When it comes to investing, what you want is to compound returns.
And you want to own stocks where profits grow over time. This increases the pay outs (through share gains and dividends) to investors.
Then, reinvesting these returns will greatly increase your wealth through stocks in the long term.
But most people buy stocks with the idea their share price will go up 20% or 30% in a year. Then sell for a quick profit. It’s tiring to do this.
And more often, these businesses aren’t even fundamentally strong.
The World’s Best Low-Cost Airline — AirAsia
AirAsia Berhad (KLSE:5099) is Malaysia’s biggest low cost carrier. It has close to a 100 aircrafts. And spots a market cap of MYR3.3 billion. In 2001, Mr. Tony Fernandes and his partner, Mr. Kamarudin bin Meranun bought over the company for just one Malaysian Ringgit. Both partners were set on disrupting the airline industry by making flights as cheap as possible.
This worked out well....