Last week, the business community was abuzz with news about the poor performance of the local bourse. Subsequently, senior government officials had refuted the report from a reliable international news provider. Whether true or not, over the months, some businessmen has had their nett worth slashed by the millions, if not more. Conversely, there were others who made sizable gains from the stock market during the same period.
I have controlling stakes in two public listed companies now. I would not be completely honest if I say that the performance of the local share market has no effect on me. Just as I have made tidy gains from stocks, I’d also paid the price when the market was not in my favour.
But I try not to let these get to me too much. I believe that in the long-run, a company’s “value” will not be entirely based on fleeting investor sentiments, market cycles or hearsay. Rather, it will be based on its ability to create value to shareholders.
A company based on sound business model, run on the ethics of creating value to stakeholders, will be better able to weather the storm in the market better than those which are not. This is why I make creating value a key priority in my businesses, whether it is in fulfilling students and parents’ expectations or throw in value-for-money features to a property.
When the customers are happy, they will stick with you, whether it’s a bulls or a bears market. It’s the happy customers who will bolster investors’ confidence, who will in turn, make shareholders happy.