Sunday, 27 March 2011

HOW and WHY to own a piece of a business?

An interesting post by Special Situation on how investing is actually owning a piece of a business. I concur, though I am in business myself. ;-)




Quote:


It's ok. I don't really care people buying follow my advice or not. I would rather think of owning a piece of business, which is managed by capable management + capital. It's very hard to start a biz, which is making enough $$$$ for you.

Just make it simple.

If Mr. Lim start a biz with RM200k, the return is RM5k/month. This biz is not something profitable after RM5k-his own salary = ??!!. Further more, how long it takes to breakeven?

I would like to see net return after minus all his salary. Investing in stock, just like buying a piece of business,which is managed by well-capable management. For some biz, it's very hard for us to start it nowadays due to high initial invested capital. But, with share, we can buy a piece of GREAT biz like Parkson.

If you're a biz, how much capital required to start a business like parkson? Will bank approve your loan?

There're many things to consider when you start a big biz like parkson. They have powerful bargain with bank. For us, it's very hard. So, just buy a piece of business better Smiley





by Special Situation
http://www.investlah.com/forum/index.php/topic,18615.msg346266.html#msg346266

No comments:

Post a Comment