Tuesday, October 21, 2014

Why Market Is Shortchanging Investors

Wouldn't it be nice if all investors in stock market could fatten up too and not the so called "zero sum" game investing terminology or jargon depend on the market up and down to get some profit or face losses along the trading life cycle?

20 years in capital market industry and still searching for a right alternative in accumulating wealth, I am wondering how can a market not shortchange investors! We all are being brainwashed on the zero sum game in capital market and are probably earning lower than inflation rate while seeing few top guns in listed companies being paid well with extravagant bonuses and shares options.

We are not jeremiad against those "excessive pay" but the yield they get and what investors have received is not well balanced. No doubt that investors can take advantage of market gains by selling off the shares to profit take or cutting losses, but why not the company simply pay higher dividends to attract and keep more investors? (Value Investing should be the main objective)

The capital market is used to raise money to grow your business from investors, but when your business has done well you have forgotten the investors? The partnerships have turned sore and those top guns may argue that their hard work should be well compensated, and should investors simply not be paid for the risks they are taking is no longer the issue for them!

While believing the zero sum game in capital market trading which had been inherited so long a go, is anyone thinking of win-win situation that can last forever by practicing the motto - never shortchanging investors while growing up your business. Don't use this well regulated platform to raise money if you fail to deliver value in the end.

Last but not least, investors must discern enough on value investing too. Investing stock is like buying a business. Buy only good stocks! Don't speculate unless you don't mind to buy high sell low.

(I am doing my best in telling the world of value investing, send this article to your friends if you think it can be a good reminder for investors)