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!!!!

Investing- Why start young?

Hmm, my very first post in my very first personal blog....

I'm 25, started working for about six months, have received 5 monthly paychecks (about RM4k+ monthly).

I'm into share market, I'd described myself sorta mix value/growth investor, also leaning towards dividend play. I'm not into short term or day trading, will hold stocks for long term. Still a newbie, continuously learning along the way.

When I asked my friends of my age group about investing, most of them have never thought of it. Those who save would tuck their money in saving or fix deposit accounts. Some of them choose to take car loan for brand new cars or spending on credit cards, ending up in net debt.

Why start investing early? It has got to do with the magic of compounding interest. Here comes my story telling time~~~~~~~~~~~

In year 2010, Ah Lan and Ah Ciao are both 25 years old, earning the same salary.

Ah Lan started investing RM10k a year in 2010 for 10 years in an investment which yields 5% a year. Then Ah Lan stopped adding additional money and he just left all the money in the same investment vehicle.

Ah Ciao started 10 years later in 2020, invested RM10k a year for 15 years (5 years extra compared to Ah Lan) which yields the same 5% a year. Then Ah Ciao stopped adding additional money and he just left all the money in the same investment vehicle.

Ah Lan put aside RM100,000 in the investment, whereas Ah Ciao put aside RM150,000. Lets see how both of them fare in year 2050:

In end of 2050, Ah Lan will have accumulated approx RM774k

Ah Ciao will have accumulated approx RM663k (RM111k less), despite saving RM50k more.

So who do u wanna be, Lan or Ciao?