Investment 1

Let’s talk about investment?

We know the rule of high risk high return, low risk low return. In making investment, we should not put all the eggs into a basket. We should diversified our risk by invest in different series of bonds and share. There are many type of investment such like cooperate bond, unit trust, share, and asset.

I heard my friend talk about Warren Buffet, he is impress by the author word: “Buy in when every people don’t need it, sell it out when every people need it!” This implies to me, high demand high price, low demand low price. We buy in low price and sell it in the high price.

Investment is unpredictable. And we are human being, we have feeling, when dealing with investment, we start to be worried it whether making money or losing money. Worried will always cause us making wrong decision. Because of afraid, we dare not to invest and lost the opportunity. Because of greedy, we get into the trap and we lost everything.

Recently, I talk with my dad, he share with me the idea of investment into share. He remind me that, share should do in long term (3-6years) invest rather than invest in just a few day. Quote a very good example: Malaysia stock market has a style that, buy in after two year of election, sell out when the election days is announce. You look at the Kuala Lumpur Composite Index Futures(FKLI). At Dec 2006, its composite index is around 1050, when on Dec 2007 it reach to 1450, when after election April 08 it drop back to 1250 and will continuous dropping.

What type of share you should invest in, if you really don’t know the market performance? For a low risk taker may consider buy in the Government Cooperate Company, such like TM, Tenaga, Maybank, CIMB and others… Remember to diversify your risk. Why we need investment? Because the inflation is too high (petrol and rice), our salary increment is not able to curb this problem, therefore, investment may be an alternative source of income. It may play an importance rule for you to become rich too.

How about the performance for recent Malaysia market? I get to know that is, the resent politic of Malaysia is not really stable. It is unknown that whether the government will be replaced or not. Therefore, the oversea investors dare not to invest into our Malaysia, because they worried that which party they should have contract with? They are worried, once they sign with the recent government, maybe they will face lost if changing government, because the new government sure will review the contract and reconsider again. If I am investor, sure I will look for politically stable country.

I also get to know that, the earthquake in Si Chuan China had brought the hardest economy time to China. But it is an opportunity for us to invest in China share. Don’t you know that 8-8-2008 Beijing Olympic? This activity sure will bring the highest market performance for China, especially the Tourism Company and Hotel.

So sad that, it is not my time to invest, because I don’t have fund! Hahaha, I think after graduate and work for a year, save lot money and start invest as the Malaysia style. Hope we can share our info from now and then….Advise to all, please not too early get into debt by the credit card or car loan… if you buy a car after graduate, sure you will lost the chance of invest, because you do not have much money to invest later. Why don’t invest share first then buy car after you earn money from it?

Really hope beginning now, we can remind each other not to greedy and give info each other what should buy and what should not invest in…