise investor looks for potential / growth opportunity in whatever he sow and is willing to wait to see his decision bear fruit. Of course the investment timeframe is dependent on the individual himself which reflect his capacity to wait for the fruit to ripe or financial objective that he has set.

Some investors may harvest their crop upon it being ripe whereas some choose to do so only when they are ready to enjoy the fruit. However, there are some investors who may decide to remove what they have just sown as they have changed their investment strategy or due to their inability to wait for their investment to fruition which causes them to incur losses. Lack of planning could be another reason for this type of investor.

Generally investor would like to see a big crop but not many are willing to do what is necessary to ensure they reap a bounty eg investing regularly and reviewing their investment portfolio to ensure it is in line with their objective. Placing seeds in good soil may help them to grow however regular watering and fertilizing is needed to ensure it reaches its full potential.

At times, bad weather may damage the crop but does it mean the farmers abandon their land or stop planting? Or hold on to their bagful of seeds and what? Would the seeds give them the kind of rewards that the crop gives? Farmers also face uncertainties but they proceed to sow their seeds inspite of the challenges they may face. They continue to plant and take care of whatever they have sown as they believed that bad weather will give way to good weather and await for the sun to bring their crop back to life.

Being a responsible investor, it is time to review our investment objective and relook at our strategy for achieving our financial goals. Understand that for anything to grow, it requires time and constant care especially to withstand bad weather (financial/economy crisis) or even pests (politics/inflation).

Diversification is the word that smart investors hold dearly to their heart as they understand that is the key to protect their investment portfolio and wealth. Take it upon yourself to read and learn more about investment and its various tools. Choose only the tools that you are familiar as you progresses in the wonder of the investment world to achieve your financial goal/s or create greater wealth for yourself and your family.

Friday, September 5, 2008

Managing Money Part 2: EDU

Sharing a thought...

Hey, didn't managed to post my entry last week as I was away for training and it was an awesome week for me! It was a 5 day training and last till past 11pm and therefore had to recuperate for another day in Singapore to avoid having the panda's eye look. But it's worth it!

Continuing our previous entry on managing money, hope you are excited about this, the next jar that I'll introduce is the Education jar. What a coincidence! ;) ;)

Would you agree that our income is in parallel to our knowledge/skill? Therefore, putting aside 10% of your net income to improve your skills and knowledge is imperative if you desire to see your income grows. Training should be continous and should not be restricted to vocational / technical skills as soft skills eg management or leadership skill is equally important.

Depending on your interest or your vocation, investing in public seminars, books, magazines or even to learn new skills or opportunities to expand your mind and interest is highly recommended too. For example, if you are interested to learn more about investment and the various tools available, sign up for such seminar which is abound in the market. At times, such seminar is even FREE! Therefore, by investing your time and/money in such knowledge we are actually shortening our learning curve as we learn from other people's experiences, ideas and mistakes and thus enable us to achieve our dreams faster with fewer mistakes.

At times, from such trainings or even reading certain books, you would even discover new things about yourself which you never knew or even opportunities that you did not know exists thus enables you to explore further and hopefully finds your new destiny. Exciting isn't it?!

Therefore, invest in yourself and see how it rewards you in the future! But of course, knowing and doing what you've learnt (action) have to go hand in hand in order to see some results otherwise, it is just knowledge. Input must have an output => results. Hope the below audio/video would inspire you to ACTION! You have to click (act) to view though.. Ke, ke!

Just to share with you, to create this blog, I took the time to attend the class held in Kota Kemuning on a Sunday morning. Even though the class was free, but by making the commitment to learn something new and spending the time and losing my way there (as I've never driven to Kota Kemuning before) I've acquired a new skill which enable me to share and teach via this lovely channel. That's the reward for investing in learning new skill and am proud of myself for that! :) Furthermore, I've also found a lovely place for a nice bowl of duck noodle ala Bidor. Yum, yum!
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