Look at a company's track record before investing in it

KUALA LUMPUR: Aberdeen Islamic Asset Management Sdn Bhd has advised potential investors to study the track record of a company before investing in them.

“Research the company for the last 10 years as to what they have done, how they are being managed and where they’re heading.       “Especially, if it is a family-owned company, see how they have treated their minority shareholders in the past.

“If the company has been seen flaunting their assets around then there is a tendency that the company might repeat it in the near future,” investment manager Bharat Joshi said on the sidelines of the PhilipCapital Fourth Annual Investment Conference 2013.

He said such companies should build a sustainable business and make sure the shareholders are fairly treated in order to regain confidence. “This will keep the shareholders for the long-term,” he added.

He also opined that if a company aimed to go private, it should advocate its view to shareholders.

“Explain to them (shareholders) as to why it was not done when the company was listed,” he said, adding that a company should not be privatised when the market is down.

He said with the presence of the minority shareholders watchdog group at AGMs, companies have stepped up governance and transparency.

“The government’s business transparency has also improved over the last 10 years. Bursa Malaysia has done a real good job monitoring all public-listed companies,” he said. — Bernama

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