Many people say
property and share investments are sources of passive income. Well, yes and no!
No doubt, if you are a value investor that practices long term hold strategy,
you may not sell your share until 5 or 10 years later. Hence, you get dividends
and capital appreciation during the holding period, and yes that’s passive
income. However, as an investor, before we buy any investment, be it properties
or shares, we need to “actively” searching for the relevant information
available to us, and to scan for any fundamental problem for the particular
investment that we are buying, as there must be a reason why a certain
investment is too cheap.
Reports may focus on recent financials and their expected share price movements. Valuable insights are provided when analysts write about the current and future outlook for the state of the industry, based not only on financials, but on interviews with top management, a review of peer performance and macro/micro economic indicators, among other inputss.
Our stock market is very much driven by so called “investment themes”. During the covid pandemic, investment theme surrounding the health care and technology sectors took off. Now the investment theme seemed to have shifted towards vaccine and "opening up" sectors. If you have caught the right trend, you would see your portfolio shine like a diamond! Hence, we must breathe the same air as other market participants, but don’t follow the trend blindly. Stay objective and try to make decisions based on probabilities and reasons.
Hence, from today onwards, give yourself some time to read the analyst reports every week, it doesn’t matter how much you can absorbed, at least by browsing through them will give you some investment ideas.
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