KUALA LUMPUR, June 18 (Bernama) -- Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday's close of 1,709.99. The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session. Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended. Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.
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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