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Investment decisions based on the GE? Hmm…

Posted in Starting Property Investing

This is something close to my heart. Frankly, companies should just do their very best in what they do and not wait for ‘crumbs’ (favour) from anyone at all. There are certain counters in the stock market that usually goes up just before the general election (GE). Analysts would tell you that these counters are ‘related’ to some political party and that’s the main reason for its movement. When we take a step back and think a bit, does it mean that should the general election goes in a different direction, this company would have to shut down? Or that its business would be badly affected? If the general election goes towards the right direction, this company would continue to do well and that all other external factors would also be to its advantage? Including foreign competition? Well, if this is the case, then this kind of company ought to be skipped by normal people like us.

Fortunately for many of us, Warren Buffett demonstrated that we do not somehow need to be connected to any insider before we can buy a good stock. He graduated at the age of 19 and his investments have gone through 13 different Presidents of the U.S.  The current President Trump is the 13th and his investments are still going strong. He is 88 this year.  Here’s some info about him. In a book by Robert G Hagstrom entitled The Warren Buffet Portfolio: Mastering the Power of the Focus Investment Strategy, the author said this about Warren Buffett. “His choice rests on a notion of great common sense: if the company itself is doing well and is managed by smart people, eventually its inherent value will be reflected in its stock price.” In brief, when we buy a good company with good leaders and a viable business, it is only time that its value would be reflected in its stock price.

Coming back to property as an investment or property as a place to stay. Whether it’s before the GE or after the GE, a good location would remain a good location. That condo next to a mall that you fancy today would still be next to a mall after the GE. Some say property prices would rise after the GE since there’s no longer any uncertainty. Some say that the current ‘slightly more positive’ sentiment in the property market is because of the GE and that after the GE, things would be slow again. Some would point out that certain areas may become more developed if some politicians from that area is elevated to a ministerial position. Perhaps they are right. Perhaps we should really follow the GE as a guide to all our investment decisions. All the best to everyone who’s investing, whether they follow the GE or just asking themselves WHY instead. Remember yeah, it’s always the best to start investing early, it’s usually better to buy and wait versus wait to buy and it’s always a calculated risk when we buy things objectively instead of ‘politically.’

written on 13 Feb 2018

Next suggested article:  MRT and rental starts at the same time. Good.


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