Health is richer
than Wealth
When we are
young, we strive hard to chase after riches or money so as to accumulate enough
wealth for our future. As we get older and having accumulated some wealth, we
begin to be concerned with our health.
Without good health, what is the
point of having vast amount of wealth when one cannot live to enjoy it?
The journey
to achieve wealth comes in many ways. Some invested in properties in the early
stage of their working lives, some invested in the financial investment world,
and some in commodities such as well, gold.
Some climb
up the ladder of the corporate world. But I would like to believe that at some
point of the journey, many would have invested some amount big or small in
equities such as the stock markets.
For those
who invested mostly in properties during the last two or three decades, the
rewards are immensely huge if one is to use the expensive property price as a
gauge today. Investment in property has been quite stable and steady until
today.
What about
gold? Sometimes back, when gold price was shooting up the roof, and overnight,
many new gold investment consultants and gold funds sprouted up everywhere.
Many ordinary people joined in the bandwagon to invest in gold fund. We all
know what happened. Today all is very quiet when we mention about gold.
Now comes the main menu
of the day, the stock market.
After a good
gradual steady rise in share prices from early January till end of September
for most counters on Bursa Malaysia, most investors were looking forward
happily to a wonderful year end closing with Christmas and New Year
celebrations programmes in the list, the unthinkable happened.
Crude oil
prices tanked towards the last few months of the year to touch new five years
low, no thanks to OPEC's refusal to cut down production in order to maintain
price low as to see off the shale oil producers from USA. How long and low will
oil price remains in the next several months?
Because of
this, share prices of most counters dipped superbly fast to near or new 52 week
lows! For mostly individual or retailer like me or you, our paper wealth is
depreciating fast by the days.
Should one
cuts losses now? Should one takes whatever amount of profits including meagre
amount now? Should one stands by and watch and pray for the best? Should one
buys now? What should one do now?
Under such
immense pressure in this turbulence times, many affected investors are bound to
be very stressful. And that stress will not go away as long as share prices
keep going down or under pressure from the oil crisis, from time to time.
One day you
see the KLCI declining 20 points, up 5 points another day, down 15 points again
and down some more. More downsides than even any small upside is the way the
KLCI is moving these days.
Stress from
the declining share market affects our health in many ways. Some will be moody
in their everyday lives, some cannot concentrate on their work anymore, some
will even not be able to smile when at home with their family, some will find
their wife's delicious dinners no longer delicious any more, some will even
cut down on their life style (My meaning is downgrading their lifestyle!)
My purpose
of writing this blog this time is to help alleviate those who are feeling this
damn stressful moment right now just because of the share market.
Firstly, one has to
accept that declining and appreciating share prices is part and parcel of
investment the very first moment you decide you want to invest in the stock. If
you can't accept this, DO NOT INVEST and keep your money in the bank.
You are guaranteed to be able to sleep peacefully and soundly at night.
Secondly, one should
always practise asset allocations when it comes to investment. One should only
invest with the comfortable amount within one's mean, so that one still has
other reserved cash to rely on. If you are able to do so, you are considered a
well disciplined investor who knows how to invest within one's comfortable
range.
Thirdly, an investor
MUST be able to maintain his current standard of lifestyle no matter what
happens to his investment. This is extremely important as one's current
lifestyle should not be tied up to the volatility swing of share prices.
If you have
the above three criterias, then congratulations! You will find that life is
indeed wonderful because you will remain healthy and without stress and
pressure from your investment.
As I have
always shared with my followers and readers that in anything we do, do it with
fun and not stress. When the prices go up, we are happy. When the prices go
down, we are just a bit "hati-sakit" only. And we continue with our
happy daily life.
I hope any
investor who are under great stress in the current market crisis will feel much
better after reading this post. And you will see market rally and market
crashes in a different way instead of the extremely highly stress way.
Buying 3,000 shares of
Supermax Corporation Berhad
at RM1.67 on Dec 16, 2014.
As market
continues to trade lower as fear grips investors as long as oil prices remain
low and in uncertain direction, many good fundamental companies are being sold
down at the slightest of bad news.
The share
price of Supermax hits a 52-week low at RM1.58 on Dec 15 following news
of the boss CEO Datuk Seri Stanley Thai was being charged for insider trading
related to APL Industries Berhad (APLI). Supermax's 52-week high was RM3.08.
Datuk Seri
Stanley Thai, claimed trial to communicating insider information to remisier
Tiong Kiong Choon, 54, that was expected to have a material effect on the price
and value of APLI.
Bad news
will always send shivers down on weak investors who will just throw down their
shares at whatever price they can salvage. It is because of such opportunity
that brave investors come in to buy at depressed prices.
As my
purchased price of RM1.67 is not at 52-week low, but near that low when you
considered its 52-week high of RM3.08, my risk has already been heavily
discounted.
And I also
know that Supermax is a leading international manufacturer, distributor and
marketer of high quality medical gloves.
In case I do
not have time to post another blog before the year end, I take this opportunity
in advance to thank you - my readers and my followers for taking time to read
my blogs.
As promised
in my last blog that I would be posting my contract note for buying Thong Guan
shares, here it is at the bottom.
I sincerely
wish you a Merry Christmas and Happy New Year 2015!
Life is great and wonderful as long
as one stays healthy!
Silver Gold Bull is a very reputable precious metals dealer. You will be provided with competitive, up-to-minute prices and they will make sure that your bullion is delivered to your door discreetly and safely.
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