You are too positive. Someone told me this the other day. It’s funny because I agree and yet some of my friends actually think I am too pessimistic too. This is especially when they ask me about properties priced at RM800psf and whether should they buy for INVESTMENT purpose. My answer is always, not for me. Actually, I do not like speculative buys. You either win big or you lose big. I prefer safer or risk-managed type of investment. Risk is always present no matter what we do. As for those who argued that we can never plan for any unforeseen circumstances, do we stop thinking and planning then?
BURSA has been very volatile for the past many months. In fact when BURSA has dropped for a few weeks, my action was to quickly browse through some of the shares which have fallen the most and see if there are opportunities. So, in this sense, I am positive. Since I am only researching and will only buy undervalued companies in my opinion, I am thus positively cautious. Beginning Q4 of 2014, my total investment in BURSA has increased a lot. Maybe I am just too positive? Well, I have no idea but I think the worse case scenario would be that the dividend that I will get is above the usual savings rate but below the FD. The only difference? Potential share price increase and thus healthy return on investment. At least whether this comes true or not, it’s still my decision. No one to blame. 🙂
I have written about RM a few times and will not repeat too much. RM does not deserve to be at current low value. Unfortunately I do not have US$100 billion to prop up the RM, so I can only watch from the sidelines. Property market continue to move albeit at a much lower number than usual. Do note that if it does not move at all, then every single developer would stop launching and the smaller ones may have to think of a new business instead. Look at this current situation as an opportunity. If we are able to think objectively, it is not a threat. Someone said the other day that the retail business is bad. The barometer that I would use would be the Starbucks business in Malaysia. Rest assured, if the whole economy is not doing well, Starbucks would be the first to be hit. RM12 for a latte, are you crazy? Well, truth is, there are many crazy people up till currently. Don’t believe yet? It’s ok, just have to stop drinking Starbucks then. Happy believing whatever you want to believe.
written on 30 Jan 2015
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