KUALA LUMPUR, March 10 (Bernama) -- Bursa Malaysia rebounded to end higher today with the benchmark FBM KLCI reclaiming the 1,700 psychological level, supported by improved global sentiment after US President Donald Trump signalled a potential de-escalation of the Iran conflict, alongside Malaysia’s stronger Industrial Production Index (IPI) data. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 27.51 points, or 1.64 per cent, to 1,701.68 from yesterday’s close of 1,674.17. The benchmark index opened 10.68 points higher at 1,684.85, its lowest point today, and hit a high of 1,703.61 in the late afternoon session. Market breadth was positive, with gainers thumping losers 929 to 382. A total of 361 counters were unchanged, 982 untraded and 19 suspended. Turnover declined to 3.60 billion units worth RM3.75 billion from yesterday’s 5.52 billion units worth RM5.87 billion.
Well, if you're following the news, you'll probably disagree with this statement: IPOs are almost always a bad investment.
After all, if you bought 7-11, you're probably looking your stock at 1.61 now, from the 1.38 ringgit that was priced each in its IPO. 7-Eleven Malaysia Holdings Bhd (SEM), controlled by Malaysian tycoon, Vincent Tan is looking like a great investment, just like how Karex turn out last year. Again, if you bought IPO, you have earned some big money. So, why did I said IPOs are almost always a bad investment? Well, I didn't say it. That was a statement made by the man who earn a fortune from investment, Warren Buffet.
Buffett told Berkshire Hathaway shareholders that initial public offerings are almost always bad investments. He says there is so much hype involved that IPOs won't be the most-attractive value.
He said investors should be looking for good businesses to buy and trying to determine how those companies will fare in 10 years.
Well, a lot of people can have differing views on this. No doubt bout it, Warren Buffet missed out some big stocks like Microsoft in their boom time, Apple and then Facebook, but he was a man that made himself as one of the richest in the world from investing.
I'm not gonna say much but the key thing to take from his view is simply this:
"I think the worst mistake you can make in stocks is to buy or sell based on current headlines," Buffett said.
The man has already said his view...what about you? Still looking to buy more of 7-eleven?
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