785. What I learnt from Share Investment ?? From Newbie to Investor !

It has been a long while since I last written an English Blog. Upon request from some friends and readers, I have decided to write my 1^st English version investment post. My grammar might not be perfect, but this is a good way for me to improve my English and share my investment knowledge to more people.

Even though I am a graduate from Finance and Economic field, my first contact with investment sector was when I started working. I found that most of our basic salary is merely enough for our daily expenses and a lot of young graduates are still depending on their parents. Therefore, I started invest in Malaysia share market since November 2012.

Majority will think fix deposit is the best and safest way to earn extra money. However, the inflation rate in Malaysia is actually higher than the interest rate. So, the more money you put into FD, the more money that you are actually losing. The best way to beat inflation rate is through investment and optimal financial planning. Investment does not only limit to market share, there are much more varieties to choose. For example, Forex, property investment, Forward contract, gold and etc. Personally, my best interest is toward share market because it only starts with minimal capital.

A lot of people think that share investment is like gambling. We gain more return but the associate risk is higher. In fact, there are numerous speculators who lost a fortune in market share, and some even compensate their families or lives. High risk, high return, is this the only limitation in share market? The answer is, NO!

In share market, there are a lot of companies who generate stable revenue with attractive dividends yield. The price fluctuation is not as high and hence these shares are categories as long term share. For example, PUBLIC BANK, MAYBANK, DIGI, IOICORP and a lot of counters are considered as Blue Chips which generate stable dividend and capital appreciation to investors. The ones we saw in drama are usually “GORENG” by Big Shark who like to trap speculators money.

The difference between INVESTOR and SPECULATOR is as below:

1.Investors focus on companies with stable dividend and revenue but speculator put weight on share “PRICE” without doing any research and analysis. Speculator always follows rumors in the market which caused them lost a lot of money.

·    2. Investors aim for long term investment but speculators only care for short term benefit.  According to history and research, long term investors will always be the final winner such as Wallen Buffett.  

I started s hared my share investment experiences in Blogspot since November 2013. I have listed some of my investment stocks which are highly potential, high dividend yield which can be hold for long term (Example : Matrix - Property Company in Seremban with 5% ++Dividend ). Surprisingly, some of my readers starting follow up this company and decided to invest on it. Thank Goodness, this company doing pretty well and its share price increased 30% in 2014. Besides, Matrix’s CEO have donated 500 mil which worth RM1,485 mil to his Secondary school. Therefore, Matrix is a company with high corporate responsibility, high reputation and profit which can be recognized as “5 star” stock for me. I will hold it for long term because 

How do I discover this company?? Actually I put a lot of efforts when I started my investment journey:

1.I read financial news and reports every day to update myself

2.Bought weekly financial magazine to add my investment knowledge

3.Prepare and build listed company database, list out the dividend history, market capital, and etc.

4.I have read some experiences and opinion from some investor bloggers. At the end, I became an Investor blogger too.

What I learn from share investment???

1.You only can earn more if you hold for long term, you also can earn from speculation if you smart enough and able to beat the market. Unfortunately I am not a smart person, therefore I choose to be 80% long term investor + 20% speculator. A perfect combination for me now.

2.Wallen Buffett said : Be fearful when others greedy And Greedy when others Are fearful. In my first year, I always sold my share when market drop sharply and bought new counter when market doing well due to lack of experiences. After invest for more than 1 year , I used to the price  fluctuation in share market and able to control my emotion. I believe I can perform better in future because I learnt from my mistakes. 

For conclusion, I wish my sharing can raise awareness among young generation about the importance of investment and financial planning. Old folks always told us NO PAIN NO GAIN. Therefore, welcome to investment world and feel the PAIN. You maybe will become next WALLEN BUFFETT. Just kidding mate !!!!!! :)

Harryt30

20.21p.m

2014.08.09