Stock Market & money related sharing

New economy impact - we know salary going to increase, services and goods price going to increase faster than previous year. Policy can not be changed but we can plan and take advantage of this to invest for future, especially build up retirement income. One of the way is invest in REIT. Several reasons why buy REITs: 1. Low interest rate - with current interest rate for FD around 3%, the return from REIT is better. For instant, with $10,000 invest in REIT, one can earn passive income of about $800 per year, as compare to deposit in bank to get around $300 per year. 2. Property is an appreciating asset Before you buying any REIT, ask yourself if you have holding power when market deteriorate like what we have gone through in 2008. If you have holding power and do not sell during the downturn, you will almost inevitably lose money on it. After 2008, property price did rise and stabilize. In fact, any market downturn is a good opportunity, we expect few years later similar to 2008 wil

Noticed one article from Insider Asia Model, they are buying some REITs: Quote As such, we have decided to move some funds into real estate investment trusts (REITS), which offer fairly good yields on relatively low risks. We acquired 20,000 units each in AmFIRST REIT, Al-Aqar KPJ REIT and Quill Capita Trust for a total consideration of RM66,600.   To read more... Unquote This is not a good news for us, as usually those stock recommended will going up due to many people chase to buy. Below are the price for the 3 counters as of today's closing price: AmFirst REIT: RM1.18 Al Aqar REIT: RM1.15 Quill REIT:  RM1.00 Let's keep this record and see if these REITs counter going up.

Today I randomly choose one book from my library, it's related to Warren Buffer. Chapter one - the writer say, Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.  This is the second time I read this book, felt so important and need to write down some points for future reference. Yes, never lose money in stock market, if you fail to do this, better do not invest. The question is how not to lose money? I think first step is find a company that always pay out stable dividend. Invest and plan to hold it for at least one year. If you can find a company say pay out dividend of about 8% p.a., then holding for one year at least better that FD. But why need to hold for one year, someone think they should sell high and buy low? I am not as clever as those who can find the high and sell it, so I choose second option, buy and hold good company. Since we only target those company paying consistent dividend of 7% or 8%, these company can grow 20 or 30% is not a problem. Hence,