Monday, February 11, 2008

Kicking Off

"Kick off" is the buzzword that investment bankers, lawyers, accountants, other relevant advisers and not forgetting the companies themselves, use to signify the beginning of most corporate exercises. During a "Kick off" meeting, investment bankers essentially tell their clients "Hey look. We are darn serious about billing you the fat fees that we are supposed to earn from this simple transaction in which you will see how we complicate it through our advices. So, let's get started with this boring meeting and our legal adviser will bring you through this stack of legal document where you will see how scary the penalties are, if you try to be funny by hiding information or doze off during subsequent meetings. We call it the due diligence planning memorandum."

Abit of a side track of how advisers and their clients kick start corporate exercises, at least formally. What I would like to say to "Kick off" my blog is simply that I will be sharing investment decisions that I will take on a long term basis to achieve my first million worth of assets. I believe there are many out there who aspire to build their first million too. No intention of being an expert or make investment recommendations here. Being a keen follower of Warren Buffett and Peter Lynch, I believe in fundamental investing. My objective is to apply these principles in making my first million. Various other principles and strategies will also be adopted and they are by no means ideas of mine but more of applying and testing them.

I do not have rich family background and earn my income through employment. Without going into debate on how to maximise income through other sources, I would like to concentrate on achieving the first million through constant allocation of monthly income for investment purposes. Although I may not be residing in Malaysia, I am particularly interested in the asset classes in Malaysia. Many friends warn that fundamental investing in Bursa Malaysia holds no water as it is a market full of speculators. Being a contrarian at heart, I choose to believe otherwise. Not for the sake of going against common beliefs but I do believe that Malaysia has alot of potential and the presence of speculators is seen as a good element in stock market as they will overvalue and undervalue stocks through greed and fear. That is when fundamental investor takes opportunity by buying undervalued stocks and of course, selling overvalued stocks. Another class of asset that I am particularly interested in is the property sector. Coupled with other available asset classes like gold, mutual funds and structured products alike, I will try to take a hit in achieving the first million, the D-I-Y style.

Lastly, before any naive readers make losses by using the information in this blog, I would like to ring fence my a**hole by quoting a disclaimer which read "The information and views expressed herin are the author's personal interpretations and thoughts and in no event should be taken as investment recommendations. The author will not be responsible for any losses incurred by adopting and/or using the information disclosed herein. Supportive comments are widely encouraged though if profits are made by adopting and/or using the information disclosed herein.

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