Why Invest In Equities

Some people think the stock market is risky because the prices go up and down every minute. People who avoid investing in the stock market are missing out on the big gains from this asset class.

Compare your net worth with when you first started work. You are richer today after converting your finite working hours into what you have on your balance sheet. The same goes for companies. A few may go bust, but on an aggregate basis, most companies are a bit better off than before.

The risk of investing into stock market can be reduced by following our stringent criterias:
• Stewardship
• Bottom up
• Long term
• Quality companies
• Sustainable and predictable growth
• Valuation disciplines

If you have bought the following stocks 5 years ago (since Oct 2012), you would have achieved the following performance:
• Walt Disney: 204%
• Nike: 245%
• Starbucks: 245%
• Berkshire Hathaway: 208%
• Alphabet: 305%
• Amgen: 191%
• Comcast: 197%
• Celgene: 277%
• Facebook: 792%

How about Singapore context during the same period?
• DBS: 66%
• OCBC: 26%
• UOB: 36%
(Dividend not included)

Though past performance is not indicative of future performance, past performance gives us a preview of what the management is capable of.

There may be casualties in individual stocks from time to time but overall a portfolio does its job of growing investors' net worth.

In the long term almost everyone is better off. Short term movement dont make the stock market.

Clients can further reduce their risk by investing into fixed coupon note or bonus enhanced note whereby strike price is at or lower than 95%.