Wednesday, April 15, 2015

Something nice about Boustead for the buy and forget investor

Boustead is one of those "diversified" companies in Bursa Malaysia which fits the bill as a great risk-reward company.  A great risk-reward company is a company that generally can give better returns given same risk.

In effect, Boustead essentially a company that carries risk slightly higher than insurance companies, but offers much higher potential returns.   A few of these babies is a portfolio that just is on autopilot.

It offers a very stable insurance arm which account for roughly half of profits while having a more cyclical construction area which will definitely see its booms and busts.


So where is a good place to get in at?  I'd say anywhere between RM 3.50 to RM 4 would be good at the current time.  At a few points in history, the counter does trade below its regression lines, but not too often.


0 comments:

  © Blogger template 'Minimalist G' by Ourblogtemplates.com 2008

Back to TOP