You must have heard about the story of the race between a hare and a tortoise and eventually the tortoise won the race slowly but steadily. Similarly, you can’t get rich quickly in investment. Making money is for the long-haul:
Long-term investment: As an example, Genting Singapore (G13) is a winning stock (gamblers are generally losers) in gaming. Invest early and keep the shares for the long term. Over time the stock will appreciate in value You will also reap the reward of a bonus issue, rights issue, and regular dividend payments.
Trusted brands: Invest in shares of companies (if public listed) with trusted brands. What are the trusted brands? Just look at the annual report of the Reader’s Digest Trusted Brands. Among the trusted brands voted by consumers in 2010 by the Reader’s Digest, Asia’s Trusted Brands Survey are Acer, Carlsberg, Canon, Great Eastern, Honda, Maybank, Panasonic, Petronas, Prudential, Public Bank, Samsung, Sime Darby, Sony and Yeo’s
Dollar-cost average: You invest at regular intervals at an equal amount to take advantage of a lower total average cost for the shares purchased over time. It is because when prices are high you get fewer shares and when prices are low you get more shares.
Prudent investment is a combination of picking trusted brands, investing regularly, and going for the long term.
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