The Perilous Plight of Start-Ups

Investing in Start-Ups is a risky move, yet if successful it pays off handsomely. Often, a Start-Up seeks initial funding from VCs before going public through IPO.   It is generally understood that 9 out of 10 Start-Ups fail for various reasons. This happens to even most advanced economies. Source: DemandSage Source: Failory   Why VC’s (Venture Capitals) Early phase growth of ...

Read More

Mutual Funds in 2022

Year 2022 commenced with high expectation in the equity market. The pandemic was about to subside, demand was about to rebound.   Midway through 2022, the expectation turned sour, due to inflation and geopolitical situation.   AUM and Investor Growth More Investors joined the Mutual Funds, jumping by 40% within a year. Source: KSEI   Despite the encouraging growth in Investor number, unfortunately ...

Read More

Opportunity Cost

Opportunity cost occurs in almost every facet of life. It is inevitable.   In investment domain, opting for an investment asset (A) over another asset (B) means not getting any money from that other asset (B). It is a missed opportunity.     Quantifying the Opportunity Cost (OC) Opportunity Cost is not the same for every single Investor, depending on their ...

Read More

Between a Valley and a Canyon

A Valley and a Canyon have similarity in the sense that both are declines of landscape. The difference? One (Canyon) is steeper and deeper than the other one (Valley). Almost everyone agrees that the market is in the state of decline. The question is how deep it will be. Window Dressing December has been recognized as the time ...

Read More

Stronghold of Dividend Stocks

Global stock market has been in bearish mode for months. There is little sign of recovery.    Despite the downturn, there is some comfort in Dividend Stocks. So why are they so appealing amid recession fear?   1. Proven business model The strength of a company’s business model is tested through crisis. Some of these Companies have existed for decades ...

Read More

Tailwinds for Exports

Compared to other emerging economies’ currencies, the IDR has not weakened as much against the USD. source: Nikkei Asia On the bright side, a weakening local currency tends to improve profitability of Exporters. So, which exporting Companies might be the beneficiaries? Take WOOD for instance. Foreign exchange gain alone pushed up its profits by IDR 34 billion in ...

Read More

Property and Inflation

Inflationary pressure impacts on nearly everything. Property is no exception.   1.   Construction Cost Construction cost varies among cities / towns. It is felt most in the capital province (DKI Jakarta), where the cost is the third highest in the country. source: bps.go.id     Doubling of steel price between 2020 to early 2022 (in addition to other materials cost such ...

Read More