by Helmi Hakim | Apr 9, 2008 | Investment
I have clients who tell me,it is better to buy a penny stock than a blue chip because it is CHEAPER.
Example you have $1000 to invest.
The penny stock you have been eyeing cost $0.10 each.
…. and another one, a blue chip cost $50 each.
With $1000, you can buy 10,000 penny stocks.
With $1000, you can buy ONLY 20 blue chips.
So their rationale is its better to buy penny stocks, because it is CHEAP and you can buy more because of that.
Blue chips are too EXPENSIVE.
So….Which is better, blue chip or penny stock?
The holistic truth is that the price of the shares DOES NOT matter.
What really matters is the potential percentage increase in the price, which depends on variables like
-the profits that the company makes
-market sentiments of the development of the company etc2.
Lets assume the above example again.
Assuming both companies are equally strong and enjoy 20% increase in price.
The total value of the PENNY STOCKS will increase to (10,000 X $0.12) =$1200
whereas the total value of the BLUE CHIPS will also increase to (20 X $60) = $1200
So you see… The price of the stocks doesnt makes the difference.
Both investments make the profit! 🙂
by Helmi Hakim | Mar 23, 2008 | Investment
There is this theory known as “Parkinson’s Law“.
In the context of finance, it means “the more you EARN, the more you will SPEND“.
Many of us were illusioned with this myth, “If this person is a director of a company, this person is a big shot, this person is running his own business…. this person must be filthy RICH!
This person, for sure, have LOTS and lots of money.”
My humble experience as a financial associate tell me otherwise.
The MORE the person earns, the HIGHER his expenses will be.
Come on…. Lets face it!
……………………………………………………………………………………………………………………………………………
” Usually when we are earning $3000/mth, we will have a normal house, a normal car, eat in normal restaurants and go holiday in nearby countries.
However, when our earnings grew, say $5000/mth, without us knowing, we will then get a bigger house, a more sporty car, eat at expensive restaurants and travel futher.”
………………………………………………………………………………………………………………………………………….
This is what we called Parkinson’s Law.
This theory does not only happen to other people.
I am guilty of it too! 🙁
Dont feel syiok good right, earn so much, yet spend so little. 😛
So… What can we do, to counter and avoid being a victim of Parkinson’s Law?
Financial advisors across the board have always emphasize in savings at least 10% of your income.
You must always remember, when your income increases, your savings should also increase too, to avoid Parkinson’s Law.
Maybe when you earned $3000, you save $300 (10%).
However, when your income increases to $5000, your savings should not remained at 10%.
Increase it to 20% ($1000).
With this method, you still can enjoy your increment in your income without feeling guilty ($4000), and you still be able to save more and fight Parkinson’s law ($1000) at its root! 🙂
by Helmi Hakim | Mar 20, 2008 | Miscellaneous
Okay…
Ladies and gentlemen….behold….
Take a deep breath…and cast upon your eyes to this logo.
(Click on the logo to have a clearer picture)
Okay…
Let me explain the meaning behind this logo.
1) Color
I choose the color red and blue for my logo because it is the same colour with the organisation that I am in now, NTUC Income Cooperative.
2) Shield with a red medical cross on it
The shield signifies PROTECTION.
Everyone needs protection, in terms of Health Insurance for hospitalisation and Whole Life Insurance to cover Death, Permanent Disability or 30 Critical Illnesses.
3) Zig Zag Chart going up
This signifies my commitment to ensure that my clients get the best value for every single dollar entrust to me for savings or investments to meet their financial objectives.
I will embed the logo on my shirt which I will wear every single day.
That will be my personal branding to differentiate myself with the rest of the financial advisors in the whole of Singapore.
Pray for my success. Amin! 🙂
by Helmi Hakim | Mar 16, 2008 | Miscellaneous
Some of my friends asked me, “How do you get so many clients attracted to you?”
“What are your SECRETS that make them attracted to get the financial instruments from you?”
“You make it look so easy…”
‘Come and share lei…”
Let me clear the doubts once and for all.
I have no secrets.
Its all about hard work, and hard work.
Yes…
Its all hard work.
Pure sweat and energy.
I faced lots of rejections every single day. 🙁
I create appointments with many, and lots of them postponed at the very last minute.
I guess, after all its all about trust.
Its all about the relationship that you mould and build with your clients subsequently.
Build up your credibility, go for courses to enhance your competency on financial planning and always keep in touch with your clients.
I leverage this blog to keep in touch with all my clients and also as a mean to share quality information with the public.
Just to clear the air again, no SECRETS ya!
by Helmi Hakim | Mar 14, 2008 | Miscellaneous
I will like to thank all those who have participate in the logo design decision making… 🙂
I have decided how the logo design should look like.
We’ll wait for my designers to edit it and I will post it for your personal viewing.
The logo will be full of meaning and I will tell you why I choose it, when it’s ready.
Meanwhile, I delay my post for a few days, because I am working very, very hard on something.
Yes…I am getting the industry experts to verify “the secret”…
I gather feedbacks to improve “the secret”….
and also testimonials for “the secret”…
I CHOOSE not to reveal “the secret” as yet…
Let me give you a glimpse of the SECRET…
… to increase your suspense…. 😛
For those whom have posted your ideas in the previous posts, I will be honoured to email you the secret tomorrow.
Check your inbox.
The SECRET will be unleashed….SOON! 🙂
