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klsequant | Testing KYY’s Golden Rule using data from year 2011-2021
Testing KYY’s Golden Rule using data from year 2011-2021
If you are in the Malaysian investing community,
you sure will read a lot about Mr Koon Yew Yin,
he is a very respected figure in business and investing world.
He is also kind enough to share his insights on investing.
He publicly shared his golden rule to investing
which is
My golden rule is the company must report increasing profit for 2 consecutive quarters and the price is selling below P/E 10.
Today we are going to bring this golden rule to a test.
Stock Picking Methodology
- Filter all stocks with PE > 10
- Pick top 10 stocks with highest 2 consecutive eps growth
- Trading Costs are ignored
- Repeat the steps every month
What Stocks did We Bought?
Datetime Shares_bought
0 2011-03-31 DNONCE MASTER KHIND RSAWIT ICAP MBSB ECOFIRS G...
1 2011-04-30 BLDPLNT SSTEEL INSAS DNONCE ASTINO YTL MALTON ...
2 2011-05-31 TNLOGIS SSTEEL ANALABS AMPROP INSAS SMCAP MAA ...
3 2011-06-30 TNLOGIS SSTEEL ANALABS AMPROP INSAS SMCAP MAA ...
4 2011-07-31 TNLOGIS SSTEEL SURIA ANALABS AMPROP INSAS SMCA...
5 2011-08-31 TANCO FN LFECORP ANALABS SMCAP ASTINO GUNUNG I...
6 2011-09-30 ARK TANCO FN SURIA SMCAP GUNUNG IREKA FCW GPHA...
7 2011-10-31 ARK TANCO FN SMCAP GUNUNG IREKA FCW GPHAROS KS...
8 2011-11-30 BINTAI DNEX KPPROP TGL KERJAYA HCK KPS SYCAL Q...
9 2011-12-31 SYF BINTAI DNEX KPPROP TGL KERJAYA IQGROUP IGB...
10 2012-01-31 PEB SYF BINTAI DNEX KPPROP TGL KERJAYA IQGROUP...
11 2012-02-29 PEB SYF TIMWELL FARLIM ENCORP CIHLDG VERTICE M...
12 2012-03-31 KYM PEB FARLIM ENCORP CIHLDG ACME VERTICE MJPE...
13 2012-04-30 KYM FARLIM ENCORP ACME VERTICE MJPERAK CFM SCO...
14 2012-05-31 ATTA KYM TPC ACME MJPERAK KUCHAI LG KNM PASDEC...
15 2012-06-30 ATTA TPC MJPERAK KUCHAI LG KNM PASDEC JOHOTIN ...
16 2012-07-31 ATTA TPC MJPERAK KUCHAI LG KNM PASDEC JOHOTIN ...
17 2012-08-31 DYNACIA KTB GESHEN OCB SEACERA LSTEEL PO VIZIO...
18 2012-09-30 DYNACIA KTB OCB SEACERA LSTEEL PO VIZIONE MESB...
19 2012-10-31 DYNACIA KTB PEB TMCLIFE GESHEN OCB SEACERA LST...
20 2012-11-30 MUIIND PEB TMCLIFE TGL NYLEX SHH PO GOB RGB LA...
21 2012-12-31 MUIIND PEB TMCLIFE TGL WATTA NYLEX PO GOB OCNC...
22 2013-01-31 MUIIND TGL WATTA PO GOB RGB LATITUD PPHB MFLOU...
23 2013-02-28 LIENHOE PMHLDG OSK MTDACPI MUH EMICO YLI DBHD ...
24 2013-03-31 LIENHOE PMHLDG OSK MTDACPI ADVENTA MUH EMICO Y...
25 2013-04-30 POLY LIENHOE PMHLDG OSK MTDACPI ADVENTA MUH EM...
26 2013-05-31 MTDACPI POLY ASIAPAC ADVENTA CHHB MCT LIONIND ...
27 2013-06-30 MTDACPI POLY ASIAPAC CHHB MCT LIONIND DSONIC G...
28 2013-07-31 MTDACPI ASIAPAC ICAP CHHB MCT LIONIND DSONIC D...
29 2013-08-31 HUBLINE APEX NOTION MMSV ICAP KTB TAWIN ENGTEX...
30 2013-09-30 HUBLINE APEX NOTION MMSV ICAP KTB TAWIN BORNOI...
31 2013-10-31 HUBLINE APEX NOTION MMSV KTB TAWIN BORNOIL ENG...
32 2013-11-30 KSTAR CAB IMPIANA FACBIND LBS DWL MINHO KSSC E...
33 2013-12-31 KSTAR VS POHUAT CAB IMPIANA FACBIND LBS DWL MI...
34 2014-01-31 KSTAR VS HIGHTEC POHUAT CAB IMPIANA FACBIND LB...
35 2014-02-28 VS HIGHTEC HARNLEN POHUAT PMHLDG VIZIONE JCY N...
36 2014-03-31 HARNLEN PMHLDG VIZIONE JCY NAIM MENTIGA OMESTI...
37 2014-04-30 HARNLEN PMHLDG VIZIONE JCY NAIM MENTIGA ICAP O...
38 2014-05-31 AMPROP MTDACPI SNC IQZAN SEACERA EURO SKBSHUT ...
39 2014-06-30 AMPROP MTDACPI SNC IQZAN SEACERA EURO SKBSHUT ...
40 2014-07-31 DNONCE AMPROP MTDACPI SNC IQZAN SEACERA EURO S...
41 2014-08-31 KIMHIN DNONCE PJBUMI MRCB GLOTEC BHIC PDZ KUCH...
42 2014-09-30 DNONCE PJBUMI MRCB GLOTEC BHIC HIGHTEC PDZ KUC...
43 2014-10-31 KIMHIN PJBUMI MRCB GLOTEC DNONCE BHIC HIGHTEC ...
44 2014-11-30 TGL TALIWRK DNONCE MINHO FCW EKSONS CHGP HIGHT...
45 2014-12-31 TALIWRK DNONCE MINHO FCW EKSONS BJFOOD BJCORP ...
46 2015-01-31 TALIWRK MINHO FCW EKSONS BJFOOD BJCORP CHGP PR...
47 2015-02-28 JCBNEXT LEWEKO EKSONS JADI BJFOOD BJCORP ARBB ...
48 2015-03-31 ICON JCBNEXT BJCORP LEWEKO EKSONS JADI ARBB GP...
49 2015-04-30 ICON JCBNEXT BJCORP LEWEKO EKSONS JADI ARBB GP...
50 2015-05-31 ASIAPAC EASTLND MENTIGA ATAIMS BJCORP RESINTC ...
51 2015-06-30 ASIAPAC EASTLND MENTIGA ATAIMS BJLAND RESINTC ...
52 2015-07-31 ASIAPAC MENTIGA BJLAND RESINTC DUTALND PENSONI...
53 2015-08-31 SEACERA GUOCO DAYA SUCCESS TADMAX YONGTAI BJLA...
54 2015-09-30 SEACERA GUOCO DAYA SUCCESS TADMAX YONGTAI MYSC...
55 2015-10-31 SEACERA GUOCO DAYA TADMAX YONGTAI MYSCM UMS PL...
56 2015-11-30 GPHAROS NGGB MYSCM JCBNEXT DAYA INCKEN TIGER T...
57 2015-12-31 GPHAROS NGGB MYSCM HIGHTEC BJLAND JCBNEXT DAYA...
58 2016-01-31 GPHAROS NGGB MYSCM HIGHTEC BJLAND JCBNEXT DAYA...
59 2016-02-29 EMETALL SKBSHUT GETS HIGHTEC BJLAND EFFICEN RO...
60 2016-03-31 EMETALL SKBSHUT GETS SAPIND EFFICEN JKGLAND RO...
61 2016-04-30 EMETALL SKBSHUT REACH SAPIND EFFICEN JKGLAND R...
62 2016-05-31 DRBHCOM REACH SAPIND PARAGON MTRONIC KPS NPC K...
63 2016-06-30 SUBUR DRBHCOM REACH PARAGON MTRONIC KPS JKGLAN...
64 2016-07-31 SUBUR DRBHCOM REACH PARAGON MTRONIC KPS JKGLAN...
65 2016-08-31 SUBUR YKGI ZECON LIONPSIM LBICAP ANNJOO REACH ...
66 2016-09-30 TECGUAN YKGI ZECON LIONPSIM LBICAP ANNJOO REAC...
67 2016-10-31 TECGUAN YKGI ZECON LIONPSIM LBICAP ANNJOO REAC...
68 2016-11-30 TECGUAN EMICO PHB REACH BJASSET ATTA SMCAP KOM...
69 2016-12-31 EMICO PHB REACH ATTA SMCAP GPA BSLCORP CWG LAY...
70 2017-01-31 EMICO HIGHTEC PHB REACH ATTA SMCAP GPA CWG LAY...
71 2017-02-28 CNASIA HIGHTEC UMW MIECO LIONIND SUCCESS REACH...
72 2017-03-31 CNASIA UMW MIECO LIONIND SUCCESS EDEN EMICO ME...
73 2017-04-30 POLY CNASIA UMW MIECO LIONIND EDEN EMICO GUOCO...
74 2017-05-31 POLY ATAIMS BINTAI ACME BJASSET TIGER EATECH G...
75 2017-06-30 POLY ATAIMS BINTAI ACME BJASSET TIGER EATECH G...
76 2017-07-31 ATAIMS BINTAI ACME BJASSET TIGER EATECH GUOCO ...
77 2017-08-31 GRANFLO HUAAN LEWEKO MG LIONPSIM ZECON DWL BAR...
78 2017-09-30 GRANFLO HUAAN LEWEKO MG ZECON DWL BARAKAH MEDI...
79 2017-10-31 GRANFLO LEWEKO HUAAN MG ZECON DWL BARAKAH MEDI...
80 2017-11-30 MULPHA LIONPSIM HARNLEN HUAAN STAR TOYOINK HAR...
81 2017-12-31 MULPHA LIONPSIM HARNLEN HUAAN STAR TOYOINK BPL...
82 2018-01-31 MULPHA LIONPSIM HARNLEN HUAAN STAR TOYOINK BPL...
83 2018-02-28 PRKCORP AMPROP TPC JAKS DBE ALAM TOYOINK WATTA...
84 2018-03-31 PRKCORP SAPNRG AMPROP TPC JAKS DBE ALAM TOYOIN...
85 2018-04-30 PRKCORP SAPNRG AMPROP TPC JAKS DBE ALAM TOYOIN...
86 2018-05-31 SAPNRG HUMEIND OLYMPIA ARREIT JKGLAND ASIAPAC ...
87 2018-06-30 GUOCO MUDA HUMEIND OLYMPIA ARREIT ASIAPAC GUNU...
88 2018-07-31 MUDA HUMEIND OLYMPIA CCB ARREIT ASIAPAC GUNUNG...
89 2018-08-31 COASTAL AXIATA TIGER PEB CCB HTPADU VERTICE EA...
90 2018-09-30 COASTAL AXIATA TIGER PEB CCB HTPADU VERTICE EA...
91 2018-10-31 COASTAL WZSATU AXIATA TIGER PEB CCB AJIYA HTPA...
92 2018-11-30 FGV WZSATU PCCS FLBHD TADMAX ENGKAH AJIYA SWKP...
93 2018-12-31 FGV WZSATU UZMA PCCS FLBHD TADMAX ENGKAH AJIYA...
94 2019-01-31 FGV PCCS FLBHD TADMAX PJBUMI CVIEW SWKPLNT ITR...
95 2019-02-28 THPLANT DBHD ARBB CHUAN HWGB MAYBULK ADVENTA A...
96 2019-03-31 THPLANT DBHD ARBB CHUAN HWGB MAYBULK ADVENTA A...
97 2019-04-30 THPLANT DBHD CHUAN HWGB MAYBULK ADVENTA ARK IP...
98 2019-05-31 HENGYUAN SEB HBGLOB IJMPLNT ARBB MULPHA ASIAPA...
99 2019-06-30 HENGYUAN SEB HBGLOB IJMPLNT ARBB MULPHA ASIAPA...
100 2019-07-31 HENGYUAN SEB HBGLOB IJMPLNT ARBB MULPHA ASIAPA...
101 2019-08-31 DOLMITE PMCORP HENGYUAN ENGKAH PRESBHD ENGTEX ...
102 2019-09-30 DOLMITE PMCORP HENGYUAN ENGKAH PRESBHD ENGTEX ...
103 2019-10-31 DOLMITE PMCORP HENGYUAN ENGKAH PRESBHD ENGTEX ...
104 2019-11-30 FGV KHEESAN DBE DAYANG BONIA NAIM MJPERAK PINE...
105 2019-12-31 SCNWOLF FGV KHEESAN DBE DAYANG NAIM MJPERAK PI...
106 2020-01-31 SCNWOLF FGV KHEESAN DBE NAIM MJPERAK PINEPAC S...
107 2020-02-29 HARBOUR OWG ILB DPS KUB KHEESAN BSTEAD PARAGON...
108 2020-03-31 HARBOUR OWG ILB DPS KUB BSTEAD PARAGON TIGER G...
109 2020-04-30 HARBOUR OWG ILB DPS KUB PENSONI BSTEAD PARAGON...
110 2020-05-31 HARBOUR OWG ILB CNASIA DPS MAYBULK KHIND PENSO...
111 2020-06-30 SMISCOR CNASIA MAYBULK KHIND PENSONI COMPLET A...
112 2020-07-31 SMISCOR CNASIA TAS MAYBULK NYLEX KHIND KPPROP ...
113 2020-08-31 IMPIANA ALLIANZ JERASIA STAR TAS BJASSET TCHON...
114 2020-09-30 SEACERA ALLIANZ JERASIA STAR TAS BJASSET TCHON...
115 2020-10-31 SEACERA ALLIANZ JERASIA STAR BJASSET TCHONG MS...
116 2020-11-30 SWSCAP DBE JERASIA MSC CNI HARNLEN DPS TSRCAP ...
117 2020-12-31 SWSCAP DBE MBSB MSC CNI HARNLEN DPS TRC SIMEPR...
118 2021-01-31 SWSCAP DBE MBSB EUPE MSC CNI HARNLEN DPS PENER...
119 2021-02-28 DBE SWSCAP GMUTUAL AYS LATITUD PPG MRCB ITRONI...
120 2021-03-31 DBE PRKCORP AYS LATITUD MJPERAK PPG MRCB ITRON...
121 2021-04-30 DBE PRKCORP AYS LATITUD MJPERAK PPG MRCB SASBA...
122 2021-05-31 PRKCORP AYS PPG MJPERAK MRCB SASBADI IJMPLNT I...
123 2021-06-30 AYS PPG SASBADI BREM COASTAL MHB YTL ICON TITI...
124 2021-07-31 AYS BREM COASTAL YTL ICON TITIJYA AMEDIA CYMAO...
125 2021-08-31 GLBHD COASTAL BHIC SCABLE SHCHAN YTL EMETALL A...
126 2021-09-30 PRTASCO GLBHD AAX MPCORP MTRONIC BHIC SCABLE S...
127 2021-10-31 PRTASCO GLBHD AAX MPCORP MTRONIC BHIC SCABLE S...
How Does It Look in Real Life?
With the stocks that we picked, let’s run the numbers to see how much RM1000 capital invested will grow.
Maximum return : 145.3678663108833
Maximum retreat : 78.13646022905483
Average return : 101.15013712494064
CAGR : 21.124786717204923
Winrate : 0.5859375
Conclusion
- KYY’s golden rule offers superb performance with 21% cagr, with 58% win rate
- Backtesting result shows capital grew from RM1k to RM8k in 10 years
- The stock pick rules used are very mechanistic, Mr Koon Yew Yin might not follow this rule blindly, as investing is more to art than science, but this serves as a reference on how this strategy will do
This is not a trading advice and the studies and analysis done were for educational and sharing purposes only
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klsequant | Where are the bulls and bears hiding? an Analysis of over 10 year timeframe
Created by klsequant | Mar 10, 2022
Discussions
Be the first to like this. Showing 9 of 9 comments
(1) How do you determine the top 10?
(2) Would you not get a more accurate figure if you invested say 1000 every month? since the portfolio changes every month, it would be more accurate to assume 1000 every month.
(3) How many counters are bought every month? there's 8 in the truncated list, can we assume 10? to optimise brokerage, suppose 0.1% brokerage and Rm8 minimum, Rm8000 should be invested every counter.
So now we're looking at 10 counters, which is an investment of Rm80,000 a month, which is really nice if you have a million a year to invest. At the end of ten years you'd have invested Rm9.6 million.
Even at 1% brokerage, it's Rm8000 a month, Rm96000 a year. After 10 years you'd have invested Rm960,000.
I think this strategy only works well if you have infinite capital and can just keep buying and buying and buying every month.
2022-02-07 10:41
kyy is an expert here.
Mr John is also an expert here.
We can never go wrong if we follow them !
2022-02-07 12:46
Everyone know KYY will buy first before he start to promote.
And when he already sold high and start to buy back low he will tease you for buying high from him and dare you to sell to him low.
2022-02-07 12:53
I suspect KYY is quietly buying the plantation counters and some O&G stocks like Hengyuan and PetronM because these stocks fulfill all the criteria he set. Like Sslee said he won’t tell you until he accumulated good position. Hehehe…
2022-02-07 13:00
kyy got some secret invincible moves behind his back which no one knows
how to defeat him ?
2022-02-07 13:02
It appears our Mr John got the skill of demystify those secret invincible
moves of our expert kyy ?
2022-02-07 13:05
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abang_misai
Haha.
2022-02-06 16:52