Buying Money-Growing Trees

For me, buying stocks is like buying money-growing trees. Entering the stock market is like entering the money-growing tree market.

Dollar 'fruits' = Dividend
Growing tree = Growing companies

You went into the market and you have hundreds of different money-making trees to choose from. Their prices differ from one day to another, that is why so many people flock to that market on daily basis.

Some trees can grow bigger rapidly, and it can be sold to another buyer at a higher price later once it grows much bigger. Some may grow slowly, but they may produce constant amount of dollar 'fruits' every year. Some may grow fast and produce increasing amount of money from year to year.

But buyers beware!!! Some trees may not grow nor produce any dollar at all. Some may be dying or have a stunted growth. Some sellers even decorate their dying trees so that they look better and they can command a better price. Some buyers may lie to you that their infertile trees can produce heaps of dollar year in year out! Those who buy into these low-quality trees will regret later as they won't bear any dollar and no buyer will want to buy those trees.

Choosing money-making trees to buy is highly challenging, it requires certain skills and considerable amount of knowledge as well as emotional intelligence.

I started visiting this market around 5 months by now. I enjoyed choosing and buying bargain trees from KLCI. Watching them grow and bearing money give me immeasurable satisfaction. Currently I have 6 trees in my backyard and they are:

1. Dutch lady bought at RM13.00, currently at RM18.14
I bought it because it can grow bigger as well as producing decent amount of dividend.

2. Coastal Contracts bought at RM2.30, currently at RM2.26, dividend RM0.054
A cheap tree with sustained growth. Dividend is secondary.

3. Al-Hadharah Boustead REIT bought at RM1.33, currently at RM1.42
Bought this tree is mainly for dividend, I didn't expect the price has appreciated about 6.8% in a month's time since I bought.

4. Luxchem at Rm1.07, currently at RM1.06, dividend RM0.03
Bought it for dividend as well a moderate growth.

5. Mudajaya at RM4.37, currently at RM4.41
This tree has gotten itself into bad press recently, therefore it's price dived from RM6.10 to RM4.10. To my very limited knowledge, this company does not deserve such a bad press after all, therefore its current price at around RM4.00++ is definitely a bargain. Also construction sector is going to benefit most from recent government plans, I have confidence this tree is going to have a sustained growth.

6. Wellcall Holdings at RM1.28, currently at RM1.23, dividend RM0.025
Bought this tree mainly for dividend (constant 7-8% a year which is pretty good for me)

I hope my trees will grow slow and steady, at the same time produce some dividend for me along the way. =) =) =)

Label me a conservative man if you want, but I'll be happy to meet my target of 8-10% annual growth.

Happy investing in money-growing tree!!!!