Highlights

Icon8888 Gossips About Stocks

Author: Icon8888   |   Latest post: Mon, 25 Nov 2019, 11:10 AM

 

(Icon) Why You Should Learn To Invest In Overseas Stocks

Author:   |    Publish date:


1. Misperception

 

All this while, I invested only in Bursa Malaysia. Occasionally, I saw people wrote articles about investing overseas such as US, Indonesia, Thailand, Hong Kong, etc. I seldom paid attention. To quote a relative of mine, "I would rather stay within my circle of competence."

 

And also, Malaysia is a developing nation, that is where the growth is going to be, right ? As an investor that craves capital gain, why would I want to invest in blue chips in developed countries such as the US ? They are mostly sleepy giants, aren't they ?

 

How wrong have I been.

 

 

2. Plenty of Multi Baggers

 

Last year I spoke to a friend that happened to have invested in US stocks. Nothing fancy or exotic, just some well known names such as Apple, Broadcom, Disney, etc. He told me he made quite a bit of money. Out of curiosity, I studied the historical prices of some famous names. It struck me how easy it is to find Multi Baggers.  

 

(Over the past 10 years, Adobe share price rose from USD30 to USD297, a gain of 900%)

 

(Over the past 10 years, Airbus share price rose from EUR11 to EUR136, a gain of 1,136%)

 

(Over the past 10 years, Amazon share price rose from USD138 to USD1,739 a gain of 1,160%)

 

(Over the past 10 years, Apple share price rose from USD13 to USD265, a gain of 1,900%)

 

(Over the past 10 years, Boeing share price rose from USD42 to USD371, a gain of 783%)

 

(Over the past 10 years, Booking share price rose from USD91 to USD1,848, a gain of 1,900%)

 

(Over the past 10 years, Broadcom share price rose from USD17 to USD312, a gain of 1,700%)

 

(Over the past 10 years, Microsoft share price rose from USD20 to USD150, a gain of 650%)

 

(Over the past 10 years, TSM share price rose from USD8.5 to USD53, a gain of 523%)

 

(Over the past 10 years, Disney share price rose from USD23 to USD144, a gain of 526%)

 

 

3. Key Observations

 

(i) Unlike in Malaysia, multi-baggers are much much more abundant in developed countries. This comes as a shock to most of us. Aren't the US and Europe matured economies ? Why are their companies growing so well ?

 

Because of two reasons : (a) These companies have moat. As such, they are able to register compounded growth over an extended period of time. (b) Despite from developed countries, these companies are world class and sell their products and services all over the world. There is no limit to their market size.

 

(ii) Fair enough, PE multiples of these companies are not low. They range from 20 times to 50 times. But this is the characteristics of strong companies. When you invest in good stocks, don't expect to buy cheap. You are supposed to pay a fair price for quality. Since they are growth companies, over the years their earning will catch up, making your original cost of investment looked cheap.

 

 

4. Concluding Remarks

 

(a) There are two ways you can invest in the stock market.

 

The first way is Value Investing. You buy stocks that are undervalued, wait for them to be re-rated within one to two years (sometime it takes shorter or longer than that), then you sell them and switch to other undervalued stocks, when the opportunity arise.

 

The second way is Growth Investing. You buy stocks that have moat. You hold on to them for ten to twenty years, or even longer. Due to earning growth, the stock price will rise conitnuously and deliver you few hundred to few thousands percent return.

 

(b) I practise both Value Investing and Growth Investing.

 

For Value Investing, I stick to Bursa Malaysia.

 

For Growth Investing, I will park my money with great stocks in developed economies such as US, Europe, Japan, etc. Why not Malaysia ? Because based on my observations, very few Malaysian companies have moat. The chance of picking wrong stocks is much higher compared to those in developed countries. The last thing I want is to hold on to a stock for 10 years only to find out that I was wrong, and the stock stagnated and did not generate the return I aim for.     

 

(c) For my foreign portfolio, I will not put my money in developing economies (Indonesia, Thailand, Hong Kong, etc). Companies in these economies are likely similar to Malaysia. It is likely that not many will have real moat, and very few will eventually become multi baggers. For Value Investing involving switching from one stock to another every one to two years (not due to lack of patience, but due to cyclicality), I would rather play at my homeground, Malaysia whereby I will have the advantage of familiarity. 

Share this

  11 people like this.
 
Icon8888 Take it easy Ricky
19/11/2019 12:33 PM
Sslee Hahahaha
Icon8888 is now promoting capital flight from Bursa. No eye see on bursa already.
By the way I think US market bubble is growing bigger and bigger hope Incon8888 is not a running bull in a china store
19/11/2019 12:59 PM
Icon8888 I am suggesting people consider overseas

But no recommendation on when or where to enter

Investing is a life long undertaking. Many years ahead
19/11/2019 1:22 PM
Targeted Hehehe, Icon please change yr profile photo. Hard to explain but its uncomfortable
19/11/2019 1:43 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) Icon8888 Finally, you acknowledged growth investing. Welcome to my investing world and circle.
19/11/2019 1:43 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) >>>

"When you invest in good stocks, don't expect to buy cheap. You are supposed to pay a fair price for quality. Since they are growth companies, over the years their earning will catch up, making your original cost of investment looked cheap."

>>>



Over the long term, great companies grow their intrinsic values, making their initial prices looking like bargains. Icon8888 is becoming interesting: a heuristic change.
19/11/2019 1:47 PM
Icon8888 that is Calvintaneng photo

========

Targeted Hehehe, Icon please change yr profile photo. Hard to explain but its uncomfortable
19/11/2019 1:43 PM
19/11/2019 1:58 PM
lching hahaha.......
19/11/2019 2:07 PM
Icon8888 you cannot be more wrong, I don't really belong to your world and circle

I have explained many times to you that I am not against Buffetology whereby you buy good companies at fair price and hold on for long term so as to enjoy compounded growth year after year. I think it is a fantastic concept

I disagree with you on two things :

(1) how you practise Buffetology. Your Nestle is a good company, but it is trading at 50 times PER, and its only market is Malaysia. As such, it is difficult to convince me that it will continue to grow and deliver capital gain over extended period of time. At most, it will be paying you good dividend (which is not so fantastic, for me).

(2) the way you condemn anything other than Growth Investing. I am open minded and accept both Growth Investing and Value Investing as valid investment philosophy.



3iii Icon8888 Finally, you acknowledged growth investing. Welcome to my investing world and circle.
19/11/2019 1:43 PM
19/11/2019 2:25 PM
RainT overseas market is to vast and complicated

need spend lots of time & effort to monitor

buy unit trust that have overseas exposure is smarter choice
19/11/2019 2:46 PM
RainT dont have much time to study overseas stocks

buy mutual fund is better
19/11/2019 2:51 PM
Icon8888 "overseas market is to vast and complicated "

That was exactly how I felt at the beginning (please read Section 1 of my article)

However, after I started investing overseas, I realised that due to the high quality of the companies (applicable to those strong companies in US), stock picking has actually become substantially less complicated

there are less risk factors to be considered

that is why in the Concluding Remarks, I mentioned that I will only invest in strong stocks in developed countries

so far, my only pick is Taiwan Semiconductor Manufacturing Company. It fulfils the criteria for long term hold due to its technological supremacy that almost makes it a monopoly OVER THE NEXT FIVE YEARS AT LEAST
19/11/2019 2:53 PM
casualplay888 Icon8888 sifu, u bought Taiwan Semiconductor Manufacturing from Taiwan stock market or the US stock market? I think it is also good to invest in Taiwan
19/11/2019 3:31 PM
UnicornP Icon's article only applicable to the top 2% of Malaysians who are extremely knowledgeable and filthy rich.
19/11/2019 3:59 PM
wiki123 Icon, I support you... when you go to overseas investing, one will discover the number of quality companies that's available... watchout for Disney too...
19/11/2019 5:00 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) >>>

Icon8888

I disagree with you on two things :

(1) how you practise Buffetology. Your Nestle is a good company, but it is trading at 50 times PER, and its only market is Malaysia. As such, it is difficult to convince me that it will continue to grow and deliver capital gain over extended period of time. At most, it will be paying you good dividend (which is not so fantastic, for me).

(2) the way you condemn anything other than Growth Investing. I am open minded and accept both Growth Investing and Value Investing as valid investment philosophy.

>>>>



Welcome all the same to the world of quality growth investing. Stay with quality for the long term. Generally you do not have to sell.
19/11/2019 5:20 PM
Sslee Hahahaha
3iii, Incon8888's gruesome stock Armada is now RM 0.53.
19/11/2019 5:25 PM
stockraider Thats why i say u must use peter lynch strategy instead of buffet strategy bcos LYNCH offer u more investment choices mah...!!

Posted by Sslee > Nov 19, 2019 5:25 PM | Report Abuse

Hahahaha
3iii, Incon8888's gruesome stock Armada is now RM 0.53.
19/11/2019 5:28 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) >>>>
Posted by Sslee > Nov 19, 2019 5:25 PM | Report Abuse

Hahahaha
3iii, Incon8888's gruesome stock Armada is now RM 0.53.
>>>>


The power of compounding long-term is truly amazing. Beats these short term gains many hundreds of time over each year.
19/11/2019 5:29 PM
stockraider If u can get more than 100% in 4 mts like armada...are u not compounding leh ??

Posted by 3iii > Nov 19, 2019 5:29 PM | Report Abuse

>>>>
Posted by Sslee > Nov 19, 2019 5:25 PM | Report Abuse

Hahahaha
3iii, Incon8888's gruesome stock Armada is now RM 0.53.
>>>>


The power of compounding long-term is truly amazing. Beats these short term gains many hundreds of time over each year.
19/11/2019 5:31 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) Everytime my portfolio value doubled, the incremental value of the last doubling period exceeds the gains derived from all the period before since inception of my portfolio.

That is the true power of compounding over the long term.
19/11/2019 5:35 PM
stockraider U slowly tunggu loh...NESTLE PE 50x will take at least 30 yrs to double loh....!!

Posted by 3iii > Nov 19, 2019 5:35 PM | Report Abuse

Everytime my portfolio value doubled, the incremental value of the last doubling period exceeds the gains derived from all the period before since inception of my portfolio.

That is the true power of compounding over the long term.
19/11/2019 5:37 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) >>>>

stockraider U slowly tunggu loh...NESTLE PE 50x will take at least 30 yrs to double loh....!!

>>>>


Since 2009, Nestle price has gone up 7 multibaggers. At every price, raider asked those with Nestle to sell!
19/11/2019 5:46 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) Raider should be honest.

Nestle has delivered hugely to its long term investors.
19/11/2019 6:00 PM
i3lurker lack of sleep shortens lifespan irrevocably
takes more than 2 weeks to recover disturbed sleep patterns
rich people are usually educated nowadays.
the illiterate rich have all died
educated people know how to take care of health.

for the rich, there is no reason to invest in the US.

for the poor, they just cannot afford it.

leaving just those extra greedy semi-rich people who want more money at the expense of shorter lifespan. Die faster never mind. The money fanatics.
19/11/2019 7:08 PM
probability wei..is that image really calvintan? but it matches the image i had on him quite closely!...really handsome man.

the singer who sang pen-pineapple-pen also looks similar i think...cant remember!

Posted by Icon8888 > Nov 19, 2019 1:58 PM | Report Abuse

that is Calvintaneng photo

========
19/11/2019 7:58 PM
probability I think those accumulated reasonable capital from local stocks...should venture overseas slowly with small capital first...to feel the depth of the water...at least for 6 months...before going heavy...

Icon, soojinhou...kindly post your recommendations in i3...
easy for part-time man like me to monitor in a single location.
19/11/2019 8:01 PM
JN88 Malaysia stock:
1. Boss earn money for continuously few years positive net profit and thinking to listed in KLSE.
2. After listed in Bursa, Boss start how to draw the graft, earn huge profit, high enumeration and so etc.
3. This cycle can repeat at least 10-20 years.
4.No value, less dividend, less attractive.

US stock:
1. Boss start a business, the whole mindset is thinking about creating value.(this value mean value and impact to society but not the money value)
2. After company get profit, boss absorb more talent, R & D creating more value.
3. The counter in US basically have 2 important characteristics (cpital growth and dividend growth)
4. The rise in stock price is not cycle or goreng , but the value they sell their service to entire world.
20/11/2019 10:51 AM
JN88 IN Malaysia: Many good company creating value...but wrong marketing in whole world and less creativity...

Eg. Topglov, Kossan, Airasia, Penta....Only Glove company in Malaysia creating value. But the power is too low...For Airasia, due to political issue.....

The should learn, AIA, ALlianz, GE how they penetrated into other country even their own country have their own firm.
20/11/2019 10:55 AM
stncws kyy should go...he will win 1b....instead win 100m here
20/11/2019 11:02 AM
ongth60 you can trade with etrade. just open a trading account outside...just be aware that trading involve the risk of "currency exchange" on top of the stock performance.
20/11/2019 1:07 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) Nestle up RM 1.80

RM 28.5 million worth of shares traded so far today.
20/11/2019 4:01 PM
Hafizh Zubir Any recommendation on a good, low cost broker to invest in foreign equity? I trade options with saxotrader and tastyworks. Both aren't so great for long term investing because of the maintenance costs. There is saxo investor which looks great but it's not available in Malaysia. TD ameritrade seems reasonable, I'm in the process of opening an account with them. Anyone uses TD? Or hv other suggestions.

I use maybank to invest in bursa. I hv a foreign trading account but it seems too much of a hassle and even my remiser doesn't suggest I use it.
20/11/2019 5:35 PM
Choivo Capital I agree with most of your points.

And my comments are similar to ricky's.

Anybody who is looking for a broker, go for interactive brokers.
20/11/2019 7:25 PM
Choivo Capital As soojinhou said,

PE 10 in malaysia is actually not that cheap, when interest rates are 3%, you are getting a premium of only 7% assuming you are perfectly right and the money is reinvested right.
20/11/2019 7:28 PM
wantousek wat broker do u recommend for overseas trade? tdameritrade?
21/11/2019 12:00 AM
leno just a simple reminder : if u cannot make money in your own tuff .. u cannot make in other ppl, if u lose money in your tuff, u will lose even more .. on top of poor info, late news, poor grasp of other country, foreign exchange eating up your money, got scammed, any development u will be the last to received, ... i've known personally a lot of ppl ... real ppl ... who started with bursa, go to FX, then oversea stock, then option, then ... disappear. THEY LOSE and LOSE and LOSE. One thing they wish ... to turn back the time, and never touch anything at all. These are TRUE STORIES. Sekian.
21/11/2019 9:33 AM
Icon8888 leno, my article says that you should invest in good foreign companies that can be held for real long term so as to enjoy compounded growth (I argue that such companies are rare in Malaysia, it is like looking for fish in desert)

I never ask people to punt forex, option, or speculative trade at foreign market

for those kind of activities, do it in Malaysia, if you want, so as to enjoy home advantage

I thought my article makes it very clear ?
21/11/2019 9:54 AM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) >>>>

Posted by leno > Nov 21, 2019 9:33 AM | Report Abuse

just a simple reminder : if u cannot make money in your own tuff .. u cannot make in other ppl, if u lose money in your tuff, u will lose even more .. on top of poor info, late news, poor grasp of other country, foreign exchange eating up your money, got scammed, any development u will be the last to received, ... i've known personally a lot of ppl ... real ppl ... who started with bursa, go to FX, then oversea stock, then option, then ... disappear. THEY LOSE and LOSE and LOSE. One thing they wish ... to turn back the time, and never touch anything at all. These are TRUE STORIES. Sekian.

>>>>>



I have to agree with Leno totally.

You will know the local companies a lot better than the foreign ones.

As long as these companies are "WITHIN YOUR CIRCLE OF COMPETENCE", you will do alright.
21/11/2019 11:18 AM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) >>>


Posted by Icon8888 > Nov 21, 2019 9:54 AM | Report Abuse

leno, my article says that you should invest in good foreign companies that can be held for real long term so as to enjoy compounded growth (I argue that such companies are rare in Malaysia, it is like looking for fish in desert)

I never ask people to punt forex, option, or speculative trade at foreign market

for those kind of activities, do it in Malaysia, if you want, so as to enjoy home advantage

I thought my article makes it very clear ?

>>>


This post reveals a lot of the person and his investing. Rather mixed up thinking.



Let me just share a very simple statement of Buffett and the offered the reason why this statement is so powerful and rewarding, for those who understands it.

"It is better to buy and own a wonderful company at a fair price than a fair company at a wonderful price. Avoid a gruesome company at any price."

A wonderful company (a great company) grows its intrinsic value over a long time. You are buying into its earning power long term. Long term investing into these compounders offer a BIG MARGIN OF SAFETY.

MARGIN OF SAFETY is the 3 most important words of the book Intelligent Investor by Benjamin Graham. It is this BIG MARGIN OF SAFETY that has reduced by risks in long term investing and at the same time, rewarded my investing over the long term.
21/11/2019 11:27 AM
stockmanmy I have nothing to add
TSMC also doing well. I have reserved 10% for TSMC, still got 90% to trade/ speculate in Malaysia.
21/11/2019 12:12 PM
untong I like Icon8888 open minded and humble, most importantly willing to share :)

I dont know about moat but i do know those companies like Airbus/Boeing, Adobe/Microsoft do have global moat. If i open an airline company, where else i buy airplane other than Airbus/Boeing?
If i open a company need softwares to install on the PCs, wherelse i go other than Adobe/Microsoft etc.Same goes to TSMC hehehe, Such companies are really not easy to find in Malaysia market.

I believe in business world if there is no growth,the value will be destructed over time. 逆水行舟,不进则退。 So growth is always no.1 priority then only how much to pay for it :)

Btw what is the difference of TSMC listed in Taiwan and listed in NYSE?
21/11/2019 1:24 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) >>>

3. Key Observations



(i) Unlike in Malaysia, multi-baggers are much much more abundant in developed countries. This comes as a shock to most of us. Aren't the US and Europe matured economies ? Why are their companies growing so well ?



Because of two reasons : (a) These companies have moat. As such, they are able to register compounded growth over an extended period of time. (b) Despite from developed countries, these companies are world class and sell their products and services all over the world. There is no limit to their market size.



(ii) Fair enough, PE multiples of these companies are not low. They range from 20 times to 50 times. But this is the characteristics of strong companies. When you invest in good stocks, don't expect to buy cheap. You are supposed to pay a fair price for quality. Since they are growth companies, over the years their earning will catch up, making your original cost of investment looked cheap.

>>>>


I think icon8888 has to reexamine some of his investment premise. He has expressed all the above observations correctly. Then he chopped his own feet, when he opined, "but there are very few of these companies in Bursa."

If you cannot find or cannot love such companies in Bursa, you are also most likely to miss such companies in other stock markets too.

Since the 2000s, I have mentioned many times, there are only about 20 or so stocks in Bursa which you can hold long term because of their durable competitive advantages or economic moats. We have multi-baggers in Bursa too, just than icon8888's investing plans do not avail him to invest or own them, thus, missing these altogether.
21/11/2019 3:28 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) >>>

(a) There are two ways you can invest in the stock market.



The first way is Value Investing. You buy stocks that are undervalued, wait for them to be re-rated within one to two years (sometime it takes shorter or longer than that), then you sell them and switch to other undervalued stocks, when the opportunity arise.



The second way is Growth Investing. You buy stocks that have moat. You hold on to them for ten to twenty years, or even longer. Due to earning growth, the stock price will rise conitnuously and deliver you few hundred to few thousands percent return.

>>>>



I do both of these too. However, the major portion of my portfolio are into winners in growth stocks (slow growers, stalwarts and fast growers). Turnarounds, cyclicals and asset plays are sometimes in my portfolio. For example: Hai-O when it turned around in early 2005, Guan Chong in the last cyclical upturn, KAF for its undervalued land asset in KLCC area, etc.

But for long term growth in value of your portfolio, stay with great companies that can continue to grow, even if slowly.
21/11/2019 3:35 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) >>>>

(b) I practise both Value Investing and Growth Investing.



For Value Investing, I stick to Bursa Malaysia.



For Growth Investing, I will park my money with great stocks in developed economies such as US, Europe, Japan, etc. Why not Malaysia ? Because based on my observations, very few Malaysian companies have moat. The chance of picking wrong stocks is much higher compared to those in developed countries. The last thing I want is to hold on to a stock for 10 years only to find out that I was wrong, and the stock stagnated and did not generate the return I aim for.



(c) For my foreign portfolio, I will not put my money in developing economies (Indonesia, Thailand, Hong Kong, etc). Companies in these economies are likely similar to Malaysia. It is likely that not many will have real moat, and very few will eventually become multi baggers. For Value Investing involving switching from one stock to another every one to two years (not due to lack of patience, but due to cyclicality), I would rather play at my homeground, Malaysia whereby I will have the advantage of familiarity.

>>>



As for icon's above thinking, I have to agree with Leno's comments.

If you are not able to find great stocks in Bursa, you are also unlikely to love these stocks that are in other stock markets. Your thema of investing prevents you from liking them, thus, you are more likely to dislike them than to like them, given your reasoning.

Just look at calvin, he continues to come out with promotions of the most gruesome stocks. He is what he is and we should not be surprised by his liking of these stocks. He will never be able to appreciate the great stocks that I like.

Also, I must say icon's comments on the differences in our market and foreign markets are not rational. He should examine himself, his investing philosophy and method. After all, the greatest risk in investing is ONESELF.
21/11/2019 3:40 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) FRIDAY, 1 AUGUST 2008
Investment Policies (Based on Benjamin Graham)
Summary of Investment Policies

A. INVESTMENT FOR FIXED INCOME:
US Savings Bonds (FDs or Amanah Sahams for Malaysians)

B. INVESTMENT FOR INCOME, MODERATE LONG-TERM APPRECIATION AND PROTECTION AGAINST INFLATION:
(1) INVESTMENT FUNDS bought at reasonable price.
(2) Diversified list of primary common stocks (BLUE CHIPS) bought at reasonable price.

C. INVESTMENT CHIEFLY FOR PROFIT: 4 approaches are open to both the small and the large investors:
(1) Representative common stocks bought when the MARKET level is clearly LOW.
(2) GROWTH STOCKS, when these can be obtained at reasonable prices in relation to actual accomplishment – GROWTH INVESTING.
(3) Purchase of securities selling well BELOW INTRINSIC VALUE – VALUE INVESTING.
(4) Purchase of WELL-SECURED PRIVILEGED SENIOR ISSUES (bonds and preferred shares).
(5) SPECIAL SITUATIONS: Mergers, arbitrages, cash pay-outs.

D. SPECULATION:
(1) Buying stock in new or virtually new ventures (IPOs) .
(2) TRADING in the market.
(3) Purchase of "GROWTH STOCKS" at GENEROUS PRICES.


_______________


For DEFENSIVE INVESTORS: Portfolio A & B
(Portfolio A: Cash, FDs, Bonds Portfolio B: Mutual funds, Blue chips)

For ENTERPRISING INVESTORS: Portfolio A & B & C
(Portfolio C: Buy in Low Market, Buy Growth stocks at fair value, Buy value stocks i.e. bargains, High grade bonds and preferred shares, Arbitrages)

For SPECULATORS: Portfolio D
(Should set aside a sum for this separate from their money in investing.)

________________
________________


Types of Investors

Graham felt that individual investors fell into two camps : "defensive" investors and "aggressive" or "enterprising" investors.

These two groups are distinguished not by the amount of risk they are willing to take, but rather by the amount of "intelligent effort" they are "willing and able to bring to bear on the task."

Thus, for instance, he included in the defensive investor category professionals (his example--a doctor) unable to devote much time to the process and young investors (his example--a sharp young executive interested in finance) who are as-yet unfamiliar and inexperienced with investing.

Graham felt that the defensive investor should confine his holdings to the shares of important companies with a long record of profitable operations and that are in strong financial condition. By "important," he meant one of substantial size and with a leading position in the industry, ranking among the first quarter or first third in size within its industry group.

Aggressive investors, Graham felt, could expand their universe substantially, but purchases should be attractively priced as established by intelligent analysis. He also suggested that aggressive investors avoid new issues.



http://myinvestingnotes.blogspot.com/2008/08/investment-policies-based-on-benjamin.html
This was the first article posted on my blog.
21/11/2019 3:45 PM
Integrity. Intelligent. Industrious. 3iii (iiinvestsmart) Your investment goals determine which stocks to include in your portfolio


The investment goals you have established are another important ingredient in determining which stocks to include in your portfolio.

If your investment goals are primarily long-term in nature, you should build a stock portfolio that is best able to meet these long-term goals. Choose the stocks of companies that have good long-term growth prospects.

If your main investment goal is to enjoy a stable source of current income, you should own stocks that pay liberal but secure dividends.


Keep in mind that constructing a portfolio of stocks that meets your investment goals does not lessen the need to maintain a diversified portfolio.
22/11/2019 11:01 AM
stockraider WHY U DO NOT NEED TO BE SOHAI LIKE 3iii BELOW LOH :

For the past latest 5 yrs Icap compound return is 1% pa, this is obvious an underperformance, if u compare to FD about 3.5%pa bcos TTB put most of its investable in FD loh...!!

RAIDER SAYS THE RIGHT APPROACH IS LIQUIDATE THE CO IN THE COMING 2020, AND TAKE BACK YOUR CAPITAL WITH A GAIN OF 30% LOH, GIVEN THE INVESTMENT IS MAINLY ON FD WHICH U CAN OBVIOUS DO IT YOURSELF LOH...!!

DON FOLLOW SOHAI 3iii LOH....!!

iCapital.biz performance over the last 14 years

iCapital.biz was listed at the end of 2005 with a NAV of around RM 1.00.

On 24th October, 2019, its NAV was RM 3.21 and its share price on 25th October, 2019 was 2.42 per share.

Over the last 14 years, it gave 1 dividend of 9 sen per share.

Over the course of the last 14 years your investment in icapital.biz grew from $1.00 to $3.30, its compound annual growth rate, or its overall return, is 8.90%.

Share price fluctuations of iCapital.biz over the last 14 years

iCapital.biz traded at a premium to its NAV in its early years of listing. It was trading at high price of RM 2.48 in the early days of January 2008.

Its price crashed with the Global Financial Crisis. The premium to its NAV disappeared and it was trading at a huge discount to its NAV when its share price crashed to 1.06 in October 2009.

Since then, its share price has climbed upwards steadily over the years and always trading at a discount to its NAV.

On 25.10.2019, icapital.biz is priced at RM 2.42 per share.

So, who are the winners or losers in this stock?

The initial shareholders who hold onto to their shares until today from listing are obvious winners.

The buyers of this stock in and around January 2008 were obvious losers. They would have bought at very high prices and at huge premium to its NAV too.

However, for those who held onto this stock even when bought in January 2008 for the long term and who continued with a dollar cost averaging strategy over the years, they might still be winners overall. This requires discipline and a firm investing philosophy.

Those who bought into icapital.biz from October 2008 when its price was the lowest and at any time subsequently and held till today are also winners, provided they bought below 2.42 per share.

Yes, there are obvious winners in this stock but they have to be in this stock long term and have done continuous buying of the stock over time (dollar cost averaging) when the price was obviously not too high.

Are there more winners or losers in this stock?

I believe the majority of players in the stock market are short-term traders. As traders, they are in at the time when the stock enjoys some popularity and they are out when the stock appears disfavoured.

Thus, they are likely to be in the stock at the time when the prices were high and out when the prices dropped; they bought high and sold low.

I think icapital.biz is no different from other stocks in the Bursa. Though over the long term, icapital.biz has delivered positive returns, for those who have bought and sold icapital.biz stocks over the years, on an aggregate, there were more losers than winners.

The risk in investing is not the stock. It is the person staring back at you in the mirror: YOURSELF.
22/11/2019 11:06 AM
onetonneman Hi Choivo,

Thanks for your recommendation.

I have taken a look at Interactive Brokers's fee structure, I think their rates are indeed very attractive and competitive.

My main concern is:
How to fund the trading account? Wire it to IB in Ringgit Malaysia then convert it to US Dollar on IB platform?

Since IB doesn't have an branch/bank account in Malaysia, the money has to be T/T to IB US or IB HK? How much did your bank charge you each time you performed T/T?

Thanks.
22/11/2019 12:41 PM
tracy92 icon, can I have ur view in Kobay? Result looks good. Are u still holding?
22/11/2019 7:15 PM


 

215  124  395  1531 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 ECOWLD 0.78+0.035 
 SAPNRG 0.260.00 
 EKOVEST 0.815+0.02 
 INSAS-WB 0.0050.00 
 ECOWLD-CV 0.025+0.01 
 HSI-H8F 0.14-0.05 
 SAPNRG-WA 0.1150.00 
 HSI-C7K 0.32+0.04 
 IWCITY 0.905+0.025 
 KHEESAN 0.49-0.005 

FEATURED POSTS

1. Leveraged & Inverse ETF CMS
Partners & Brokers