The subject might sound abit deceiving especially we hear our friend tell us all the time that we can be our own business owner by joining their direct selling company or by investing in “Money Game”. Rest assure Grasshoppa. This is not a direct selling or “Money Game” investment.
If I tell you that you can Invest in Stocks with as low as RM200, do you believe me?
Yes it doesnt make any sense but its true. If you Invest in USA stocks, you are able to buy as low as 1 share. In Bursa Malaysia, your minimum purchase is 100 shares. So if your share price is at RM1 per share, you are require to pay RM100 (RM1 X 100 shares).
What Are The Other Charges That You Are Required To Pay If You Invest In Stocks
- Brokerage Fee : RM8-RM20/trade (Depending on your Investment Platform)
- Stamping Fee : RM3/trade
- Clearing Fee : 0.03% of Total Transaction Value or Maximum RM200/contract
How Does Invest In Stocks Make You The Owner Of The Company?
This is the famous quote from legendary Warren Buffett on the company ownership :
I agree with every single words in that quote. When you decide to invest in a share of a company, dont just invest in it just because its a hot tips from a friend. Dont invest base on your gut feeling. Invest only when you fully study the company from reading their Annual Financial Report, study their company quarterly financial & monitor their growth. Make comparisons with their closest competitor & study the company like how you survey for your car purchase or holiday. The more study you do, the more you know about the company.
What Benefits You Can Enjoy As Part Of The Business Owner?
- Dividend : Dividend can be considered your Return Of Investment (ROI) for investing in that company. Some companies offer dividend & some companies dont.
- Door Gift / Freebies : Some companies are giving freebies or door gift during their Annual General Meeting (AGM). I heard that Nestle have one of the best door gift for their range of product.
- Shareholders Right : Only the shareholder of the company are able to attend their company AGM. Have opinion or questions to ask during the AGM, feel free to voice it out. Best part of all, you get to vote as well.
- Smart People Run Your Business : All you have to do is to sit back relax & let the experience people run your business. They do the hard work & you earn from your investment.
Many many years back before I was introduced to stocks investment, I always think that owning a business require huge capital & experience. With stock investment, I get to invest in the company that I believe in & grow along with them. Best part of all, I dont need to have huge capital or experience to run the business. Remember, once you invest in that company, you are now part owner of the company & it is your business.