An investment is a means to generate Wealth. And Wealth comes after Well-Being, not the other way around. 

Here are 3 basic tips when choosing shares to invest:

• Optimizing, not Maximizing

External factor (e.g. market risk, recession) is very much detrimental to movement in investment value.

An Investor should always be prepared for a downturn, which might mean having spare cash to procure basic needs (food and others), pay mortgage loan, etc. Also, sometimes an Investor can discover good value in an equity (e.g. mining shares) during the downturn.

• Diversification

As the saying goes, ‘do not put your eggs in one basket’. Diversification lowers risk and improves liquidity.

An Investor should not regret decision to diversify; it is normal and acceptable that not all equities will give positive return over time.

• Environmentally and Socially Responsible

Being environmentally and socially responsible does not mean giving away all of Investor’s wealth.

An Investor can choose from many options, such as:

• Invest in Companies (shares) that gives back to society, or manage its waste responsibly.
• Source equity financing from banks (financial institutions) that act responsibly to their customers and society.
• Invest in Properties with sustainable ecosystem design