Dear Fellow Investors,

Once again, we will discuss on the topic on share price again. And of course, this time its one of my favourite company - ARB BERHAD (7181). So some investors actually contacted me amidst the panic of why the stock price is dropping from RM 0.300 ish to RM 0.260. So here's my answer:

Ever heard of the toilet roll investment theory?

Let's say if this toilet roll were to sell at RM 10 per roll, assuming if the price dropped to RM 5 without change in its quality, would you buy more to stock (especially during the COVID-19 pandemic? UK is stocking up toilet rolls again) or would you prefer to buy in RM 10? I believe at this kind of time, "value investors" like housewives knows the best. 

So, in simpler terms - would you buy something of a certain value (say RM 10) for a cheaper price of RM 5, or at a premium of RM 15? I believe the answer is obvious..

But when it comes to share investments, why are people buy shares when they are expensive, sell when its cheap? What is this madness behind the thought of doing so?? Well, I'm sure that's not the right way of investment. Buying when a share is cheap and selling it when its priced at premium is the simplest and easiest way to profit. For example, I bought AEONCR when its around RM 9 or so, so whats the price now? You know it..

The key value I would like to share here is, buy low and sell high essential means buy "lower" than its value, and sell "higher" than its value. As for ARBB, I've shared numurous times that the company is at least worth RM 0.500 or above.. So are you buying toilet roll at discount, or you want to chase it at premium? Its completely up to you! :)

Cheers and I wish your investment journey bodes well for you.