I spoke to a few people about AIN Partnership, raising a few questions regarding the Partnership. I may have answered these questions casually, so let me ‘blog’ here clearly for my future reference as well.
1) Is AIN Partnership a legitimate and registered business?
AIN Partnership is a legitimate and registered business with Suruhanjaya Syarikat Malaysia (SSM), Business Registration No. 002093548-P. The ‘Type of Business’ is stated as ‘Investment and Ownership of Stocks of Listed Company in Malaysia’.
2) What does the Partnership do?
Partners will pool their money meant for investment (not for savings purpose) into AIN Partnership to purchase and sell stocks of listed companies in Bursa Malaysia with the sole aim of earning a rate of return on its investment greater than the rate of return from the same amount of capital invested in Amanah Saham Bumiputera (ASB) fund in a given calendar year.
3) My role in the Partnership.
As the General Partner and majority partner of the Partnership, I make all decisions on the stocks the Partnership invests in. This includes analyzing the company’s financial structure, placing the buy and sell orders through a brokerage account and keeping records of our investment. Similary, I am responsible to my partners on the rate of return from the Partnership’s investment in Malaysian stocks (see above paragraph).
4) Why invest on your own? Why not just give your money to ASB/unit trusts and let them invest it for you? Or why not Swisscash/cicak tokek (gecko)/gold investment and get rich in a very short time, buy a BMW 3 Series and go holiday in Australia?
Reason is because I believe that stocks investment represents a wonderful chance to grow your money at a greater rate of return than most readily available investment instruments around us. A right company’s stock at a right price and a right time will turn your money many times over positively, letting you sleep well at night knowing the money you make now, will grow and help you live a comfortable life in the future. Some people can get rich from their ventures in what I listed in the question, but I firmly believe in stocks investment and I intend to do well in it with my partners to achieve that greater return.
5) But stocks are risky, and the price can go up and down.
Yes indeed. But how can one reduce the riskyness? There are plenty of essays/writeups on the Internet about risk but allow me to make it simple at least from my point of view - if you know what you are investing in, why invest in it, and how do you invest in it, then you have made the risk look like a tame, cute kitten that roars at you but you know very well how to hold it by its neck and place it back in the cage. (The kitten will grow and be fond at scratching you but by then you already know how to cut their nails)
A stock price fluctuates up and down, that’s a certain. Your action as an investor is to simply look at stock price fluctuations like someone who knows very well the taste of McDonald’s Prosperity Burger and desires it, waited every year to buy it everytime Chinese New Year is near, but clever enough to buy the McValue Meal only from 12pm to 3pm any day because the price is cheapest at that time.
6) Does the Partnership guarantees positive return to its partners?
No, the Partnership does not guarantee any returns (positive or negative) to the partners nor does it provide capital guarantees. But what the partners are guaranteed of is the fact I will continue to have a substantial stake in the Partnership and I seek to preserve the initial capital provided by all partners before earning any return on it. I dislike losing money to stupid investment decisions, like everyone else too.
Dare I point out that if one is eager and joyous to see 15-20% returns on their stocks but worry and will lose sleep at the sight of losing 15-20% from stocks although their analysis, reasoning and the company is still right, then one must not invest their hard-earned money in stocks directly. To this investor, ASB is the best because they provide capital guarantees and a decent dividend return of 7-8% for the past few years consistently.
Dare I point out that if one is eager and joyous to see 15-20% returns on their stocks but worry and will lose sleep at the sight of losing 15-20% from stocks although their analysis, reasoning and the company is still right, then one must not invest their hard-earned money in stocks directly. To this investor, ASB is the best because they provide capital guarantees and a decent dividend return of 7-8% for the past few years consistently.
Well said & well written. Nice.
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