Invest: Going Local, Investing Regional

Some years back I floated the idea of investing through regional via local methods.

This is a personal experience with investing through low costs.

Know what to invest

This would remind me of the phrase “begin with the end in mind”. If your goal is to create a secondary income stream Long term, you have to decide what works best for you. Be it stocks, bonds or unit trusts and even precious metals. These are asset classes which are light and easy to liquidate. Whereas if you are into real estate, there is a risk of illiquidity when you need to cash and it takes time to liquidate.

Having a plan in mind

Bearing the above in mind, the next is a strategy and plan. Just like how I use to enjoy playing “age of empires” and “zoo tycoon”. These are strategy games, so you need to know what you want and practice makes perfect. Given any scenario you can think of, using the free tools available to backward test your strategy helps you determine if the portfolio you are creating is weather proof.

Using the resources available

This brings me to the point in available resources. These are some of the tools which are readily available and I personally use them. For a comprehensive list of web resources – click here.

A information source which I use often in gathering in-depth knowledge will be simplywall.st; they offer insightful pictorial and analytics into stock value and growth potential which might aid you in understanding what to invest. They have a rather extensive global reach in terms of data for the stocks market.

Checking out the companies to invest

This is something unique to my own investment style. I prefer to see what I wish to own. It is just now online shopping, except that you are shopping for Long term investment.

So do your due diligence to check the company website and visit their businesses that you wish to invest in. Also their stock and corporate action history from the brokerage website helps to ascertain if it is a good investment. Do not entirely rely on brokerage recommendation as there is possibility of bias. Though the risk of bias is low, but certainly I believe these reports sometimes spurs market speculations unless it is base on facts and news reports.

All set to go ahead

Now that you know what to invest in, the next step will be to start by creating a brokerage account – local or foreign, understand the fees and start investing.

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