HI Victor..saw yr webinar on what to do when stock portfolio is in red…Very informative and much appreciated.
You mention that preferably we shd buy strong company with recurring income. I agree with this point. Do you consider a manufacturing company like Venture, UMS, etc having recurring income? They also have to depend on their end customers orders. If end customers are strong, their order books will be strong accordingly.
Hi Mun Seng,
Both of the company that you mentioned are mainly manufacturing company. The recurring part is depend on who is their customer and what are the percentage contribution from the customer.
For example, if the company have customer like Apple and they help to manufacture a part of the Iphone, then the business may be recurring because consumer usually change their iphone every 2 years. If Iphone product only contributed 10% revenue and the rest are other products are not recurring in nature than the business does not seem recurring.
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