Wednesday, August 28, 2013



The same knife cut bread and finger.



Tuesday, August 27, 2013

Sell DOW Chemical

Sell DOW @ 37.94. No gain, just to avoid the current bear market.

Wednesday, August 21, 2013

Invest Share or Property

This question is often asked. Invest in share market or real estate property.

Some answer is share, some said property.

We used the statistic data for comparison.

Scenario 1:  Buy a completed house at price RM 400,000.  pay 10% for down payment, the rest borrow from bank with 4.2% interest rate. The house is rent out with 3% rental rate. 5 years later sell the house, how much the investor gain.

Based on Malaysia Housing Price Index, the house price rise between 2 to 12%. The mean of 10 years is 5.6%.

After 5 years the house price rose to $561,000, sell it and reduced outstanding bank loan, thus simple gross profit included rental is $263,460. and net profit after deduct down payment and installment is $106,096. Does this profit return excited you?

Now, we compare what if invest in share market.

Above is past 5 years KLCI performance chart, assume same scenario with initial investment $40,000 and yearly saving $23,473 to investment, plus dividend yield of 3%.

After 5 year, the investment portfolio is appreciated to $310,891 and the net profit is $153,527. Amazing!

From the figure above shows invest in share market is better than property. Bear in mind, there is some risk in investment either share or property.