Friday, September 14, 2012

What to invest in?

I always receive question from client about what to invest in. One of the simple method I always tell them, invest in “best” company, that should be the direction for all investors. Many investors get the direction wrong, then after few years, only realized they had in the wrong path. Then another question will come... how you know which company is “best”?

Today, we can build a business if you want. Many business will end up losing money, in order words, to build a successful business is not easy. Stock market is a place where it provide investors a platform to buy a successful business, but you need to know the way how to pick the good company.

One of the way how to pick a great company is look for company that can create value or income. Those company use fund from investors to create value to people, produce healthy product or provide service to improve quality of life.

The other way to look for it, look at your personal monthly expenses, I believe cost of living is take up about 50% of your income. Just go through and find out which item involve monthly charges, it's a necessity, you may not able to cut it even if you want to. For me, there are few items, one of them is hand phone bills.  

According to statistic, average Malaysian spend about RM150 for post paid customer and RM50 for prepaid customer every month. Some people even carry with them two hand phone, especially smart phone become a trend now. Beside the hand phone company, Telco service provider are making good money every month!

Last, remember the direction is to think as the owner of the business, if not, you will not enjoy the process of become a millionaire after few years. Don't regret later and say “if I never sold the X stocks certain year ago, I will become a millionaire today!    (refer to my blog: Long Term Investors)
Note: In addition to my disclaimer clause in my blog, I hereby confirm I have bought Telco services provider Maxis and Digi shares few years ago and with intention to accumulate more shares in next few years)

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