Most Malaysians, elder Chinese in particular, are very reluctant of investments. When I mention something about investment or my intention to get involved in the field, most of the people will warn me, “Investment is a ‘dirty’ business. It’s better to stay honest.”
To those people, they might think that investment is just another form of gambling. They said investment is that you guess when the price is going to hike and buy the stock in advance. Then, you just sit down and ride the wave, waiting to sell the stocks at higher prices. In other words, buying high and selling low – speculations.
I don’t meant to criticize anyone, but I am totally disagree with this perception. This is very narrow-minded indeed. Do they realize that they also indirectly got involved in investments by vesting their funds in EPF and insurance? The fund managers are just using their deposits to invest in corporations they deemed capable of making good return.
Ironically, these fund managers are rather ‘short-sighted’. I don’t mean that they overlook long term opportunities. However they are subject to performance reviews by the Trustee on a month-to-month or quarter-to-quarter basis, so their goal is to make a higher-than-average returns within the period, or at least outperform other funds in the bad times. Doing so may bypass the stocks of some companies that have high intrinsic values but does not shine at the moment. So, is it wiser to leave all your money in the hands of Fund Managers, or to invest under your own discretion?
IMHO, investment, apart from making a profit as a result of capital gain, is to support the development of certain products and services you are interested in, or you think might have a bright future and benefit the world. People always admire those successful businessmen and industrialists, but without investors, where do they get the capital?
Finally, I wish to use this opportunity to remind myself to honor others’ opinion. My opinion may differ from other people, but it’s certainly legitimate to make my own choice. And to respect others’ choices as well.