Hi folks, I’d like to get some solid opinion/advice from anyone out there regarding investment. I am a rookie/noob/kid
Quick Background:
I’m indian-Taiwanese. Taiwanese Passport. Work in the Nangang Area for a Medical Device firm. Have an account with “Mega Bank” (Local).
So I reached 100k NT$ in savings today. :discodance: When Nan passed away (R.I.P) she gave me 1 mil.
I’m looking for investment options as its just money in the bank doing nothing. If you can recommend some reading to further my knowledge, it would be much appreciated. So far, I’ve only read Freakonomics… and the occasional Financial Times/wall street Journal but I don’t get half of what they say.
To start off,
Is it too early to consider investment options?
Should I just save up for the time-being?
Is there a go to guy who helps you invest in bonds, shares, e.t.c.
Can you invest in foreign companies from Taiwan?
I can’t read Chinese for ****. Will this be a problem?
I haven’t got a clue about the markets, foreign currency e.t.c so please try to simplify your advice/opinion.
Thank you all in advance. Just a guy trying to increase his meagre dough
Khan Academy has free online courses on the basics of investing and finances. It should give you a reasonable base (I haven’t used them, but the courses I have taken though that site have all been pretty good).
Being serious though, in Taiwan, can you go to a bank and buy portfolios or bonds? if that is possible I guess it would make this endeavor easier.[/quote]
Yeah, when I was in England, I gave about 10,000£ to a bank guy after I opened my bank Acc. Although I couldn’t touch it at all, after 3 years at the end of uni. I got back 12-13,000£ whilst at the same time 20-50£/month during those 3 years. Varying i think because of how well he did. He said my investment was in the (medium risk bracket)
Something about a mixture of ISA’s and Bonds. All I said was am I gonna get more money? He said, well yeah depends how I do but i’ll try my best. And so we got a beer.
So is there something like that in Taiwan? I’m not sure what the right term for it is.
Indiands sure love their gold don’t they. Not an avid fan though. But the Booze
I hate to say it, but retail investments are risky, perhaps more risky than other kind of investing. Why? Because you’re paying retail prices for everything, you’ll be dinged by up front commissions, and with the stock market at a shaky high, putting money to work now in any of the Blue Chips/ETFs might lead to immediate losses.
I’d suggestion: make sure you have enough cash in the bank for emergencies, then look for ways to leverage what you know not your cash. In other words, take advantage of your background, and see if you can’t find a way to ‘invest’ in things you really do know.
If you don’t mind currency risk, you can open a TD Ameritrade account and invest the money in fee-free ETFs. These are good because:
-If you don’t know what you are doing, you should buy the market (buy over time to dollar cost average)
-Fees are bad, and only make the bank richer, not you.
If you don’t do this, just remember to avoid bank fees at all costs. They are designed to separate people from money and all financial literature shows that they don’t make you richer.
Open a US trading account, stick it all in Tesla motors , you are young and if you lose it no big deal. If it works out you will have a very tidy nest egg. *This advice is not from a professional investment adviser
What about the RMB? Hearing alot of hype about it
Thanks for the advice
My friend visited the exhibition at Barcelona where Tesla displayed a smartphone prototype that was years ahead of the curretn smartphone market. Problem is, how/when are they going to mass-market it? But yes I’ll defo look into that. Are they only in the U.S?
Emm, this is a medium to long term bet as Tesla are just starting out but they only need to seek 40,000 cars worldwide per year within the next two years and their stock will double or triple. Their order book will easily get to that between the US and Europe. Analysts and many investors are stuck looking at gross margin on the cars and they trade in and out short term. It’s a risk but a calculated one.
Emm, this is a medium to long term bet as Tesla are just starting out but they only need to seek 40,000 cars worldwide per year within the next two years and their stock will double or triple. Their order book will easily get to that between the US and Europe. Analysts and many investors are stuck looking at gross margin on the cars and they trade in and out short term. It’s a risk but a calculated one.
I would strongly advise you to avoid the RMB unless you have bills due in RMB.
Also, if the reason you are choosing an investment contains the word “hype”, consider why there is so much hype. Generally, the reason for hype is that smart money and early investors want to bail on the position.
[quote=“hs172”]
My friend visited the exhibition at Barcelona where Tesla displayed a smartphone prototype that was years ahead of the curretn smartphone market. Problem is, how/when are they going to mass-market it? But yes I’ll defo look into that. Are they only in the U.S?[/quote]
Don’t invest money in a company that’s losing money. Especially a startup car company.
Well it’s all risk vs reward. If you invest in many of the big stocks in the US now there’s not much upside left. They are already through the start-up phase which is a massive achievement, now it is the real make or break phase.
Think about it. 20,000 to be sold in 2013 (they have the orders and shipping on schedule), 40,000 cars to be sold in 2014 (to reach targets), new models launching in 2014 and with a lead on the future.
Do you know how many cars are sold every year around the world?
Although it sounds like wishful thinking the infrastructure for electric cars is growing quickly, especially in Europe.
Well it’s all risk vs reward. If you invest in many of the big stocks in the US now there’s not much upside left. They are already through the start-up phase which is a massive achievement, now it is the real make or break phase.[/quote]
There’s not many bargains to be had now, true. But that’s an incredibly bad reason to chase high-risk investments with money.
In Tesla’s case, they are through the startup phase, but at the rate their costs are scaling, they need to multiply their sales by a factor of around 2-3x just to keep heads above water, or 5-10x to justify a huge valuation. They have a small dealer network and constrained supplies, so I would err on the “they are probably not going to meaningfully change anytime soon” side. Maybe in another 5 years they will, but by then maybe your equity is heavily diluted.
Indeed. I think the poster might be more suited for dividend paying stocks well-known, blue chip companies. If he can open up a US brokerage account, here are a few off-hand that are reasonable:
ConocoPhillips (COP)- Dividend yield: 4.18%
AT&T (T) - Dividend: 4.81%, 21.1x earnings vs. historical P/E of 18.7. A bit pricey…
Air Products & Chemicals (APD) - Dividend: 3.01%, 17.1x earnings vs historical price to earnings of 16.7
BHP BIlliton (BHP) - Dividend: 3.37%
Finding ways to build wealth can be challenging, especially for us expats. I think the following could work right now for someone willing to own a piece of these business for the long term, especially the top three.
Whatever man. Im giving the guy free advice that could have made him good coin and Im rude?
Nothing lucky about this one, I put the rationale down in words months ago, there was always a risk but risk reward in this case was too good to be true. For a small amount of money like 100k it’s not very useful to stick it in already over valued stocks.
Apart from that, you didn’t read the OPs post properly. He’s not American, therefore he would have to pay 30% tax on dividends! That makes a massive difference in his earning potential.
But yes I’ll defo look into that. Are they only in the U.S?
Sorry. It was Tegra