And investors went crazy. Like moths to a flame, the (price) action attracted a lot of attention. This phenomenon isn’t unique to stocks; the same thing happens to other commodities, too – you’ve seen the long lines at gold jewellery stores when gold price broke RM300/gram.
(P/s – Never think you’re immune to FOMO, best to stay humble. Having an ego and thinking you’re more rational than the crowd could will be your downfall.)
So… you want to start exploring stock investing in Malaysia, but don’t know where to start. Here are 7 articles, to read *in order* that will help you in your stocks investing journey.
The idea behind investing in the stock market is easy – buy shares from companies you like, wait for it to grow, and earn a profit through dividends and/or increase in value.
(You can also make money if the share price goes down – that’s called shorting, but that’s not halal and more suitable for more advanced traders so let’s not go there).
But if the idea is so easy, then why do I find it intimidating?
Bursa Malaysia knows that many people have the same feeling. Part of their mandate is to attract more investors to the Malaysian stock market, so they come up with various initiatives, including educational ones, to help us overcome that fear.
In this article, I’m going to give you a condensed but concise pros/cons list of five of the most popular investments in Malaysia: fixed deposits, mutual funds/unit trust, stocks, gold and properties/land. I’m also going to give you the tried-and-tested strategies that work well with each type of investment.
Why these five? Simple – because the overwhelming majority of us will start our investing journey with one of them first.
On 12 January 2019, I attended an investment event organised by multi-award winning Kenanga Group. The name intrigued me right from the start – you don’t come across something like Market Outlook Symposium 2019: Smart Investing or Dare Betting? every day. Held from 9am-2.30pm, the event packed in five speakers (and a lunch break). You can check the agenda of the day and speakers’ profiles here.
I had fun live-tweeting the whole event. Click on the Twitter thread below to read 50+ tweets giving play-by-play account of each speaker’s presentation. Among others, you’ll find stock picks by Kenanga Investment Bank’s Head of Research, a warrants trading tool (that may help you get double-digit ROIs), what to do with your money during bear markets and more.
Here are some things I learned from the event. Some commentaries are not specific to the event itself, but an overview of the general investment events scene in Malaysia. This article is sponsored by Kenanga, but all opinions are mine.
#1 – The Kenanga-organised event… exceeded expectations
Different headlines by different news publications reporting from the same source – ‘The State of Households 2018: Different Realities‘ report by Khazanah Research Institute.
There are lots of data inside both articles, but here’s what you need to know: the poor spend a much bigger portion of their income on expenses, leaving them without much safety buffer (if any) for emergencies.
With Budget 2019 coming up, I expect lots of financial support given to this income group (as it should).
If you’re into Malaysian stocks, you must have heard of Leigh from DividendMagic, the 28-year old financial blogger. Leigh’s investment of choice is dividend investing, and in his blog he freely (and anonymously) share the stocks he keeps (and sells) and how they perform over the years.
I told Leigh how stocks have always been intimidating for me, and asked if he could teach me how to read financial statements so I will know what information to look out for in that long-ass document. He said yes 🙂 With his permission, I’m sharing what I learned with you people too!
What an insightful read! The study was conducted in the US, but the sample size is big and the research was thorough. I believe the conclusions are applicable to our Malaysian context, too.
If I were to self-rate myself, religiously speaking, from a murtad-to-ustazah scale, I’m probably something like a 6 or 7? Does this mean if I get more religious my financial life will improve further? Penny for your thoughts.
You know you gotta invest. That’s how you can achieve financial freedom. But dude, there’s way, WAY too many investment options out there. Some are legit, some are not. How do you know which ones are investment scams?
As someone who reads/works/writes about finance, I like to think that I can make that snap judgement whether an investment opportunity is legit or not. The last thing I want is an ‘investment’ that actually scams me out of my money, you know? In a Lowyat thread I was recently reading, this girl was lamenting her father’s tendency to get sucked into such ‘investments scams’, which resulted in him losing much of his money. Fella’s retired, too 🙁 My heart breaks for this girl.
So I thought, Imma write about what I know about spotting un-legit investments.
Starting something new: link love – where I curate the best articles about personal finance! I also like to add the ‘personal’ part of finance in, so they are not aaallll about money. Here are the best from the web in December 2015!
This one woman regretted her RM200k wedding. I am an older sister to a younger sister who is about to get married, and I am worried that she will start her married life with loans, or seriously deplete my parents’ retirement savings just to ‘keep face’ 🙁
Which is more important – time, money or love? This incredibly personal post by Mr Stingy made me think of life. There’s no point in having money if you don’t have time or love.
I followed SpeedRent’s development with interest. Did you know that property agents gave him death threats? All because they found a way to do their jobs better. The update now is that their in-built rental agreements are legally binding. Very cool!
Techies rejoice – in this list, programmers, developers, analysts, and designers bagged 10 out of 25 best jobs for work/life balance. In Malaysia, I’m looking up to these programmers – they are behind some of the apps we use.
I found a really cool blog yesterday. Dividend Magic is the pseudonym for a passionate Malaysian stock investor, who I found out is just 26 years old. He posts about the performances of the companies he bought stocks from, which is fascinating. There’s details about dividends received, goody bags from some companies, and annual reports.
Bonus: he covers his personal information with small bottles of liquor, and toys (Iron Man figure and a small Vespa), which cracks me up. I guess he was taking pictures, and went like, “hmm, better cover my name/address” and just looked around and took whatever’s closest to him hahahah
Look. Omg so cute I kenot.
Because stocks always feel so intimidating, it’s nice to find somewhere to get that human touch, that human explanation, without unnecessary bombastic words and jargon. This definitely made my day 🙂