I own a penny stock called Tat Seng Packaging (TSP). Here’s a review of its business and why I bought it in September 2019. I just finished reading its annual report and thought it would make a great case study of why a young investor should invest in stocks or equity ETFs rather than bonds to take full advantage of the power of retained earnings.
Before we continue, I would like to make a disclaimer about penny stocks. These companies usually have a nasty reputation and often, this reputation is well deserved. Some problems that afflict them are poor corporate governance and a high chance of market manipulation scams. TSP is a penny stock and I strongly caution you against buying it just because I have the stock. I am merely using this company to make a general illustration.
With the disclaimer out of the way, let’s proceed.
