We are now operating in unprecedented times. The global and local economies have been impacted significantly and, most importantly, you and your family are experiencing this crisis. However, now is not the time to put the funds under your mattress and shy away from investments. There is always an opportunity in every crisis and COVID-19 is no exception.
This principle is emphasized by investment guru Warren Buffett, who once said, “the stock market is a device for transferring money from the impatient to the patient.” Now is an opportune time to invest in the market, as there are some good assets with strong fundamentals trading at discounted prices. In other words, as Christopher Browne would say, “buy stocks like you would groceries: when they are on sale.”
Although there are no one-size-fits-all solutions when it comes to looking at the market for investment opportunities, here are some core principles to stick by when considering a company for your portfolio:
- Carefully review the company’s fundamentals: cash flow, financial performance, business strategy of the company, and corporate polices
- Be guided by expert advice from your financial advisor before making decisions
- View investing as a long-term approach for building wealth based on your goals
There are also other investment options to consider, such as Unit Trusts. A Unit Trust is a pooled investment fund, managed by a fund manager that allows for diversification. Unit Trusts also have the added benefit of having a fund manager to make key investment decisions. This saves you from the daily monitoring of the assets in the fund. Consult your Wealth Advisor to figure out which of the Unit Trust products or other investment opportunities fit your risk appetite.
Article authored by:
VM Wealth Management