My Overall Approach towards Investing
By Saghir Aslam
Rawalpindi, Pakistan
(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the Ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)
As you consider a prospective investment, I hope you will keep two things firmly in mind: make sure you trust the people with whom you are investing and take the time to understand, at least generally, the investment you are about to make. It is also self-explanatory why trust is so important –after all, it is your money, is equally important. A basic comprehension of what type of investment you are making will allow you to apply your own selection process. It does not have to be fancy or technical, but it is yours and it assure you that you are making in investment which is consistent with the way you look at things and think about things.
My desire to assist individuals with their investment is nothing more than the next step along the path of service to my community, with the blessing of Allah.
The investments I make not for immediate gratification. My focus is very specifically on the long term. Over the years, this approach have served me very well in my personal investment. I have been rewarded time and time again for waiting patiently for the long term upward bias of the market to carry quality, seasoned stock ahead.
It can be very difficult to be patient when market conditions are unfavorable. Few thing are more difficult than holding on through tough times. The discipline to hold, rather than panicking out of the market when times get tough, is essential to long term investment success.
I will be the first to admit that sometime holding quality stocks is monotonous and boring. Not every day brings exciting price movements. Slow, steady progress, though, awaits those who can maintain a consistent patterns to buying good companies when their price dip and then holding them.
My philosophy is not based on complicated theories. It does not employ convoluted strategies. Rather I look for strong, quality companies which I can purchase and bargain prices. Then, I simply hold those investments and let time work for me. I am not right every time, but when I am wrong I cut my losses and move on. It is a disciplined process.
For the trader I use several philosophies which Inshah Allah I will discuss later in the book. I use 5% of my portfolio which I call “play money” and with the blessing of Allah (saw) I have been achieving better than 10% month. These Strategies are:
- Dividend Capturing.
- Stock Splits
- Channeling or rolling stocks
- Covered Calls.
I will share techniques that demonstrate how you can use the above four strategies Inshah Allah to make your portfolio grow. I will share with you how you can achieve great results investing in companies like Ford, Chrysler, and Pacific telephone and get handsome results using my techniques.
At time I also play risky options. Remember, they are risky (very, very risky), but at the risks are great, so are the rewards. I describe this is holding in ice cube in your hand as time is ticking away if you fail to achieve your goal, it will melt away and you will loss all of your investment. But if you play with a plan, study the situation, and discipline yourself, you can achieve handsome results.
(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, nor does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr Aslam does not have anything for sale.)
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