Fahd and I put a big chunk of our savings, about $45,000 AUD into the share market in March and April. Today it’s doubled and is worth almost $100,000 AUD and still growing! I share what we did and how it unfolded over the last two and a half months.
The ongoing financial crisis had markets hit bottom on 23 March 2020, and is proving to be worse than the global financial crisis in 2008 and perhaps even the 1920’s great depression. These crashes are a once-or-twice in a lifetime opportunity to multiply wealth.
How it all started
25 years ago I met Fahd because our fathers worked together, in Islamic banks, as we grew up in the middle east. We reconnected again in Australia while studying and found common interests in cricket and Islamic investing.
Fahd had followed his dad by becoming a savvy investment analyst. I kept investing on the side, as my father had taught me, but forged a successful career in IT.
Our passion for halal investing, and often answering questions to help friends and family got similar results and led us to launch tabarr.uk, where anyone can learn how to grow wealth buying sharia-compliant shares in Australian companies listed on the ASX share market.
The COVID-19 crash
Fahd had sold his entire portfolio of shares in January 2020 for a good profit, partly because he felt the market was overvalued and partly out of instinct that something did not feel right. I had money tied up elsewhere and was waiting to get back into the share market.
When COVID-19 started the fear crept into the economy and panic selling ensued on share markets including the ASX. Fahd and I chose to stay calm, objective and apply everything we had learnt over the years.
Most of our purchases ended up being on the 23 of March, the absolute bottom so far. We didn’t predict it, we were just prepared for the market to go either direction and had a clear plan and strategy to execute in both scenarios.
The 5 strategies we used during the crash
The infographic below shows the Australian sharemarket weighted index chart and notes when we bought shares, using our 5 key strategies for investing:
Whats next? Is it too late? Absolutely Not!
The next 3-6 months period leading into the year ahead is an even more important phase during this crash, to invest in the best halal opportunities in the right sectors on the ASX.
Our core strategy is still the following 5 fundamentals:
- Buying quality, long term, halal company shares
- Buying the same company shares if lower
- In-depth analysis of company fundamentals and financial reports
- Tracking macro-economic indicators like unemployment etc
- Studying the market sentiment
Of course, you would have to get set up by knowing where and how you can start buying shares in Australia on the ASX sharemarket.
Anyone can learn to do what we did with as little as $500 to start off, like us, when we began investing. The key is to plan long term, with minimal risk and by applying our basic and advanced strategies, explained via our regular ASX share purchases.
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