Sunday, April 5, 2009

Share Investment Is Better Than Property Investment

I always believe that investing in shares is better than investing in properties or fixed assets. My reasons are:
1. liquidity: Shares are traded daily on stock exchanges (for example Bursa Malaysia) and they can easily be bought or sold. As for fixed assets investment, there is no 'fixed assets exchange' in any countries, even if there is, the buyers and sellers are not as many as stock exchanges.
2. Ease Of Transection: It is really cost effective to buy and sell stocks and shares. There is no lawyer required. The commission is only 0.7% (could be lower) of the stock value and stamp duty of RM5.00 based on Bursa Malaysia.
3. Ease Of Collection: Dividends are directly banked into account without hassle. Imaging that the rental incomes from the asset investment will have be collected monthly; calling, appointments, collection and banking in etc..

I understand that fixed assets investment seems more stable as there is no price quoted every day like stocks and shares. The prices of fixed assets investments tends to move slower. We don't really feel them since there is no daily quotes. However, considering the above three reasons, I would suggest that one should look into stocks and shares investment. Of course, we have to train ourselves to get use to the daily price fluctuating.

The richest man in the world, Mr. Warren Buffett created his wealth all from stocks and shares investment. If fixed assets investment is so good, why is that the top five richest men are not from fixed assets investment? Think about it.

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