As from April 2013 my Journey in Investing is to create Retirement Income for Life till 85 years old in 2041 for two persons over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Sunday, 5 July 2009

Invest in Singapore companies???

LOL. Finaly, come across some big name like CEO of WheelLock, Mr David Lawrence talking in the same frequency band as CreateWealth8888.

He said: “Personally, I never buy any structured product. I only buy stocks… There are very good stocks, with good boards of directors, that pay good dividends. So don’t be greedy. Just invest in Singapore companies (such as the three local banks, Keppel, Fraser & Neave, Singapore Press Holdings, SingTel and Singapore Technologies) … with boards of directors - executive and independent directors - with proven integrity.”

He also cautions retail investors to beware of the risks entailed in exchange traded funds (ETFs). In the US, for instance, regulators have ruled out the sale of leveraged and inverse ETFs to retail investors. 'Personally, I never buy any structured product. I only buy stocks,' he said. 'Even if I buy commodities, I buy shares of mining companies like Rio Tinto and BHP. I buy stocks because I have complete control over it. It's a low-cost entry.

'I don't trust fund managers. You invest in funds. What happens? You get a crash, you get redemptions, they have to sell.'

But Mr Lawrence is not suggesting investors rush into the stock market after the recent surge. 'I think, just start looking at the moment and wait and see. A lot of profit has already been made,' he said.

'If you can get the timing right, or a little bit right - I am never clever enough to buy at the bottom and sell at the top - you can do very well. You can make very good capital appreciation.

'But what you don't do is buy, then panic and sell as prices go down, because you are investing in well-run companies that will survive. They pay you a dividend. So even if you buy high and they go low, you just keep them and live off the dividend. Don't buy unless you're going to hold them for the long term.'

Yalor. I fully agreed with him. If you only have capital like $xx,xxx or even $xxx,xxx, please stop fooling yourself by behaving like big boys investing globally for diversification. Stop making your investing strategy more complicated by taking in foreign currency exchange rate risk. When you made a hundred buck in Singapore market, that is definitely S$100 but it is not same for profit made in foreign currency, it can be less than S$100 or in worst case may end up in nett losses.
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