30 January 2012

A Retailer In Stock Market Investment

For me, stock market is just an open market for buyers and sellers to complete deals every working day. Every day when I have free time, I will go to "the market" to see whether I can buy one or two discounted "goods". Since most of the time I could not find attractive deals, once I find a good deal, I will definitely buy it regardless the time is bull or bear market.

To be a retailer, I also know that I must use one of the advantages provided in stock market, that is, zero maintainance fee. In addition, I believe the fundamental logical in this world, that is, everyone like to buy good investment. For me, a good investment in stock market is buying a good business which can breakeven as soon as possible, can provide attractive cash flow (dividend), and can keep growing in the future. Is it the same as your? I don't know. But at least I know what I am going to buy is a good investment which fulfills what I want.

Just like other retailers, we buy good stuff and put them in inventory for sale. We know it takes time especially less people know the intrinsic value of a particular stuff. Yes, it is an opportunity for us to buy more and store in our inventory. But the risk is how many percent you can confirm that the particular stuff really contains such value? Don't worry too much. It is just like a normal risk for every business when buying a goods for sales. The more the homework is done, the more the confidence we have to wait for customers.


Until today, I still reserve 10% cash only in my portfolio. Some transactions were done by selling some "goods" in order to buy more attractive "goods". Is it a better decision? I have no idea. But at least, I know what I am doing instead of follows "the trend of price".


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Written by: Xaivier Chia

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