Hi CF Lieu here welcome to
my channel. If you have not, you did your first time here, then, uh, you might want to stay until the end of
this video because in this lesson I’m going to actually share with you,
or even if you are very new in, you know, stops investing or
any investing for that matter, I’m going to share with you the
fourth question that you want to ask. When you want to choose what to invest in.
Now, the best way to actually do this is not
to say the investment is provided by which company or were they
recommended by your friend, your someone that you know
and things like that. No, when they come to investment
is solely your decision. And when I say that you’re
solely your decision, meaning that your thought process
must be right, must be correct. And a lot of people try to over complicate
things. So when it comes to, um, uh, really choosing what
to invest in. But, uh, in my years of managing clients’
investment and also my own experience, I would say that really the,
the, the question two attaboy’s
bountiful this fall question. Now if you’re a beginner you might
find is very useful because this simply finding things without or simply
simplifying. But if you’re a veteran, this serves as a reminder to say that
you do not need to really complicate things. And why I say so? So number one, the question that you want
to ask is that this one, this one is called growth. Do you add up all that beauty hedge? You have to ask the question to say,
Hey, is there any growth in this investment? Is My investment growing? Not In terms of the price or
whatever? Uh, Principal Mao, it means that the underlying
asset or the underlying business, there’s generally raping a revenue.
Is the revenue growing or not? What are the likelihood of this revenue
will be still growing year on year? Okay. So the number one question
is, is there any growth? Because anything that is growing
when it comes up investment, where you cost the asset price,
uh, the underlying asset price, for example, the value of this stocks or company and
ultimately the price of this company prepare of this doctor to go up.
So if it’s not growing, then you can know that whatever,
uh, prices that they are at, even though now currently is very high,
it would not be sustainable. So number one question is,
is there any growth? And the other question to
ask is inflation. Now what, what do you mean by that? It means that if you were to
actually invest into something, you want to understand that it’s, is the revenue of this business okay? Or revenue generator from a
company for this business. Is it co-related with inflation? Meaning that if we got inflation is
something that you keep on growing, right? Right. It’s grow slowly or
whether it grow fast, it depends. But basically if the revenue of the, uh, of, of the, of the company or the profit of the
company is positively correlated with inflation, meaning that
when there’s inflation, the
revenue generated from there. It moved in the same direction
as how the inflation moves. Uh,
it means if the inflation go up, then the revenue generator or the
profit generator also goes up in tandem. And then you know, that, uh,
when it comes to this trend, when the revenue is accurate,
positively correlated, correlated, uh, to the inflation grow, which is confirm inflation anywhere in
the world would be growing except of your continuity having deflation. But that
is another discussion for another day. So the thing you want to ask is you
want to thing whether the revenue is actually positively correlated
with inflation or not. And number three is that
you want to understand that. Is there anything,
is there anything that uh, that is beyond the company control any
events and it’s a matter that is beyond the company control,
uh, the company control that can
potentially affect the revenue growth or potentially even the amount of profit
they are generating and a old things like that. So meaning that
if, if there is yeah, if a business is a very vulnerable to a
lot of external factors that even if you put the best CEO or the
management team into it and uh, even with the best people in the world
cannot really manage or control some of those external factors, right?
Beyond company comes or external, if there is something that is beyond the, beyond the control of
the company that you, when you put the best resources or the
people that can manage these kinds of risks and then even the best people
cannot really control this external factor which will be affecting our
profit or revenue, then you, you’ll know that you also want to
be very careful and it can, uh, try to not invest in, in this camp was sector or in
[inaudible] business or, or company. So this is the big question.
Now, the fourth question that
you might want to ask also, is this company actually prone to,
and the part I know, political event or not widely known
as a political political risk, political risk me,
it means if this, the revenue of these are generated by
this company is affected when there is a change of Reno,
a ruling regime or did it change? I want government or change of a company,
Paul, no company policy or changing
the government policy. So how badly with the business side of
things or be stocks or this company be affected, this is what we are talking
about politically political risks. So as a Newbie or even as a veteran,
right? Sometimes people get too over complicated
about what other financials statement and Oh, that, I mean that is
important, don’t get me wrong, but it boils down to asking
these four questions. Very basic common sense question.
Is the revenue always growing, always be growing? Okay? Now I’m
not only talking about one company, one company, because as a
general, the entire sector
must be growing, for example, in that sector or the industry, they might
be five companies. And, uh, over time, maybe the top two company who actually,
you know, go into a merger or acquisition of another
smaller company and they become the two big player and eliminating all the
combat. You don’t know there is fine, there is still a good sector to
invest in. Don’t get me wrong, right? You just have to say that you don’t
place all your bets into this one. Combinational instead you want to place
your bets in the sector itself, right? So no matter competent this be a company, a wins or company B winds are
commonly see wins in this. They are fighting each other within
the sector. You know, that you, you, no matter what you still make
money is because, or simply profit. They will be because the entire sector
is growing and in the entire sector is also a positivity.
Cole really that we invasion, I mean innovation in other
words impact them positively. I that is even a good
thing because inflation, it impacts them negatively. Then there is a bad thing
and the third is, is beyond, is there any sec things
that actually is beyond, uh, and the external sector that is beyond
or outside of the company contract. You if the best management team, if they are external factor that
actually affects a company revenue, which they cannot control, then
that is a, another uh, a rep site. I wrap flag and I’ve got political
risks, right? Political risks. Uh, but uh, the thing is I want to
actually jump onto a, you know, uh, whatever available sector
in this, uh, in, in, in, in uh, in Malaysia, Bursa
Malaysia, one, two, uh, accurate jump to this and uh,
you know, show you what I meant by uh, these, okay. So, all right. So what happened is a, I’m going to jump to here and I’m just
going to show you if you are new into this and depending on the trading
platform that you are using, a, you might be able to see our filter by,
uh, the different events sector. Every
sector had his own stops, our company. Then you can filter and rather you have
this platform that can through the so user friendly navy pants.
But uh, for this I’m going to explain
more what I mean by that. Now you know that when it comes to
main market or get your school two main market, and I’ll give you this
different different sector, right? When it comes to investment
investing into spots and whatnot, uh, you’d see that. Now let’s
go, go through these one by one. When it comes to consumer products and
services and is further broken down into um, agriculture, automated
consumer goods, food and beverage, how household goods personal goes to
retailers and Ciara and let Realia. So jump back to our question, is that for consumer products and
services view there be any growth? I think that for certain as
the population, there’s more, the population is growing
then or the country’s growing, then there is a demand for more
consumer goods. So in that sense, I would say consumer product
or services are growing, but whether they are co-related co-related
positively, we inflation on this. Another thing. And if you,
again see that, uh, you know, food and beverage at all
these unnecessary item, yes, people might need this for the day to
day living, but when really inflation, I mean, imagine the foot prices
so they jump up by 10 times. So people are going to spend left,
right? Because they do not have
that kind of spending power. So number two question that
question. Number two, the
check check list. Number two, that is to say that inflation
when it comes to, uh, these,
uh, consumer products and goods and service
is probably not positively correlated with inflation. Okay. How
so goods, I know that. So the third question we always
ask is that, is there something, is there anything that is beyond
these are control beyond the, uh, company or business in the
consumer products industry? And it thinks that it’s
beyond our control. I mean,
so for me, yes. Like you mean, uh, when it comes to any good, sorry,
consumer goods, you know, you, you need, these are the raw material to actually
make the goods. So this raw material, uh, something that is beyond
contract because this long
raw material might have a increase in prices in ms raw material
and therefore you might not be able, you know, when your costs to manufacture
a material actually increases. So you, you have no charge, right. But to actually pass on a pass
visa costs increase their consumer, right? So that, that you
can do, but to expand that, I think if you’re past the cost 40 and uh, and to what their consumer, not a book and a photo by then
there is also a bad thing. So you are not able to actually
get more business mean sell more. So in that sense,
for a lot of businesses, especially in the very competitive
for consumer product services space, they realize that sometimes when the
raw material of the good increased they have, if they have to actually absorb part of
it themselves and therefore they will have a decrease margin or decrease profit. So if they are in this kind of scenario, then you know that if you’re
already invested in, maybe
it’s time to switch out. If you have not invested in. And you’d
better not invest into that. Right. And for some things like agriculture
product, it could be, uh, things like, uh, [inaudible] [inaudible] commodity
prices or when it comes to agriculture product,
uh, things like the weather and all that
might also affect the output of our econ geo product,
which affects the revenue. And so these are the factor
when it come to the climate, when it comes to the weather, it is really something they
used to be uncontrolled. So question number three is also a
yes for consumer goods or some of the consumer goods, right? So you know,
the of this tree we discussed so far, they are acting very vulnerable to
Calcutta at external factors beyond their control, the business control,
uh, and the, and the third one. And the second one would be,
uh, when it comes to the, this inflation positively correlate that.
So they are really not, they are maybe passionately posse, partially positivity Corey that
you call revalue invasion. But, um, in most cases the halfway decrease margin
because they just are not able to pass fully,
but costs the, increase the height in the costume
manufacturer or the make that goods or consumer goods or products
to the consumer. Uh, so, uh, you can see that,
uh, even if you’re going to see what
are some of the company over here, then we can talk about, uh, you know, come that and apparently me close
and gamma and especially for cameras, we build my guess by
less. If, you know, your, this to me is even,
you know, these are aspirational purchase
like go and all that. Now, uh, just, uh, let’s move on to this one. Main market and industrial products. Industrial product in my opinion
is a bit better because, uh, uh, as long as a year end customer,
uh, businesses in industrial them, B two B, we are talking about a
business or building materials
or chemical diversity by industrial industrial engineering
and all the piping and all that. Or are there are so many things that you
and I even don’t know about that mix up, you know, uh, the buildings or
the infrastructure and all that. So it’s one of the most
resilient is sector even
though you’re doing the session as long as the country is developing.
Okay. So in terms of, uh, whether that
inflation correlate that well, it’s not [inaudible] come to as it is
development this country in any country or any region, then you know that
the company supply these, these, these kinds of industrial products
or goods to these are businesses. Uh, we will be profitable. But in
terms of growth, well, like I say, as long as the economy is growing or
even if the economy’s not growing, imagine in Malaysia the economics
technology, but some of this company, if they are able to actually say,
do an export, so they’re able to actually explore out
and they find a new market outside of Malaysia, maybe that numb and all this country
rather have customer or see who are still having this meeting,
I’m going to be China. Then you know that there’s still growth
over there in terms of whether there’s external factor affecting these are
industrial product. And so is this now, you know,
that uh, external factor when it comes to this
industrial and is very likely this in Russia.
So we sort of product that was nip, a lot of these are material like go
or motto and everything like that. So to actually auto manufacturer. So to a certain extent the material, I think the raw material they are used
to make the industrial product is also something that they are
not able to control fully. So this, there will be some
vulnerability or were there, uh, but in terms of political,
politically political risks, uh, on the first layer when we think of it
might be not prone to any politically or lead technical risk. However, just think
of it that way, right? In Malaysia, you know that when it’s the
change of government and you know, if a new government,
they actually hospital, I did cancer allow those huge construction
contract that is under way or one to start. So basically this company who
actually, uh, have these, uh, uh, so caught in robbing this project,
southern me, they would see that like
this project is a youth hunt. So they cannot actually
make profit out of, uh, our wheat when there’s a lot project that
has been Ken. So, uh, by the government. So these are second level of analytics. You have to think about people
essentially to happen already. Uh, I can share with you, but,
uh, the political risk, political risk is always
there when it’s come to, uh, these are industrial products, especially if it relates to
an industry that depends on, that’s a government project
on government infrastructure, same as construction
also for construction, you know that well,
construction [inaudible] in some
structure. What are the, the, the, the largest project are the
most profitable project is
always almost always from Carmen and I of course private sector
if you have that is good. But um, these are also same concept that I want
to talk about when it comes to these construction sector. Need to see
industrial. A lot of these, uh, contracting sector could be political,
uh, co-related high possibility.
Not a must. A yeah. And a lot of external factor
cannot control and whether
there’s a grove or not, it depends on the general economy. So you
can see how that relates over here. Now, technology company is a pretty interesting
because anyone is talking about technology, but you know, that technology
company is, um, it’s a bit, uh, it’s, it’s, it depends. Okay. For example,
we are talking about, let’s see, we are talking about, um, uh,
semi conductor, right? Uh, what might happen in so many conduct, semiconductor is always
a very cyclical industry. There’s up and down and there’s up
and down. And in modern day, uh, the semi conductor is still,
uh, it’s still on the uptrend at a time and
most of the cases, because you know, what you’d Chick car, uh, you know, idea to this smart phone and all the
electronic components and all that. So there’s southern is a lot
of growth over there. Uh, then when it comes to
invasion correlate that, uh, I think is not that applicable.
Uh, as long as these technology,
uh, they are making goods or services that
is affordable for a lot of consumer as you know,
uh, they are not invasion corridor because
even though our hand form for example, smartphone are getting
more and more advanced, these not really getting
much and much and affordable. Of course there is certain things that,
you know, iPhone 10 xs and all that, that costs you about five,
6,000 a pop. Uh, however, very talk about you just want a
very simple affordable for an east, not affordable, right? Just could
get one smart phone. We’re five, 600, a very decent one.
Uh, but it comes to when it comes to
digital survey in software and all that. Nowadays, another different matter because
we have seen cases like company line, my Eeg, uh, they actually
have these, uh, you know, a driving license renewal
rotech renew online. But the main driver of let’s say my,
either the company is basically, uh, depending on a lot of these,
a government contract government’s system, Colby later for example, uh, in Malaysia, one’s a new government took over.
They said they were going to scrap, we are going to continue the
GST pain GST system. And then, you know, it’s my EG as a company. Uh, they initially for this huge revenue
or contract coming because they are actually, uh, having these, uh, government contract to do this GST a
goods and service, that monitoring system. But now after that is no longer the case
because the whole [inaudible] system was being scrapped. So you
know, that a technology company, you have not had to look at second level
deeper to see whether some of these, uh, he’s our business.
By the nature of that, it depends on the private sector or
the public sector is a public sector. Then you know, that government policy can change anytime
and had the change of our minister and whatnot, which could make
your, uh, your, your, your investment Eki go the other way
where you’re expected to go uphill. So yes, generally, yes, there’s
growth, but there’s a technology, there’s a risk or were
there, when it comes to, um, political, political
risks, um, the other thing, how about, how about, uh,
things that beyond control? Uh, well there are a few times that is
also beyond control and they come to technology and you know that it is, it’s
generally a very competitive business. There’s a low barrier of entry.
Now you know that there’s a lot of, if you’re talking about one
kind of software, right? One kind of software so people
can just uh, develop our software. Uh, imagine, uh, you have
Uber and Grab and uh, even though it is impossible for any calm, the inner hate actually
start a software company, but you know that the is
not really a monopoly. This is it really in this age. I think as long as you have the right
people and the right skill, this, there’s actually very uh, what I call as a low barrier of entry
when it comes to stopping a technology company. Uh, and then some of this, when your technology accurate go obsolete,
that is rare. A newer technology company, we are
actually over 10 years. So yes, they are this factor
also beyond your control. That’s why you always need to
be for any technology company, always to be in a constant
evolution on change. So if the company is you, you notice
it, the management or the comment, our teams always doing that, then
that could be a good thing. Uh, uh, if not, then you know that this comment
is going, going to go down here, for example, a blackberry
by a research motion, right? Or some that know your
company name, not care. Uh, the are even the other dominant player,
but end up, there’ve been taken over by other more
a faster moving and more innovative company. Um, so what else? No financial services is always
the bellwether of the economy. Uh, banking and insurance.
Now insurance, you know that insurance is
almost always profitable. Um, even though they are, your expenses
are actually insurance claim, you know that when there’s an
insurance claims, you should, a company always can say that I am going
to increase the premium across the BOT or cost of insurance for my, all
my, uh, existing and meal, uh, customer.
So in that sense, I think insurance companies always a
very profitable business in the longterm. So it is not really, it’s almost a necessity is not prone
to any political political risks. I think it’s not that much.
There’s always growth. So you can have two green light over
there and actually is ready inflation. Co-Related because if,
let’s say for a medical insurance, if the medical costs increase
due to medical inflation, when you’re your a medical card,
they can say they’re now the medical cat. You get, it costs higher
compared to three years ago. So it’s a three ticks over here.
Right. Just jump back to here. So it takes, but anything beyond
company control, uh, business control, uh, when it comes to insurance, you
know that there’s one thing, uh, I’m not sure if you notice,
uh, when it comes to insurance because
insurance and banking are very, they are very regulated. Okay.
The, the, the, the, uh, the, uh, the are actually, there’s a lot of compliance and
these were a regulated industry. My, maybe by the central bank or by, you know,
security commission and all that. Um, even for banks, right? They’re very
regulated. So if bangs, you know, one of their main revenue driver is
a mortgage loan. So let’s say, uh, the Central Bang have to
increase or decrease, right? Oh, normally let’s say like the Chris, their
interest rate, uh, because, um, to, to spur more spending
to boost up the economy. I’m based on central bank due dates
based on the whole entire global economic outlook. So when they do this, you know
that banks is beyond their control. They, I mean they cannot say they,
I don’t want to eat the Chris, my interest rate for my in law. It’s not
your product cannot sell in the market. It’s not a mall, no longer
competitive. So in that case, this is the fact that beyond a banks,
uh, banking banking companies
stocks control a say like, you know, uh, fault for insurance.
If, uh, you just impose, uh, I have no example by this imposed some, some rules or guidelines that
you have to follow that view, potentially impact the revenue of
the insurance company. So no choice, they just have to adapt.
And just so all follow. What is the guideline of being
impulse by the regulator. So that is the thing. And I know when we on for property
sector and you know, the property sector, um, uh, property the
sector [inaudible], uh, is always a very interesting tech that
because we are talking about property investment as well, right?
Um, what happened is property
the sector that you know, that the developer, uh, uh, now they
are, uh, they are, they are really, uh, when it comes to oversupply
of residential property, you know, that there is a multiple research
or day pasturing that, um, you know, if they suddenly developed by having hard
time and I think their property goes, or they, uh, under the table, I think, uh, they have these engagement with our
law of investment and collapse or even, you know,
like bulk purchase and all there, it’s all just to get to get
their property inventory. I mean, moving, uh, and things like that.
So property sector is not, uh, not an easy sector. You, if you, you’re bang on the right developer that
really can get the property more and more properties. So because
they just have this, uh, product or PR property, the activists
suits what the market needs. Uh, what the market needs is a, again,
there’s a affordable property, but what the market can afford can afford, it’s also affordable. But what the problem property developer
to deal is actually luxury property because probably there is
a higher margin or there. So you know that probably the
sector is really not easy. Uh, Anessa there’s affected that
you cannot control. For example, the reason people can buy a property is
that they’re able to get a house loan or the mortgage loan. If they are not all ever they’ll get a
mortgage loan because their income is not strong. The credit card is to
really call yeah. Already, uh, basically the desire to
buy properties there, but they just cannot get
a loan to buy a property. So this is the factor that is none
of the developer fault. But again, these are the thing where I mentioned on
what he had, they cannot control them. And when it comes to political,
political reasons, again, you know, government or some sort of band
can impose things lie. Um, uh, now he’s not really a political, but
he more of a policy change. Right. You know that in [inaudible] is gone if
a property that’s called developed by interest bearing scheme,
right? So everyone can just pay us other than
10% and then during construction of their property then you don’t
have to pay anything. But that story no longer valid since
like 2013 and things like that. So when there’s a change of policy,
when I say political, political reasons, not only chain of Karma and many
Chanda of government policy, uh, this property market slow because people
like cannot just go on a buying spree for, for, for this property. So you’ll know that there’s a
lot better be young control. They are prone to this policy change
by the good political risks are, the good thing is
probably the prices. They say they always go up because they
are positively correlated with inflation. But affordability for this case,
they are driving things now. Okay. Because desire is there to buy proper
diva. Affordability become a huge issue. Of course we population growth in me.
Jesse did Ip Mankau JB, there’s always a potential grow. But
like I say, property is not exactly, you are buying vegetables
from the market is a huge, huge commitment which needs a loan.
People cannot get long game. I able buy a property.
So we just talk about this property, jump to this. Our plantation, a plantation
is the thing that I have no exposure. I have unnecessary in this Ah,
phew connotation. Basically by talking about palm oil,
which is corridor, the corridor that via this a
so are a commodity appraiser. So even though you know your,
your, your, your company’s perfect, you do everything right, but then when
the commodity price is actually draw you, you actually feel that you fit as well. So is the same that I could say
for energy sector, energy sector, you know,
um, let’s put a buy and guess which
is a common one that you practice. So I don’t like that because
it violates number tree. It’s not beyond somebody is affected.
That is beyond, uh, the company, what they can,
which affect their revenue. So political reduced maybe last papers
maybe majorly over here is actually this external factor. Commodity
prices beyond your control. Um, inflation, probably not. Uh, this is again a whatever impact of
growth and inflation has really come to comedy prices actually very negligible.
That’s where I taught. Now if you have a different top
comments below and you know, Eh, take light and comments below out.
So moving on. Um, this is okay. Main market
and you know, plantation, uh, what not and codependent
and okay. Main market, these energy. Okay. Energy retalk
talk about this. Health care very, very also very resilient because no
matter what people value their life. If health care,
we are talking about a company produce, have equipment or even lie, lie, lie, lie hospital is hospital a group. I think that is one of the most resilient
that you can invest in for health care. Okay.
If this is your cup of tea, you might want to actually look at this
because if you jump back to this one, uh, growth and you know, there’s a growth
of the growth, right? Because health care, they are getting more and more expensive.
Uh, in terms of inflation. Yes, because there’s a medical inflation. So
for healthcare, these are two pics. Okay. And then is there anything
beyond the company control
or this healthcare company, uh, control? I would say
that, uh, yes, but you know, compared to let’s say for consumer
goods, right? Basically for health care, I think to a certain extent you can
pass more of the increase in costs, right?
That is beyond your control. You can pass that to the end consumer.
Okay. I think this is the beauty
about health care. Um, too bad, I mean for us is no good
but for business then by, I think it’s good because even though
the external factors beyond your control, they can’t get past that to the end user. And how about politically
is I think politically risk, political risk is a lot less
when it comes to healthcare. Uh,
I can’t think of any, when you will be a significant political
risks even though get is, there will be, the impact will be quite negligible. And moving on to this one. Um, uh, telecommunication in media
and, uh, the first, uh, stops or the company come in
mind is that, you know, astro, the satellite, a satellite,
satellite TV broadcaster. Uh, it used to be the monopolar, but now because of the technology change
and now people actually watched youtube apply what you are watching over here,
people can watch you do more than TV. Where is the advertising dollars are
being spent online or digital marketing rather than pay for TV. That is why I think for traditional media
and broadcasting company that actually going down hill, if they don’t
evolve, I think there’ll be wiped out. But the other thing is very communication. We also thought about like a company
like telecom, right? Like TM, right? Tm.
And what happened if TM you stay that uh, it’s bad because it’s not inflation
corridor that and because there’s a lot of competition and you come to Brock Ben
price as you know that he um, yeah, not getting the cheapest, they almost
had a monopoly. But uh, again, uh, the new, the new minister telecom
or Mr actually from, you know, the Pakistan government
actually, uh, come, come, take away in 2018 and we say that we are
going to reduce broadband prices across the board. And this is what the,
the, the, the government one. So for a company like pm,
uh, this is what we calls are political risks.
There’s a change of policy, you will have to comply. No
choice. All right. So, um, so that is the thing. So for me
it’s really it’s a policy change. They are very vulnerable to that. Is there any growth or not
when it comes to this thing, I’ve got these growth but because of this,
um, blanket got policy change
that makes it very, uh, not so desirable at this point of time.
Right? Or any foreseeable future to
Marquette university in these uh, uh, Kennedy competition, telecoms company. And when it come to light a Maxis
and Digij and all that, you know, that if you looked at the news and such, their subscriber base in
Malaysia is almost a saturated. And the only thing is
every year one common, every po higher revenue than
other is Layla, right pocket, left pocket kind of thing because
it’s the same pool of customers. Just that whether, uh, this
year, this telecommunity comp, many company can actually offer better
package that actually pour other consumer or of, um, other, other company to them. Not because there is a
growing subscriber base. So if you understand that and
that it’s one of the reason, even though some of these companies don’t
give very good dividens and all that, but when it come to growth
and longterm prospects, I think we would quite limited. Of course with that coming new technology
like five g maybe six or seven g and all those technology,
we will potentially drive growth. But I do not paint that.
When it comes to this, they are going to like a major
growth like compared to, uh, other things that health care,
right? So if you only have layer, so then some of money you always run good, put it in the one that can
gender the highest growth. Not to say that you just
do diversification for
the sake of, uh, of, uh, diversify the police. Some here, some
are meet the Fockers mediocre. Am I just, okay, we just want to focus on
what a technical perspective, my perspective while we’re here and just
focus on you really, uh, you, you, you, you really think is most beneficial that
can get you the most return money come to investment. Uh, transfer
of detailed log is speed. We are talking about company
like now this is surprising. It is a so called boring
sector wet when you come to, when we look at company like
maybe like Gdx and all that, so the UB transportation company,
but you have to look at the second layer. The revenue growth is actually driven by
the upcoming growing ecommerce business because ecommerce is an all night thing.
But still you need, you actually meet what you
actually still need those uh, what we call off a last mile delivery to
deliver the goods from to the consumer, which means that you know, you have a
good spot where else you just have, uh, from,
from other country or combination, you have put the goods into one
warehouse and then that way, how’s our logistics center? They have
to distribute the goods. So you know, when the volume of
ecommerce going up. So, um, the volume of transaction where they come
with delivery and sending you also go up. So this is why, you know, like, like
parts, Malaysia, Costa Mesa, it’s a bit, it’s a bit, uh, I have some reservation
on that because I’m really, they, their model is still,
they have this brick and mortar, not post Malaysia branches
and all that and you know, post office or when it come with Gdex, either like pure pure delivery business
and they’re expanding oversee. Uh, I know because I’m also using one a is
one of the major logistic provider that in Malaysia.
And that is why our, there’s a huge potential of growth or
we’re here whether they are prone to, why call it political risk. Hmm. I
cannot think of any as of now. Uh, but they certainly have a high growth.
They certainly are in, they are not really innovation corridor
that because you know that the cost to send a courier package, it doesn’t really vary too much
between one provider to another. You cannot be [inaudible].
So I’ve just a premium and charge more. So is the price really goes nuts.
More input and not much integration, but the growth was driven by a lot of
people actually buying things online. Therefore they need these to be lever,
you know, to homes to people and oh,
there anything beyond the company control? Uh, yes, I, I guess that delivery you, you are talking about fuel costs,
right? Your petrol and all that. Now if there is this commodity price,
the oil price increase, well that is a bad thing for these people
who are running transportation on the logistics services or even
airline. Um, but that, that is the thing, even though, uh, I mean
they can do like hedging and all that, but you know that these
are the thing that uh, I would say that there’s a factored, we say that even though how good the
combination run for transportation and logistics company, they are external
factor that’s beyond your control. So,
um, moving on to hear such by sector and uh, go do. Yeah. What else do we have?
Not Carla. Uh, we are comedies now. Utility company also.
I think you did Iti, mostly they are a monopoly
company because, um, you do not really see
like lesson Malaysia, like more than one company that can
provide electricity is only like te Naga national, right? So when it come to
this, I think the monopoly helps, uh, in terms of their revenue growth.
But however, whether they’re able to, say for example, they went to
increased electricity terrorists, I think to a certain extent they cannot
sit like that just increased like overnight. They have
to, you know, the, the, the minister or the government
or certain extent, uh, the Pam Macer power energy or something,
having sudden say to them, uh, and they have to go to Kevin that,
so it’s sort of also politically, uh, sort of, uh, not maybe direct
in diary relate that, right? Uh, whether there’s anything
beyond community control, yes. If whatever things they are using to
actually maintain the power grid and all that in the cost on that
increase, then you know, that, uh, that actually impact their top and bottom
line as well. So again, this is John, you did a company,
even though there’s a monopoly, you know that these
actually not easy business. We are talking about huge infrastructure
or were here and of course inpatient coordinator or not.
If the Kenyan creates, they can pass on the console of consumer
beef. Again the not and approval, uh, to a certain extent a policy maker. So that being said,
um, I think we’ve covered everything that
you have over here with one exception. We are talking about real
estate investments are the
reasons why I saved the best for their last because if you look
at real estate investment trust, um, whether there’s growth on the,
of course there’s growth, you’re talking about real aspect I spent
yeah cause I have a commercial property. As long as the business environment
means striving in any country, you know that there’s always a need for
commercial real estate. Uh, you know, uh, anywhere, especially in big
city. There’s growth. Yes. Inflation. You know that random is always correlated. That innovation and we are talking of
when we are talking about not residential, we were going stay. We are talking
about how much you do x, that property. That is where we are talking normally
talking about referring to a business to business, B, two B kind of transaction.
And you know that discounts on injection. Maybe if, yeah, if, let’s say you are the commercial real
estate property on as far as your tenant doing business and doing good
and pay you a lot of money, even your chassis more every month or
every year there be more willing to pay more if they keep, if they stay in these
in a hot location where the agenda, that more revenue. So the um,
positivity corridor of inflation, they have growth. Is there anything
beyond a real estate investment, trusts, control, external factor affecting
them? We maybe some light, you know, interest rate and all that,
but they have a wig. I can meet you probably quite
a capital management. Uh, they have a lot of ways to
actually say a fixed interest rate. They take these little fixed interest, the loans or they can actually raise
capital raising or equate the capital raising or even born or that you
know, uh, that financing, uh, to actually reduce the uncertainty.
So in terms of uncertainty, external factor beyond the
company concerned between that, this answered them real estate
investment trust] you know, that there’s a lot less
uncertainty that can actually affect government when
new because the one thing, so then they are not properly developed.
They are holding commercial property. Almost 90% of them is a of the revenue
for real estate investment trusts are actually rental. Okay. Po, Po rental and they come about Rental
that he’s very stable, very steady. Uh, I cannot think of any political
risks that would be affecting real estate investment trust?
Uh, not that much because no matter what we
have proven that like in Malaysia it’s 60 or more years of redeem change,
a change of government and you know, business you go on as usual. Okay.
Maybe if somebody, somebody you do bad, I mean maybe somebody sent, we will
do good, but whatever happened, you still need a place or
premise to operate our business. And when it come to real estate investment
trust, you have, right retail mall, no America, what government is it
going to take over the retail malls. I still there when I go wish government
or what policy maker, you know, if you need a buildings to actually
run your whatever operation, whether it’s government related
or public sector operation. So they are really not, not affect that political risk and
which is why if you want to start right, you want to start out about
the safest sector first, uh, to start with because you don’t want to
be traumatizing men interview you mess, just straighten your investing plantation
stocks and to model the Oil Palmpricet drop and then the company that
you invest in a price drop you, you are going to get shot and say
well this happened and this and Nakira actually it’s not.
It’s about selecting the sector. We’ve done least amount of uncertainty,
knew the best growth potential, which is positively correlated
with inflation. And then, and then you know that you will be able
to actually sustain your investment and grow it from there. Just start small and
grow it bigger and bigger from there. So I hope this, this, uh, this lesson,
I’ll give you an even more comprehensive, a review of all the sector in
Malaysia. And, and what, uh, what are the things that you should ask,
uh, you know, simply fight. Thank you. Should ask to say it before.
How [inaudible] something. Okay. Or anything. Okay. This, this mental
process. So if you like this, uh, uh, you like visa lesson, just give
you a LIKE. You know, I have question, just Sir comments below,
right? Just a comment below. And if you have any,
you know, any dopamine or just comments below
and there’s a lane, you know, this, uh, these are words that is running.
I think if you want to join, you want to maybe want to reduce their, you’ve got time to register
for upcoming web class. I’m going to conduct something
that I talk about here, but I a live webcast and you can
share more about why the safest, I say Real Estate Investment
Trust is my specialty. Uh, you may want to invest
into that. Um, and uh, basically I provide a free web class.
If you are interested, you can actually click on the
link below in the description box, our description box, and then secure
a spot just booking a place, uh, otherwise, no worries. Uh,
you always can, you know, check out this video later and you know, if your mind just for the
watch the next lesson here, then you can just click on that.
Oh, and last thing is done. Don’t forget to subscribe to this channel. Click like and hit subscribe and
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One thought on “SAFEST STOCKS 🤗 sector to invest in Bursa Malaysia?”

  1. Nice upload, can’t wait to see more videos! Did you know about followsm dot com?? I recommend using it to promote your videos!

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