Aboi's Golden Goose

Invest hamik? Play shares? Which one good ah? Got tips boh? Lose money or not? These are several questions being thrown to my ears every now and then. Truth to be told, I am not fond of telling others since my risk tolerance is not necessarily 100% yours. Curious as you may be, remember that my portfolio and preference reflects my personal views, current market experience together with investing strategy.

*Yet to be fully researched

Equities (by Sector + companies)

Consumer Products which is simply my favourite. "Humans are 10,000 times more common that they should be, according to the rules of the animal kingdom". These products will always have a growing demand provided that they have good reputation, premium brand & hold a niche compared to others.

E.g. DLADY, F&N, MAMEE, PADINI*, ZHULIAN*, NESTLE*

Industrial Products & Plantations. I would prefer to invest in companies that is niche in Malaysia such as rubber glove players and palm oil. We are world leaders in both these categories and thus we have world class companies.

E.g. HARTALEGA*, SUPERMAX*, TOP GLOVE, KLK

Construction & Properties. No preferences for time being. GLCs get lucrative projects from current government but with current political instability I prefer not to take my chances. Property developers are earning records profits from Malaysia's heated property market so I would avoid thinking that a bubble might burst not far in the future.

Trading/Services. Again no preference over companies that have strong ties with the government. I prefer those that have strong correlation with population base or a growing economy just like consumer products.

E.g. GENTING, FREIGHT, JOBST, KFC*, PARKSON, PETDAG*

Technology. My least favourite because the nature of tech game is as such that it evolves rather quickly leaving the old obsolete or render it nearly useless to make more profit. Technology companies have to invest heavily in the future resulting in extremely high capital expenditures. One wrong strategy could set the company back several years. YES, INTEL is not in the list of fav because I don't see how convincing at all their conglomeration strategy is.

E.g. GLOBETRONICS* (exception as I am familiar with the CEO for he is my friend's dad)

Finance. Malaysia's banking sector has proved to be very resilient after the 1999 Asian Financial crisis. With healthy ratios and good governance this is one sector I am banking to learn but but but...examining financial companies is far complex than an ordinary company. Thus unable to proceed any further for time being. I still have some preferences though.

E.g. CIMB*, PUBLIC BANK*

REITs. Stable vehicle for recurring income as proven in many other more developed countries like United States & Japan. 

E.g. BSDREIT, STARHILL*, SUNREIT*

Mutual Funds.

I hate big size funds, most of the time they don't do well particularly those of full equity funds. My strategy to expose some capital into bonds which are hard to get directly, some equity funds which are small that do well invest mainly in Malaysian banks or uses fundamental strategy like Graham.

E.g. ICAP, HwangDBS SIF, AMB Value Trust*, AMB Ethical Trust*

A fantastic book to remind you of excessive spending & borrowing

It should be pretty clear by now. The tendency on big mature players such as blue chips and very little towards small caps. Also switching focus on companies that has global presence like exports and etc. Only 20% of invested capital goes to the conservative side (funds & REITs) while the remaining 70% at equities and 10% for holding cash for liquidity. Having said so, my portfolio is an aggressive one :)