Macro Stock Investmentsunderstanding Macro Investmentsstock Investments

‘Every Single Cent You Put As An Investment Should Be Targeted On A Higher Return’

It is my theme in life on investment and once you make an investment you have to keep an eye on how it grows and to earn the best return at the correct time. Also, if your investment doesn’t return you higher yield, you have to use your investment until it supports you throughout your life, and until that investment finally become totally incapable and vanish so that at least you had got the maximum return from it. 

Starting from 1987 and to date In an around my time we saw many booms,crashes and crisis in the world and its economy; every boom,every crash,every crisis has its own potential to gain higher Return On Investment (ROI) and we have to be vigilant,analytical and intelligent on making everyone of them an opportunity where we can achieve optimistic financial gains.

Macro point of a view and diversified investment is always the best at all times as it is the possible way to earn and gain higher Return On Investment (ROI) percentage at all moments of life.

Investment is about Cash Creation

Money is the primary driver in our globe, universe and global and universal economy and everyone do invest to maximize their cash. Every investor is creating cash in his or her portfolio and investment is all about creating wealth and cash. It is starting from Zero and then achieving the Power of One!Everything at Every single second has a Value. 

If you don’t have Cash start investing in Human Capital

If you don’t have money to invest you have to find money and to find money you have to search where the money is available, then you have to find a way to get some of that money for you to build up your own investment portfolio. That is where the human capital investment is coming in to effect. When you are a zero valued investor you have to start investing in humans and the emotions, hearts and minds of people around the world to get a portion of money in return by sometimes putting your time, efficiency, work force, verbal communication, emotional intelligence, knowledge and wisdom and there you will have to risk long hours and real time riskier situations in life. But remember to always calculate your risks and return on your own way before taking a risk and try to find other opportunities that rise after investing in human capital.

That is where the Macro Investment Strategy comes in to play in the beginning.

Every single cent in your portfolio has a value and never lose them for nothing. 

Remember ‘Nothing is Nothing for Nothing’ and try to make ‘Something and Anything for Everything’ and finally ‘Everything is Everything for Everything’

Every Sector is important to a Macro Investor and Information we gather which is supported by all sorts of sources and all sorts of point of views is crucial at this era of investment where we are dependent and ridden by information. 

Coming from an emerging city in an emerging country in the world while born in 20th Century and living in 21st Century My Strategy of investment is more Macroeconomic and a well diversified portfolio.

Since good old days of my understanding Stock Markets and Exchange Rates in newspaper columns and television news inspired me to learn investing on my own. Coming from Sri Lanka ‘A Small Island with a Small Miracle’ I learnt about ‘Equity Investments’ in a relatively small stock exchange at a time when it was a bear market and when our world was booming with sub-prime mortgage financial crisis and a property bubble; however today Sri Lanka’s only stock market, the Colombo Stock Exchange (CSE) is one of the leading and best performing Stock markets in the world and that is where I started my investing.

If I share a few of my own Investment Strategy in real world I started to invest in Colombo Stock Exchange with my 25% of savings of every monthly salaries while employed in Sri Lanka’s leading telecom service provider during 2006-2008 and my initial investment was about US $ 200 (Sri Lankan Rs.20000) and from their I started to follow the world and local financial trends in a bear market which is now a bull market which has about only about 245 listed companies to date (2010). My strategy had been very successful in investing in Sri Lanka and apart in this portfolio in KaChing too I follow a similar and a very Advanced Investing Mechanism combined with long term information flow and financial flow in this world economic system. 

To best of my knowledge I have pretty amazing investment related experiences to share with relatively very small investment portfolios since the beginning.The best investment strategy I learned was from my Paternal Grandmother who invested in Colombo Stock Exchange by way of subscribing 1000 shares when Sri Lanka’s only Oxygen company, Ceylon Oxygen Limited was going with an Initial Public Offering in 1990 at Rs.5 per share and who later sold those shares when company was delisting while the per share valuation was at Rs.218 in 2007 so it was almost a 4260% return on investment after 17 years in which case if she eventually deposited that money in a bank in 1990 she would have only been able to achieve a return on investment of about 505.447% (calculated on compounding basis at 10% interest per annum which was the average interest rate in Sri Lanka from 1990-2007) after 17 years.So when my Paternal Grandmom was getting her healthy returns from her early investments in 2007 at her age of 76 I was entering to Equity Investments while focusing myself to pick higher growth shares in a bear market.And in my case very recently while the warfare situation which brought down tourism in Sri Lanka in 2007 period disappeared in 2010 I almost achieved a 164.47% Return on Investment (ROI) after 3 years by selling John Keells Hotels (Holding company of the most valued and luxury hotels in Sri Lanka).Sri Lanka is a Global Great Haven for Higher Return on Investment Portfolios.

Secondly, there is this occasion where I sold few of my Pounds at the highest Foreign Exchange rate ever which the Sterling Pound ever achieved All Time High in its FOREX Rate history in last 100 years.The story has its own history when I started collecting coins as a hobby back in 1998 I bought the Sterling Pound at Sri Lankan Rs.100 (cost about Us $ 0.90 at that time) average and I sold my Sterling Pounds at Rs.225 per Pound in 2007 after 9 years and my Return On Investment (ROI) was 125% in a FOREX Deal and I always reinvested my profit gains in many investment avenues starting from very small portfolios.

I am also interested in Commodity Exchanges; and earned higher margins from Commodity Trading and importing Financial Knowledge at no cost and selling it to Local Small Scale Entrepreneurs and invested that money I earned in Colombo Stock Exchange and in many other investing opportunities.

Then I did Knowledge Outsourcing for Undergraduate Students while I was an Undergraduate Student and reinvested my little Revenue and Profits I earned in Stock Market again and sold my Equity at certain peak levels with better gains. 

‘That is how I learnt Investing; And still I am learning on Investments!’

Starting my Investment Approach and Risk Exposure in a developing country I got the best internship training in a highly riskier Business Environment under a higher risk managing Entrepreneur whose business was continuously facing the challenges of Foreign Exchange Risk,Cash In Flow-Out Flow Risk,Natural Risk,Weather Condition Risk, International Trade and Political Risks,Local Economic Risk,Unhealthy Competition Risk,Oil and Gas Price Risk and also learnt many investing approaches through Upcoming Entrepreneur who is also associated with Higher Margin Income Generating Insurance sector in the country while Financial Management and Risk Transferring Methods and Corporate Social Responsibility was learnt under a Woman Entrepreneur and my Financial Evaluation and Valuation Methods were formulated by an Ex Banking Lady type.Above all I learnt Small Capitalized Entrepreneurship and Managing a Real World Balance Sheet Effectively and achieving the maximum outcome through available resources and commodities from my Maternal Grandmother and Mother.

‘It was all learnt from my family.’ 

Then I was working as a Business and a Financial Journalist in Sri Lanka; and in Media Industry I realized that information can take a very significant role in bringing up Share Values and bringing down Share Values at the same rate of speed while information could also increase and decrease Investor Sentiments through Controlling Selling and Buying in Capital and Currency Markets.I have my own experience in it back in the midst of the rising financial crisis in 2008 when I was the first to expose Sri Lanka’s and South Asia’s largest Financial Scam which amounted to Rs.26 billion(Approx. US$ 260 Million) and further totaling the entire scam valued at Rs.50 billion (Approx. US $ 500 Million) along with other failed financial subsidiaries at the time.My Investigative Journalism which motivated other journalists and countrywide media along together brought down the Share Value of Sri Lanka’s 3rd Best Private Commercial Bank; Seylan Bank PLC’s (Which Started in the Year I was born:1987) Ordinary Voting Share Value to Rs.15 (Approximately US $ 0.15) from Rs.30 (Approx. US $ 0.30) on the day company was announcing people had oversubscribed its Debenture Issue amounting Rs.400 million (Approx.US $4 million) which was on on 31st of December 2008 Sri Lankan Central Bank dissolved the Board of Directors of the Bank and appointed a fresh Board of Directors for Seylan Bank PLCafter Government Intervention and further My Investigative Journalism brought down down the Share Value of about 8 Listed Companies of the same holding group (Ceylinco which was also controlling about 100 financial subsidiaries in the country and which the holding company was involved in accepting public deposits from 60 of its financial subsidiaries boasting for about Rs.270 Billion(Approx. US $ 2.7 Billion) Public Deposit Base while about another 20 subsidiaries of them were involved in Real Estate Business) in Colombo Stock Exchange and drove Public Cautious Sentiments on the confidence of the Entire Financial Industry in Sri Lanka which has a population of about 20 Million.

So the Macro Investment strategy is crucial for me and I believe and expect higher Return On Investment(ROI) and perhaps taking a Long Standing Position in some investments to get the Best Return.Construction,Hedge Funds,Mutual Funds,Unit Trust Funds,Exchange Traded Funds,Financial,Gaming,Healthcare,Industrial,Media,Real Estate,Retail,Services,Technology,Telecom,Transportation,Utilities and Energy and Entertainment every sector has its own value in terms of Foreign Exchange and Financial and Capital Markets and finally in the Global and Universal Economic System.

In my Portfolio I always intend to keep a relatively large fund on higher dividend generating equities as those dividends could be reinvested to increase the portfolio value and diversify assets and investments.Mostly I sell at higher ranges minimizing the portfolio turnover coming down from brokerage commission and other related costs and continue to sell and buy momentous stocks perhaps following the Momentum Strategy at aggressive moments in Capital Markets.

I invest in companies digging down to balance sheets and based on demographics,historical performance,global spread,share growth valuation and analysis and considering the Non-Financial Returns and Gains that I could achieve being a shareholder of Global Best Brands.

The Key 7 Points to Remember for a Macro Investor!

1. Sometimes I am prepared to take a higher risk if my Investment Analytical Seventh Sense is Optimistic about Higher ROI.

2. As I believe Utilities and Energy along with Metals are more Important at present as they are highly valuable and rare and limited resources.

3. Then the Financial Sector is always a better growth equity investment as they are the creators of the ‘Primary Driver-Money’ in Global Economy. 

4. Technology Shares had been delivering a reliable growth when you consider the Global Information and Media Giants as they earn profits at any downturn because we are being carried away by Information Technology in present society. 

5. Very first thing is we need to survive in order to do all these things and thus we have to eat to live and as a consequence Agriculture and Retail Sector will always have a rising growth. 

6. Largest Capitalized Stocks take a relatively large portion in my portfolio while Micro Cap,Mid Cap and Small Cap Stocks are also equally represented.

7. Growth shares continue to increase my Portfolio Value while Value shares and Blend shares keep me maintaining a healthy Portfolio at all times.

‘Remember Every Single Cent in Your Investment Portfolio has a Value.’

Happy and Great and Futuristic Investing!

May Everything Everyone Do Become a Success!