Personal Finance 101: Investing into fast growth companies and ‘normal’ growth companies

Personal Finance 101: Investing into fast growth companies and ‘normal’ growth companies

I love reading about cars but I prefer buying properties. 😛

Yesterday, I posted something I love to read but is still unwilling to spend money on it; cars. I wrote about the state of EVs, which brand is on top, which brand use to be top and what are the brands which may be the future. There is also a chart for upcoming ones too in the top 10 list of brands which are now selling EVs. It used to be a lonely affair for one major brand yeah; Tesla for EVs. Today, we look at both EVs and one particular company which is the number 1 car seller in the world and yet is not even within the top 10 for EV charts.

Fast and Furious versus Slow and Steady

There was a time when everything looks like an opportunity to show that I could do it. For example, easily climbing over the gate of my parent’s house when I forgotten to bring the keys. For example, riding the racing bike as fast as I could to stay ahead of a Sea Games cycling team and nearly fainting at the end of it. There’s more but you get the idea.

These days, it’s more like, okay how do I get over that drain gap safely? Or even just let that speeding car pass me lah. I am not rushing anywhere anyway. This is also the case for investments too. Just need to remember, there are so many younger people and that’s what’s driving many new trends too. So, understand and absorb all sides so that we could make a better decision based on what we really needs. Everyone is different by the way.

What about TESLA’s shares then?

Usually, when a company is growing super fast, it may be putting all its financial resources into growth and thus is unlikely to iffer much dividends. P/E ratio may also be high signifying that people are buying into its shares at a premium because they believe the growth would continue in the near future. This is also common in the technology secotrs where the growth could be explosive. In the car industry, EV brands are considered the future.

What about Toyota’s shares then?

If we look at typical traditional car brands like Toyota, then we will see that the reasons to invest will be different yeah. Toyota’s chart right after Tesla’s below. Dividends are offered to investors and the P/E ratio does not show a super high growth phase anymore. Growing is a yes. Growing super fast is no longer a yes. Toyota continues to sell the most cars in the world even if they are not within the top 10 brands selling EVs in the world today.

I do not own stocks of both companies yeah

I also have no idea which is a better one to buy too. There was once when I was little crazy and bought one counter non-stop. I have no idea if that’s a good idea or not but then I figured I could afford the loss if indeed my aim was wrong. Fortunately, it was fine but I did not keep the shares long enough. That’s a regret for me until today. This is why we should decide based on our own perspective and then just accept whatever happens because it’s our decision.

Cheers.

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