QUOTE(junekaede @ Feb 27 2010, 07:05 PM)
Sorry, a little out of topic I guess.
People....I told my dad that I wanted to invest like few years back, but then he do not support me. That time I was still studying.
Then now, I started working already, I plan to use my own money to invest. i told him again recently and he disagree again saying that all those are craps and why are we investing on some other company's shares which you do not actually know them well.
I told him that I will definitely read those reports and analyse before I start to choose which to invest and he mentioned that all those reports are barely numbers created ONLY.
Whats you guys opinion on this?
Number can be played around, but hard cold cash in the form of dividend is not. You cannot fake cash.
I know profit number something can be boost up, from various points, but cash cannot. So in term of reading the financial report, cashflow is the one is the priority to look at, not profit.
Company can survive without profit, but company cannot survive without cash.
So if the company is able to give dividend from its profit and cashflow made, then it just sums up (99%) it is real.
Yes, any financial report can be made up, which is not something new. But it represent a small portion of it. We don't sink the whole boat just because a few in the boat has bad record. To say everything is created number is too much or exaggerated, no offence. As if like that, everything is society is made up number, or fake one.
Sincerity and looking after shareholder and corporate governance is the most important when invest in listing company as minority shareholders. That's why some old head or experience investors only invest in some stocks they are very familiar and which they know the company is always looking after shareholder benefit. The most important is to know the company, instead merely looking xyz company share that is Rm 0.xx, and buying based on the name and price, without proper studying.
One of the basic form of looking after shareholder benefit is always sharing the profit in term of dividend. That's my basic view, which is more about personal preference.