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:
Post a Comment