Your money - Josephine Kwok

PUBLISHED : Wednesday, 27 June, 2007, 12:00am
UPDATED : Wednesday, 27 June, 2007, 12:00am

Age: 25

School: Queen Mary, University of London

Young Post: Do you have any investment experience?

Kwok: Yes, I had my first experience in the stock market four years ago at university.

I did my first degree in finance. Many of my friends invested in the stock market so I decided to give it a try.

YP: How did you learn about investment?

K: Mostly from newspapers. There are financial columns that teach people how to invest in the stock market.

YP: What was your biggest investment?

K: It was about HK$30,000. I don't usually invest a lot in one stock.

I use money I've made from my part-time jobs for investment.

YP: How do you decide which stock to buy?

K: I pay attention to the news and also look at the price/earning (P/E) ratio of each stock.

The higher the P/E ratio, the more expensive the stock is. I compare this ratio with stocks within the same industry and decide on the best one to buy.

If I were to invest in the China market, I would go for companies that have a better reputation.

Their stocks may be valued at a higher rate, but they are more stable and share prices are less likely to drop dramatically.

YP: Any tips on investment?

K: You should only invest if you have enough cash.

Never borrow money for investment. This is very important.

If you are short of cash, you might be forced to sell a stock even if its price is low.

But if you have enough capital, you will be able to wait until the price goes up to sell the stock.

This way, you won't lose money.