You may have notice the advancement of technology that eventually reduce the possibility of hiring someone to do the job. We are now even venturing to have a driverless car which back in the years, i still remember that my instructor told me that it would not be possible. I would say nothing is possible now as we can eventual replace robots to assist us in our daily lives and even to our job. Best thing is, they are able to work 24/7. Recently, i notice there is a technology that would be able to translate the person language through a earpiece that is plug to their ear. The earpiece will translate the foreign language to English or vice versa. Essentially, this reduce the demand of translator. More jobs are now replaceable. So, will this be the end of humans doing certain jobs?
I would say high possibility.
This would be possible when we have good quality education that makes everyone being able to understand things easily. Back to the financial and real estate industry, many of us would be familiar with most of the investment products that it can tell you the content of it without getting a representative. If you are very familiar with the financial sector, you would probably hear the same product being introduce by the representative agent from various companies. You would know that majority of them might preach to you without them really understand the product. Similarly for real estate sector, probably they would treat you before preaching on their product. So what do you as a potential investor on purchasing the investment product? You would prefer to do your own research and purchase it directly instead. You do not see them as really adding value to their intention to purchase it.
There are now apps or website that can offer you to do the transaction without getting any representative. So will this be the end of the career in this sector or probably lower their potential income? I would say there will not be complete removal of those jobs. Reasons? The type of business in their job plays with the humans emotions. Simply to say that humans prefer to be served and be well treated. If they play it right with their potential prospect, they got the deal. But in this instance, it would be a tough job for them. It would not be an instant deal anymore. It requires alot of time and effort because their customers would want them to follow their schedule to meet up. As you know customer would always use the same sentence: "Then why would i buy from you and give you the commission?"
This is very very common in this industry. It is a matter of how you handle them. I would say the era of earning big buck may slowly reduce which is similar to being Remisier. It used to be the one of the good jobs to earn money but as technology overtake them, traders or investors can trade at their own convenience. So i would suggest for whatever job you currently holding on to, please do something with your money. Let the money work hard for you. Sometime, certain jobs may become obsolete as technology takeover. This is an era where humans requires to keep upgrading their skills to ensure they are still in demand in the working world. Indeed, the word "lazy" should not be inside your personal goal.
LET THE MONEY WORK FOR YOU, NOT YOU WORK FOR THE MONEY THROUGHOUT YOUR LIFE.
Cheers!
Sunday, October 23, 2016
Assessing public listed company financial health status
Stocks. One of the most risky investment especially when you are the common stockholders. It would be a nightmare for them if the company declare bankrupt. This is the concern of long term investors hoping to have capital gain as well as incremental dividend. It would be a bonus that the company can issue a consistent dividend flow to their shareholders. So how do you determine the financial performance of the company? Majority of investors would generally access the company that they have invested through the financial report. Interestingly, the report will show the company financial performance, the future plans and what is their projected earning in the next one or two years. It seems that the company could still stay afloat or been performing. If the investors are financially savvy enough, they would not just access the company through the "surface" information. They would know that numbers shown in the financial reports can be "polish" to look promising before inputing the numbers to the various equation.
Generally, investors would access further information through their own findings. For example, if you are holding REITS stock that has various ownership of buildings locally. You can monitor yourself on the frequency of the crowd during the weekdays and weekends. Similarly, news that relates to the stocks would be important too. These are some of the things you can consider in doing your own assessment and decision. I notice that blue chip companies are also not being spared from the volatility of the market. BUT, it would normally have "some entities" that would acquire them. So what are the other factors that can contribute to the failure of the company financial performance?
1) Poor management - The incapability in determine the importance of each of the department contribution which could affect the daily operation of the business.
2) Political issue - Certain regulation that was being set may restrict the company full potential to bring in more revenue for the interest of the investors.
3) Foreign exchange risk - This could be the investment made by the company or the company main based was overseas which affect the value of the dividend.
4) High debt - Debt would be good for the company if it has a successful project within the stipulated amount. Failure of the capability to make payment to the bondholders, would trigger a great concern to common stockholders.
5) Foreign based company - It would be the shareholders due diligence to understand the foreign policy and the status of the company economy performance. It can contribute the company performance.
In conclusion, It would be good for you as a common shareholder to understand the importance of knowing what you have invested. Share your thoughts with others who have invested their money in investment products. They would normally have some form of tips or advice which would help you further understand the world of investment.
Cheers!
Generally, investors would access further information through their own findings. For example, if you are holding REITS stock that has various ownership of buildings locally. You can monitor yourself on the frequency of the crowd during the weekdays and weekends. Similarly, news that relates to the stocks would be important too. These are some of the things you can consider in doing your own assessment and decision. I notice that blue chip companies are also not being spared from the volatility of the market. BUT, it would normally have "some entities" that would acquire them. So what are the other factors that can contribute to the failure of the company financial performance?
1) Poor management - The incapability in determine the importance of each of the department contribution which could affect the daily operation of the business.
2) Political issue - Certain regulation that was being set may restrict the company full potential to bring in more revenue for the interest of the investors.
3) Foreign exchange risk - This could be the investment made by the company or the company main based was overseas which affect the value of the dividend.
4) High debt - Debt would be good for the company if it has a successful project within the stipulated amount. Failure of the capability to make payment to the bondholders, would trigger a great concern to common stockholders.
5) Foreign based company - It would be the shareholders due diligence to understand the foreign policy and the status of the company economy performance. It can contribute the company performance.
In conclusion, It would be good for you as a common shareholder to understand the importance of knowing what you have invested. Share your thoughts with others who have invested their money in investment products. They would normally have some form of tips or advice which would help you further understand the world of investment.
Cheers!
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