I invested in the share market.  In Sri Lanka. Passive income. 

Last week I bought another dozen of shares from the capital market. I invested there around 50K in two different companies. (200k in total)

1. Dipped Products is in the manufacturing sector. They mainly export surgical hand gloves and rubber products. 

2. Haycarb. It is also an export manufacturing company that produces the world’s best active carbon. They’re the main suppliers for US manufacturers and Tesla.

After researching many companies, I finally decided to enter into these two companies with confidence. I’m not a trader. Im a long term invertor. Trading is nice I can make quick money and double my portfolio in a short span of time. But it’s become another job then. I don’t want to spend much time. I wanted to invest in the capital market because I wanted it as a passive income. If I research hours and sit in front of the ticker for hours, it will not be passive then. Did you get my point? I’ll explain the difference in coming blogs.

How I get to know about the share market.

When I was at school. We used to talk politics till the food arrives at the table. Then it turns on businesses and economics. The word share market was entangled in my head. I was so curious about it, even though I didn’t know how to invest. I was 16.

What inspired me for investing?

Dad used to get a Sunday newspaper (Rivira, is not available now.) there was a nice article about Investor Mr. Dammika Perera and how he built his emperor. Everything he has acquired is through the share market. That’s the point where I get to know the power of the share market. There he had explained his humble beginnings and his success. This is the moment I got inspired to be a businessman. At that time I didn’t know even what’s difference between businessman and investor though.

When and how I did my first investment. 

Anyway, a few years after, I got my first job in Negombo Sri Lanka.  I was 22. I had some money in my savings. Got to know that there is a branch of Colombo Stock Exchange in Negombo town. I visited there. Actually, it was a nice place. The advisor explained to me how to start investing and benefits. I asked him to help me with choosing a brokerage company. But he did let me choose. And is registered me for future investing forums happening there in which I can participate. I highly recommend you to visit there, if you’re around Negombo or Gampaha district. Its located in the middle of the town, 1st floor of the NationsTrust Bank building.

Finding a brokerage company, relationship.

There are many brokerage companies in Sri Lanka. There we cannot say this is the best or that’s the worse. All taxes and commission rates are the same in every brokerage. Research reports are the same. What mainly differs their quality is, by the trading software we get. I have joined First Capital brokerage company, they use Atrad software. Which is fine. But I highly recommend the DirectFN trading software. More than everything that matters the most is your investment advisor. If you keep a good relationship with him, you can have many opportunities. But they open their hands depending on how much our worth of investment. More my portfolio is heavy he gives his time to me. I don’t really depend on my financial advisor, I completely take decisions on my own. If finance advisors could always be right, they would have become millionaires now, are they? 

Why it’s better than Bank FD?

Bank fix deposits are nice. It’s so safe. And we don’t need to invest our time in research. And risk-wise it’s very low. As the risk is low,  it has a low return you get. 10,000/- today is not worth as same as after ten years. It depreciates its value of the money with time. It is not what you have today as what you get after ten years. But in the share market, every company hustles to gain its capital. They work hard to make a profit. Many types of research, a new experiment, and products year on year. What you do here is take a piece of that company. You own that portion. Whatever the profit they make it comes to you as a dividend or as a capital gain. It never stays the same. Capital markets accumulate more money with the span of technology. 

Risk of Share market

In the share market or any other financial investment, there is a risk. High risk more profit. If you think a capital market is a gambling place, then definitely you gonna lose your money. We cant invest with gut feelings. Sometimes you will make good moves, but it won’t be a too-long journey if you continue it without proper preparation and research. 

My recommendation.

My recommendation is for you is don’t just put all your eggs into one basket. Keep your saving as FDs too. Try half or quarter or else with a small portion in the share market. With time you will gain experience, so you can invest more and accumulate more. 

please add your comments down below.

ask if you have any doubt on CSE and investing. I'm so happy to help you.

Avichills.