Compilation List : Lowering the Risk

Being An Investor
Lowering the Risk


Previously, we talked about High Risk High Return, but it takes luck to do that as high risk is actually not high return, if it is, everyone would choose the high risk. While, the most promising way is that one may wish to lower the risk and higher the return. In this respect, I have made a compilation list of companies which includes fields such as current ratio, achieve net profits, fast cash flow and so on, for easy grasp the information of the status of the respective corporates.

You may Download Company Compilation List

Firstly:
There is no 100% return in the investment without involving risk. We all might lose. Agree?
But, losing money = risk? What are the risk and ever thought of lowering the risk?

First Step : Simplify the basic information
What type of company we are interested? What are the basic information?
- good profit? with gross profit margin above 10%?
- yearly paying dividend?
- able to make payment?
- able to cover borrowings at all time?
- Gross profit Margin and achieve Net Profit through out the year?
- Industry that we are familiar with?

Click youtube below to see how it's done. Choose highest quality. Thanks.





Corporate just won't close their operation so soon even with many negatives figures, low profits or many negative news from the ratio or from the accounting figures. It's just a balloon press here and there until 1 second it's burst with so many hours or years never burst.

If we have seen something like this, given 3 types of corporates for example,
a) need millions ways to reduce it's risk
b) need hundred ways to reduce it's risk
c) need few ways to reduce it's risk

We might know which corporate company is the easiest to handle and giving time, they would solve their risk on hand. In other words, by investing into their corporate is simply investing their risk into our hand.

Choosing the companies with few risk is wiser than choosing companies with more risk, and how much money do we have at this moment.

Try this,
Yeap I do agree with the current ratio, profit margin and many other figures depends on the industry.

a) Finding story of current ratio lower than 1.00 seems tougher finding story of current ratio over than 2.00

b) Finding story of gross profit margin is 1% looks tougher than finding gross profit margin of 30%

c) Finding story of gross profit margin is 90% above looks ridiculous than finding gross profit margin of 30%
 

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