Showing posts with label TAKAFUL. Show all posts
Showing posts with label TAKAFUL. Show all posts

Saturday, 11 April 2015

About long term investment

This is my 5th year of involvement in KLSE. While surviving KLSE in this period is nothing more than ordinary, I am still glad that I have made it, with a capital growing at a satisfactory rate.

In retrospect, the way I "handle" KLSE is by intraday, short term (<6 months) and medium term (<3 years) tradings.

Intraday tradings were extremely rare, simply because the energy and time spent is too much to bear. Some examples, MAS and CYBERT(don't learn this). All have gone to holland by now.

Short term (<6 months) trading is something that I prefer more. INGRESS, SBCCORP and PRLEXUS are typical examples. Mostly use chart to look for entry price, seeking a return of 10-30% in less than 3 months. Sporadically, there will be chances to earn "fast money" in a few days, i.e. playing rebound, e.g.  PHARMA and TAKAFUL. When this occurs, if you are bold enough, ALL IN.

Medium term (>6 months <3 years) can be torturous at times. But good things come to those who wait. INARI, PNEPCB and SHH are my old buddy now. Return has been very satisfactory. 6 months - 2 years is a period that I am more comfortably to hold a share, because they always end up good return.

Where is my long term investment?

I understand that my current investment style will not last long. When the capital becomes large, so does the stake. At some point, I will like to invest long term -- in the sense to hold a share for at least 3 years.  This is where your "skill" is tested, to see how well you can spot a good counter, as if PBBANK and GENTING in the 1980s, DIGI in the 2000s and DLADY in the 2010s. What type of companies should I look for long term investment?

Are they companies that I really like? For this, I look no further from AirAsia and AAX. It is the airline that enables me to fly between PEN-KUL and KUL-SYD. But sentiment cannot help making decision in the stock market. AirAsia has been dropping for a while, since it hit a top of RM 4.00 in 2012. If you buy AAX since IPO and hold until now then you would have lost a lot. Perhaps there are just too many uncertainties in the airline industry.

Are they companies that I don't like to involve as an individual? This means health care and pharmaceutical industry. Nobody likes to go to hospital, yet everybody needs to go there at some point. Examples include KPJ, PHARMA and IHH.

How about companies that are needed in daily lives? Consumer products. NESTLE, DLADY and others.

At this stage I wouldn't buy any of these securities. I don't look for long term investment now. Long term investment does not make sense to me if the capital is not big enough, e.g. RM 500k. Until then, I can use a portion of this capital to invest "long-term". For now, the first task is still to grow my capital, which is what I have been doing for 5 years.