Knowledgeable investor always have options

I read a LinkedIn article entitled ‘Good Employees Always Have Options.’ I agree with the statement and I think all of us must make ourselves a good employee. I wrote something about it previously. How many of us are blue-chip level anyway However, when we look at some of the news about retrenchments, we would understand that sometimes even being a good employee is not enough because no one knows what may happen to the industry that we are in. Fortunate thing is that if we got retrenched, if we are considered a good employee, we would have options to fall back on. In other words, it should be pretty easy to get another similar paying job or better.
Of course, a better option is to become a good employee and a knowledgeable investor. It does not even need to be investing in property because from the studies, in terms of average, the property prices is only growing along the lines of inflation rate. The good thing is that property asset capital appreciation is based on it’s selling price. This is unlike our savings which will only be increasing based on the actual amount we have. This is likely to be much smaller compared to the property that we bought. Besides, during a slow down, that’s the best time for property investors with deep pockets. In fact, when the stock market is volatile, it provides some opportunities to enter the market at a lower price and hold for a longer term.
A good investor would have diversified his portfolio. A knowledgeable investor would always have options. This allows him to continuously readjust because some sectors would do well even when some sectors are doing badly. For example: Defensive stocks? How about cosmetic related ones? Of course if financial crisis did start externally and spread to ASIA, then the chances for most sectors to be down would be high. Perhaps except food? Starbucks remain a major contributor to Berjaya Food in terms of earnings. Happy investing.
written on 16 June 2016
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