Wednesday, January 25, 2012

investing with the water dragon

Well, there's really nothing that will change with my investment decisions now that we've entered a new lunar year, and you should not either. Its funny how some people associate the arrival of a new animal sign with predictions of where or how we should invest. Rational thinking should prevail my fellow investors. For instance, would Manila Water (PSE: MWC) be a good stock to buy because it is involved with water or would a beachside property be excellent because it also has to do with water? Not that either of these two are bad, MWC has solid earnings and people would always pay their bills, it also has the backing of Ayala Corp., a large conglomerate with good management record. And who wouldn't want to relax in your own private beach house. The fact is that these two would be good investments whether it be the year of the pig, dog or dragon as long as you do your research before investing.

A second point I would like to highlight is the propensity of the Chinese to succeed in business. I am 100% certain that it has nothing to do with their practice of lighting firecrackers to welcome the year, nor the use of lucky charms. It has everything to do with their amazing drive to grow their business, their thrift and hard work. No amount of luck can compensate for such attributes. If you ask Henry Sy, Lucio Tan or John Gokongwei what their secret to financial success is, they would pretty much give the same answer and that its not really a big secret after all.

Wishing you all the best in the year of the dragon. Happy investing!

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