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Long Term Investor - Comparison of Investment Return If you buy stocks during 2008 Market Crisis

VaIn25
Publish date: Sun, 11 Nov 2018, 01:18 AM

It has been 10 years since 2008 global financial crisis. Recently, people start talking the next financial crisis. I think long term investors will hope that they can buy the value stocks at lowest price during economic crisis and keep it for at least 10 years to get a huge investment return. As the global financial crisis will not happen very frequent, I think investors should start to think about how to maximise their investment return by choosing the right stocks. Below are the comparisons of KLCI component stocks’ market capitalization (2008 financial crisis vs 2018).

Stocks

Market Capitalization (2008 Global Financial Crisis), RM Billions

Market Capitalization (7-11-2018), RM Billions

Investment Return, %

Remarks:

Maybank

42.65

102.541

140.429

 

Public Bank

27.99

95.501

241.206

 

Tenaga

26.80

84.151

213.994

 

Petronas Chemical

xxxx

xxxx

xxxx

Listed after 2008

CIMB

27.93

54.326

94.529

 

Hong Leong Bank

10.05

44.655

344.113

 

Maxis

xxxx

xxxx

xxxx

Listed after 2008

IHH Healthcare

xxxx

xxxx

xxxx

Listed after 2008

Sime Darby Plantation

xxxx

xxxx

xxxx

demerger at 2017

Petronas Gas

18.59

37.002

99.008

 

Nestle

6.32

33.768

434.473

 

Digi

14.31

34.521

141.304

 

Axiata

13.97

32.656

133.795

 

Genting

12.79

26.130

104.287

 

IOI

13.64

28.846

111.539

 

Genting Malaysia

12.71

21.614

70.091

 

KLK

8.75

26.560

203.564

 

MISC

35.97

30.800

-14.377

 

Petronas Dagangan

6.43

27.558

328.276

 

PPB

9.13

24.497

168.336

 

Hap Seng

1.29

24.399

1785.141

 

Hong Leong Financial

4.28

21.803

409.617

 

Hartalega

0.39

21.034

5256.197

 

RHB

9.02

20.973

132.452

 

Dialog

1.35

19.125

1312.648

 

Press Metal Aluminium

0.45

19.534

4242.394

 

Sime Darby

xxxx

xxxx

xxxx

demerger at 2017

Top Glove

1.13

14.851

1218.448

 

Malaysia Airports

3.25

13.539

316.375

 

QL

1.07

11.811

1003.296

 

Telekom

7.85

8.906

13.421

 

 Note: The data is come from different sources and the data is not 100% accurate. Please correct me if the data is wrong.

 

Based on the table, the best-performing stocks are Hartalega, Hap Seng, Dialog, Top Glove and QL which the investment return is more than 1000%. QL is not the KLCI component stocks and some of the stocks in the table are not the KLCI component stocks during 2008 financial crisis. However, they really perform very well and generate a very impressive return to shareholders.

If you miss the best-performing stocks, other stocks still can generate a minimum 100% investment return to you especially banking sector and consumer sector. Usually, we called the KLCI component stocks as blue chip stocks. But, some of the blue chip stocks will not give you a minimum guarantee return if you buy them during financial crisis. For example, if you buy MISC and TM, your investment return will be -14.377% and 13.421%. Therefore, you have to choose very carefully during financial crisis.

 

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Discussions
5 people like this. Showing 21 of 21 comments

lizi

will u choose back the best performer stock again when next crisis come?

2018-11-11 08:16

Bruce88

What is your conclusion & tips for the next crash ?

2018-11-11 08:21

5354_

He choose Gamuda? Change of govn not bec Gamuda causing RM 1 trillion debts?

2018-11-11 08:45

kcchongnz

Good sharing. Two comments below,

1) It is important to compute the total return which includes dividends. Some companies give very good dividend yield.

2) Good to have the computation of compounded annual return as a mean to compare with alternative investment.

2018-11-11 09:12

qqq3

look at this kc....

so excited with trickery....yes, tabulations of such nature are a form of trickery.

because in real life...people do not just have one transaction , at the lowest possible price, and keep for 10 years.....

2018-11-11 12:09

qqq3

I also sailang UMW $1 at that time sold soon after at $ 1.80.....went out to celebrate....2014 high $ 12.50

2018-11-11 12:17

VenFx

Counters like;

Inari(OSATS).......: > 2100% [2011-2018]
Gtronic(OSATS).....: > 7200% [2010-2018]
Vitrox(ATE)........: >13500% [2005-2018]
Elsoft(ATE)........: > 7150% [2005-2018]
Penta(Ate&Robotic).: > 1500% [2010-2018]
JHM(EMS)...........: > 1900% [2015-2018]
VSi(EMS)...........: > 2600% [2006-2018]

Gdex(logistic).....: >10200% [2005-2017]

Yinson(O&G)........: > 2000% [2006-2018]
Hibiscus(O&G)......: > 800% [2016-2018], super bull not come yet ?

2018-11-11 18:16

calvintaneng

This qqq3 is Questionable queer gundu!

UMW WHERE GOT RM1. 00 IN YEAR 2008

I OWNED UMW SINCE YEAR 2004 UNTIL NOW - 14 YEARS ALREADY

I BOUGHT 10 LOTS OF UMW IN YEAR 2004 FOR RM4. 80. AND IT GAVE A ONE FOR ONE BONUS SO I HAD 20 LOTS OF UMW AT RM2. 40

Next year in 2005 UMW dropped to a low of rm2. 32. After that it shot up all the way to Rm16. 00 by year 2013.

For year 2008 UMW highest price was Rm7. 65 and the lowest price was rm4. 82

So you better keep your mouth shut if you don't know the history of UMW

2018-11-11 19:11

qqq3

ok...UMW $1...was the 1997 crisis......

2018-11-11 19:18

qqq3

ok...UMW $1...was the 1997 crisis......but the point is....all these tabulations are a form of trickery....

does not apply to active participants...and certainly does not apply to sifus or to kc..........

people forgot......every day stock market also got positive and negative reasons.....

2018-11-11 19:23

qqq3

everyday also got some thing to fear if one goes looking for it.........

2018-11-11 19:24

qqq3

kc

so what is all these for? so u can do a once a decade purchase?

2 problems..

first problem, market is open everyday

second problem.....u have in yourself the ability to sailang and margin when the opportunity arises?

2018-11-11 20:36

qqq3

third problem....buy already is only half the equation...what happens after that?

2018-11-11 20:38

qqq3

what use all these hind sight drivers ...and talk 3 talk 4 theoreticians?

2018-11-11 20:39

Alex™

hehe, got data to hoot stock in 1920 and exit in 1930?

2018-11-11 21:00

speakup

Transmile was a KLCI component stock last time, now delisted.
macam mana?

2018-11-12 10:50

kcchongnz

Posted by qqq3 > Nov 11, 2018 12:17 PM | Report Abuse
I also sailang UMW $1 at that time sold soon after at $ 1.80.....went out to celebrate....2014 high $ 12.50


"Sailang" UMW at $1? How much was your "sailang"?

Sold at $1.80? Wow, not bad, 80% return. So you must be a multi-millionaire now, aren't you?

Which day you bought it which day you sold it for 80% return? The next day? 3 days later which probably is your maximum holding period.

But why didn't you keep it and sold it in 2014 for $12.50? You would be billionaire then. Stupid!

So how to become a $300 millionaire?

But the damning fact is as below, and so how can anyone believe from all your boasting about trading and making three times your capital of $100k to $300k?

Posted by calvintaneng > Nov 11, 2018 07:11 PM | Report Abuse
This qqq3 is Questionable queer gundu!
UMW WHERE GOT RM1. 00 IN YEAR 2008

Posted by qqq3 > Nov 11, 2018 07:18 PM | Report Abuse
ok...UMW $1...was the 1997 crisis......

2018-11-12 12:01

qqq3

kc.... the key point is flexible or not, adaptable or not... not like u.... tied down to so many stuffs,

2018-11-12 16:41

hstha

Automotive semiconductor stocks are very promising.
https://globenewswire.com/news-release/2018/11/12/1649392/0/en/Global-automotive-semiconductor-market-is-expected-to-reach-67-5-billion-by-2023.html

DALLAS, Nov. 12, 2018 (GLOBE NEWSWIRE) -- According to a new market report published by Lucintel, the future of the global automotive semiconductor market looks promising with opportunities for passenger cars, commercial, and electric vehicles. The global automotive semiconductor market is expected to reach an estimated $67.5 billion by 2023 with a CAGR of 13.1% from 2018 to 2023. The major growth drivers for this market are increasing vehicle production, increasing electronic content per vehicle, and growing demand for advanced vehicle safety and comfort systems.

2018-11-12 23:34

PotentialGhost

Sohxi KC chong appear again , KC real results is different what he say. Kc result like shit . Hahaha his student tell me

2018-11-13 11:20

kllow

If the $ is not in need then should keep for generations

2018-11-13 17:30

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