Wednesday, October 8, 2008

Fighting Inflation

One way to mitigate the impact of inflation is to purchase stocks of publicly listed companies which we have relationship with as consumers.

General rule of thumb works something like this. If public transport costs go up, buy companies like SMRT and Comfort Delgro. You will get back the delta expenses in terms of higher dividend payout. It's a simple logic.

Higher fixed line telephone costs, buy the Telcos.

Rising electricity costs, too bad. Our GENCOs are not publicly listed (yet).

So, stop whinning and complaining about cost increases. Nobody will listen nor care, if you belong to the sandwich layer (that makes most of us). You have to do something, and you can.

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