19 July 2011

What factor(s) should you consider for long term investent in Shares/Stock?

Over a 8 years experience of investing in stock market (especially in Malaysia), I have concluded a very important yet simple factor that everyone has forgotten when they are making their investment decision, that is 'the Management'.

Let me give you examples to illustrate how the business grows in below companies (you can correct me as below are all my opinions):

1. Air Asia

Led by Tony Fernandez, his background is from a business family. He went to UK to study and worked under Virgin Boss. His great achievement is to use RM2.00 to purchase the aircraft company and turn it around to be a profit-generated company. It is a proud of Malaysia as many people around the world know about Malaysia through it. I believe that everyone in Singapore / Malaysia would have the chances to take the flight to Asean countries (as well as another 2 low-cost carriers). Tony is now Top 30 Richest Man in Malaysia. His brilliant ideas and aggressive move to Asia makes him famous. I still remember that AirAsia sponsored Manchester United Football Club (MUFC) shirt. As an agreement, you would be able to see the MUFC logo and stars on its air-crafts. I like its slogan - 'Now Everyone Can Fly'.

2. Mah Sing

Led by Tan Sri Dato Seri Leong Huy Kum, he managed to create his own real estate empire in Malaysia since year 199x. After about 15 years of hard work, his team now is one of the top 5 developers (in term of sales) in Malaysia. The 'Perdana', 'Residences' and 'Lagenda' series shows a high quality in manwork in design as well as building.

Its target is to expand the business to region and to be the regional world class property developer. The market values appreciated since year 2000 and now stands as over MYR2.0 Billion.

3. Top Glove

Tan Sri Dr. Lim is the founder as well as executive chairman of the company. Its ambition is to be the Top Glove Maker in the world. The market shares that it acquires is around 20%-30%. Its plan to further grow is to acquire more agricultural land to build the rubber plants. I believe it can maintain its advantages over other competitors through economy of scales.

4. Public Bank

Public Bank is a famous bank in Malaysia led by Tan Sri Tay Hong Piow. He was ex-GM of Maybank and subsequently set up his own bank. Over 1,000 shareholders attend Annual General Meeting and praise him for making them millionaire over 40 years.

5. CIMB

CIMB is currently led by Malaysia's Prime Minister's brother - Nazir bin Razak. His ambition is to grow investment banking in Asean region. We can now see CIMB in various Asean countries. CIMB once became the biggest market value public listed company in Malaysia.

6. SIA

SIA is an example of excellent execution company. Due to its talent policy, a lot of talents are working under the company and making it the top carrier in the world. I believe SIA can remain its competitive strategy over other competitors due to its strategic location (Singapore).

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