Tuesday, February 22, 2005

My New Investment Target - Reckitt Benckiser

Have been involved in the stock market for a while. For those who do not know, a little history of my "investment story".

I got involved in investment around the year 2000 to 2001. Had some bonus and some savings and wanted to invest. That period was the tech-bubble, just before it burst.

Being the average guy and not knowing a lot about stock market and investing, I took the most-advised approach - Financial Advisor and Mutual Funds.

So I used my CPF to buy a few funds. Technology, European, Singapore, and Asia Funds. After 3 years, only about 2 made some profit, the rest made losses. And huge, especially the technology one.

Then I tried to use my CPF to buy blue chip stocks. 1 made huge loss, the other made average gains.

So, overall, I made losses.

Then I spent time to read about value investing. Glad to say, since then, my gains have recovered all the losses I have made in the beginnning.

From now onwards, I hope to gain more and make up for lost time and money.

*~*~*~*~*

Reckitt Benckiser. Most probably none of you have heard about it. But their products are abound in Singapore. Let me name a few and see if it rings any bells :

Dettol
Lysol
Air Wick
Haze
Harpic
Vanish
Fybogel
Bonjela
Veet

Find these in your house ?

I still need time to take a look at their past performance and their financial standings. But I am having a good feeling of this company. The $6 million question is then "At what price should I buy their stocks ?". Their current trading price per share in the NYSE is about $31.


That, my friend, is for you to decide and for me to find out....

Next time you like a certain product, look at the company that makes them, and see if it is a worthwhile investment. Beats listening to analysts and getting "hot tips" from friends and magazines.

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