In business, as in life, not everything ends in success.

Even the best investors only turn out to be right six out of ten times.

So, whenever there is a claim that an investment is sure to make money, run as quickly as you can; it must be a scam.

True, it takes time for an investment to become profitable, but it is equally important to know when it is time to cut your losses.

Let’s look at one example.

FoundPac Group, was set up as a trading business in May 2005.

It later started its manufacturing business in February 2006.

Over the years, the company has become an established powerhouse in a few core precision engineering products for the semiconductor industry.

Specifically, they design and manufacture stiffeners, test sockets, and hand lids. These components are essential for semiconductor testing.

It counts large multinational semiconductor manufacturers, outsourced semiconductor assembly and test companies (OSATs), and PCB design houses across the global electronics and semiconductor industry as its customers. Business was good, and the free cash flow compound annual growth rate (CAGR) between the 2017 and 2020 financial years was approximately 21%.

In 2020 and 2021, the company attempted to diversify into Internet of Things (IoT) solutions and technology, as well as to manufacture and sell accessory cables and connectors.

Those diversifications did not pan out.

The company recorded a total loss of RM8.278 million when these segments were finally sold off during the 2025 financial year.

The investing community have cheered on this decision.

Management had decided to cut the losses and focus its energy on its core precision engineering business.

Free cash flow is positive once again.

In life, as in business, you win some and you lose some.

The trick is knowing when it is time to cut your losses and move on.