By Andrew Chia
What You Need To Know About Investing
Business.
Yes, everything that makes money is ultimately linked to business.
Would you like to become an enterpreneur? Perhaps yes, perhaps not. Would you like to invest in a successful business like Robert Kuok's PBB? Or Teh Hong Piow's Public Bank? Genting? IOI? How about Maxis or Hong Leong Bank? How about YTL or Top Glove?
Now, how would you invest in those companies if you do not know anything about business? What are the things we should learn about business, by the way?
Well, for a start, you should know some of the reasons why those businesses mentioned above are successful. At the same time, you will find out why the others failed.
Let's take a look at some factors...
Industry - which are the ones making money
Dividends - you can forget about investing in companies with less than this percentage of dividends
Return on equity - what is the minimum % you should accept
Earning per share - what is the lowest growth rate acceptable
Debt equity ratio - what is the level that is considered dangerous
Turnover - what is the industry's norm
Gross profit margins - what is the minimum acceptable
Net profit margins - how do some businesses achieve this performance year after year
Track record - what is the minimum you should consider
Cashflow - why this is important for a successful business
Management - what are the factors to look for
All of the above will be covered in my Stock Market Secrets workshop, the upcoming one will be on Sunday 10th January 2010. Details here,
Yes, stock investing is all about business. A good knowledge about the basics of business will go a long way in fulfilling your dreams of being a great investor and achieving financial independence.
If you are planning on starting your own business, this workshop will be invaluable in giving you ideas on all the pitfalls to avoid, as well as pointers on how to succeed.
I will see you there.
To your success,
Andrew Chia
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