During periods of slow economic growth, seeking additional income or investments with continuous growth potential becomes crucial. Investing in businesses related to the 4 necessities, which are fundamental to human survival and can thrive even during economic fluctuations, may be an ideal solution. For those looking for financial security and the opportunity to generate future returns, investing in businesses associated with the 4 necessities through unit-linked insurance can be a viable option.
Before we delve into the advantages of investing in businesses related to the four requisites and explore specific investment opportunities, let's first understand the concept of the four requisites.
What are the four requisites?
● Food: Food is essential for survival, providing the body with energy and nutrients. Consuming nutritious foods rich in protein, carbohydrates, vitamins, and minerals helps strengthen the body and enables it to function optimally. Good food not only fuels the body but also supports the proper functioning of various bodily systems. Regardless of the economic situation, food remains a fundamental human need.
● Shelter: A safe, sturdy, and comfortable dwelling provides a haven for rest and daily living. Many people aspire to own or dream of a well-designed home that caters to their lifestyle, offering protection from the elements and ensuring security against crime.
● Clothing is essential for covering the body and maintaining a suitable body temperature in various weather conditions, whether it's hot or cold. Clothing also protects the body from changing environmental factors like dust, smoke, or chemicals. Moreover, in today's world, clothing is not just a necessity but also a fashion statement, with people frequently purchasing new clothes.
● Medicines are vital for maintaining and restoring health. Unfortunately, effective medicines often come with a high price tag. Access to quality medication enables timely treatment of illnesses and reduces the risk of severe complications.
Now that we have a clear understanding of what the four requisites are, many of you might already grasp the advantages of investing in businesses related to them. However, let's delve deeper into the specific benefits of investing in these essential sectors.
Why Invest in Businesses Related to the four requisites?
● Low Risk: As these goods or services are fundamental necessities for human survival, such as food, shelter, clothing, and medicine, there is a constant demand for them regardless of the time of year or the economic climate. This makes businesses in this sector more stable than others that might be dependent on changing fashions or trends. Consequently, investors have the opportunity to generate consistent and sustainable income.
● Adaptability: Businesses related to the four requisites are highly adaptable to market changes because the demand for these basic needs never diminishes. Businesses can innovate their products or services to stay relevant and meet the evolving needs of customers. For instance, food businesses can adapt to the trend of healthy eating, while clothing businesses can develop eco-friendly products.
● Sustainable Growth: The demand for these goods and services increases with population growth and economic development. Even during economic downturns, the demand for better housing, nutritious food, high-quality clothing, and access to good medicine will inevitably rise in the long term as the economy recovers and the purchasing power of the affluent grows.
● Diversity of Investment Opportunities: Investing in businesses related to the four requisites offers a diverse range of investment opportunities. For example, within the food industry, one can invest in restaurants, food products, or agricultural export businesses. In the real estate sector, investments can be made in housing projects, condominiums, or senior living facilities. This diversity allows investors to choose businesses that align with their preferences and expertise.
Having read this far, it's evident that investing in businesses related to the four requisites is highly appealing. For those unsure about where to invest, we've compiled some examples of promising businesses in this sector.
Examples of Businesses Related to the four requisites
1. Food Businesses
● Restaurants: CENTEL, M, MINT
● Beverages: CBG, ICHI, SSC, TACC
● Processed Foods: CPF, TKN, GFPT, TU
2. Housing Businesses
Examples include AP, BLAND, LH, LPN, and SIRI. For stocks in this sector, before making an investment decision, it is important to consider the presale figures, which represent the sales generated from customer purchase agreements. Additionally, backlog, which indicates the value of projects sold but not yet transferred (representing future revenue), and liquidity, which assesses the company's reliance on debt financing compared to its total assets and its ability to service interest payments, should be examined. This is because real estate businesses often utilize debt and therefore have interest expenses.
3. Clothing Businesses
Weather conditions are constantly changing. Having clothing such as shirts, pants, and skirts not only allows us to survive in various weather conditions but also serves as accessories that enhance our personality. Stocks in this group include MC, TNL, etc. For these stocks, the key factors for initial stock selection are gross profit margin and net profit margin, which indicate how well the company manages its product costs.
4. Healthcare Businesses
Stocks in this category include hospitals such as BDMS, EKH, and BH, as well as supplement companies like MEGA, and medical equipment providers like WINMED, TM, SMD, and STGT. When selecting stocks from this group for your investment portfolio, it's important to consider that although the industry benefits from the increasing proportion of the aging population, hospital expansions require proper financial structuring. This can be evaluated through the debt-to-equity ratio; a higher ratio indicates greater risk.
For those interested in investing in businesses related to the four requisites, there are various investment channels available. However, if you desire both life insurance coverage and the potential for investment returns, consider investing in "unit-linked" products.
Unit-Linked: An Attractive Investment Option with Life Insurance
Unit-linked life insurance allows you to invest according to your lifestyle, adjust coverage as your life changes, and maintain protection even if you pause premium payments. It offers both investment confidence and life insurance benefits.
Investing in businesses related to the four requisites is an excellent way to build financial stability and create profit opportunities. These businesses offer consistent demand, low risk, sustainable growth, and adaptability. However, for those seeking investment returns and life insurance coverage, unit-linked insurance is the ideal choice.