Thursday 11 August 2016

Let's Enjoy Life as a Business Owner!

While we work hard for our employer in order to earn higher salary or bonus, wouldn't it be great if we can become business owner of certain good companies at the same time?

But wait! we only have 24 hours a day, net off the 6-8 hours of sleep and additional 8 hours of work, we might be too tired to "handle" our business.

What if your terms of employment forbid you from engaging in other businesses?

We might be earning a decent income from being an employee. But in 10 years time, are we still going to rely on our employer to make a living? or are we going to create multiple source of income from investments and hopefully, the income or cashflow generated from investments could cover our living expenses one day.

If we are keen to generate additional cashflow from investments, investing in public listed companies could be one of the solutions.

1) When you eat Maggi noodles or MILO ice cream, think of Nestle Malaysia Berhad.


2) When you pay your electricity bill, think of Tenaga Nasional Berhad (TNB).

3) When you drink Dutch Lady milk, think of Dutch Lady Berhad.

4) When you pay toll at LDP or SPRINT, think of Lingkaran Trans Kota Berhad (LITRAK)

By investing in these companies' shares, you will become the shareholder by owning a fraction of the equity ownership in these companies. Although you cannot control how these companies are being run as a minority shareholder, you could still benefit from the following:

1) If the companies make more profits and declare dividend to you, the dividend will be an additional cashflow to you. 

2) If the companies' businesses prosper in the future, the companies' share price might increase to reflect the improved profitability. 

3) You are entitled to vote in AGM or EGM to express your view and many more..

While you are consuming any products or utilizing any services in the future, always think of the company that produces or offers the products or services. Chances are you might come across a good investment opportunity.

Investing in a company's share means participating in the company's business with the expectation of sharing the profit of the company in the form of dividend and long term capital appreciation.  

Despite being a full-time employee, you could still generate extra income by investing into good quality companies!



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