Icon8888 Gossips About Stocks
(Icon) My 2017 New Year Resolution - Stick Strictly To KYY's Golden Rule
2017 will arrive in a few more days.
These few weeks, I have been busy cleaning up my portfolio. US will have a new President on 20 January 2017. So far, this guy has been quite erratic, saying a lot of crazy things that send shiver down my spine. I want to free up some capital just in case there is a major sell down and I can bargain hunt.
As I review my portfolio, I notice a pattern : those stocks that I bought following KYY's Golden Rule, I am very reluctant to sell even though in the face of uncertainties introduced by Donald Dumb.
On the other hand, those stocks that do not comply with KYY's Golden Rule, I find them really hard to keep. Every time there is any sign of trouble with the market, I keep thinking of hiving them off.
One good example is Canone. I bought the stock after it released strong set of result in recent quarter out of itchy fingers. The stock does not really comply with KYY's Golden Rule. I finally disposed of it few days ago.
Did I regret buying into Canone ? Yes, I did. On hind sight, the purchase was an unnecessary transaction. It does not fit into my investment philosophy. The buying and selling resulted in unnecessary losses.
Bad !!!
I vow that in the coming year, every time before I press the Buy button, I will ask the question : Does This Stock Comply With KYY's Golden Rule ? If the answer is NO, I should not proceed.
Specifically, I would like to avoid buying into a stock because "it looked like already reached rock bottom. Just buy and hold for few years, sure can make money". No profit growth no talk !!!
I believe adhering to this principle will help me to avoid unnecessary trading (bad news for my Remisier) while at the same time, buying into stocks that give me peace of mind. My experience so far is that every time I have peace of mind, I will be able to hold on to the stock for long term until it deliver a satisfactory return.
This is my 2017 New Year Resolution.
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Discussions
7 people like this. Showing 50 of 90 comments
Bro Icon, Bro CharlesT (murali reborn), happy new year !!!
Bro Icon, special thanks to all your tips and blogs, really helpful, i have a good 2016.
2016-12-30 21:10
Buy only when they get margin calls
:)
See Mycron can rebound so fast and furious which you will most likely took years to make this much gain in a short term.
2016-12-30 21:16
As New Year is approaching, just bear in mind your own investment objectives, your risk tolerance, your own foresights on the companies you intend to investment your hard earned monies, what and why if scenarios, your time horizon for your investment, etc before putting your monies into the stocks....................no need to follow strictly those Gurus but you can learned the ways they mastered the markets and think out of the box based on your attitude and temperament.
2016-12-31 11:04
Posted by Icon8888 > Dec 30, 2016 10:02 AM | Report Abuse
I have always been using KYY Golden Rule. It is just that I am not disciplined to do it 100% of the time. Sometime I buy sell without following that rule (for fun). Now I am saying that I should reduce or limit my NON KYY Golden Rule activities
Mr Icon, you mean non KYY Golden Rule investment method does not work ?
All this while, i am reading investment books and i find the best is margin of safety method of investment .
Please explain so that i can learn.
2016-12-31 12:52
get a margin account ready and loot next time.
PlsGiveBonus > Dec 30, 2016 09:16 PM | Report Abuse
Buy only when they get margin calls
:)
See Mycron can rebound so fast and furious which you will most likely took years to make this much gain in a short term.
2016-12-31 12:58
Mr Stockmammy, you must be joking. My uncle a financial director told me not to use margin when invest.
He says margin make alot of people lose alot.
2016-12-31 13:01
the authors of foreign books play in the largest ocean, have unlimited capital , patience and hundreds of stocks.
We play in a small lake with limited capital and only few stocks in portfolio.
Posted by gohku > Dec 31, 2016 12:52 PM | Report Abuse
Please explain so that i can learn.
2016-12-31 13:02
the dictum always applies, risk = reward.
Your uncle is prevention focused. My uncle Koon is Promotion focused.
gohku > Dec 31, 2016 01:01 PM | Report Abuse
Mr Stockmammy, you must be joking. My uncle a financial director told me not to use margin when invest.
2016-12-31 13:04
Margin of safety and KYY Rule does not contradict each other. They can co exist. KYY's Rule forces you to focus on two things : (i) timing of approximately 6 months to one year. That reduces the risk of bad visibility (ii) Earning. He is saying that great emphasis should be put on future EPS instead of all kind of other things.
You can follow his rule, and then add on your own Margin of Safety cretirias to make your investment even more safe, if that is what you want.
gohku Posted by Icon8888 > Dec 30, 2016 10:02 AM | Report Abuse
I have always been using KYY Golden Rule. It is just that I am not disciplined to do it 100% of the time. Sometime I buy sell without following that rule (for fun). Now I am saying that I should reduce or limit my NON KYY Golden Rule activities
Mr Icon, you mean non KYY Golden Rule investment method does not work ?
All this while, i am reading investment books and i find the best is margin of safety method of investment .
Please explain so that i can learn.
31/12/2016 12:52
31/12/2016 13:13
2016-12-31 13:14
My uncle, told me that he had seen many of his well very to do businessman friends, bankrupt because use margin to invest.
Stockmarket is not a place to gamble with margin.
2016-12-31 13:14
Margin of safety and KYY Rule does not contradict each other. They can co exist. KYY's Rule forces you to focus on two things : (i) timing of approximately 6 months to one year. That reduces the risk of bad visibility (ii) Earning. He is saying that great emphasis should be put on future EPS instead of all kind of other things.
You can follow his rule, and then add on your own Margin of Safety cretirias to make your investment even more safe, if that is what you want.
Thank you Mr Icon, that mean margin of safety and Golden Rule is not mutually exclusive, we can do both.
That is Great.
2016-12-31 13:17
icon is ever the diplomat.
but in my dictionary, the margin of safety is illusionary, a sleeping pill.
2016-12-31 13:27
Gohku, margin is nothing as evil as what your Uncle told you. I have been using it for more than 20 years. Never kena margin call. It enhances your ROE. Good stuff.
You should learn to use it, but maybe at a later stage. You sound very new to the market, I think you might not be ready for margin.
Posted by gohku > Dec 31, 2016 01:14 PM | Report Abuse
My uncle, told me that he had seen many of his well very to do businessman friends, bankrupt because use margin to invest.
Stockmarket is not a place to gamble with margin.
2016-12-31 13:29
your uncle's friends who went bankrupt were either gamblers or sochais, that is all I can say
2016-12-31 13:31
Margin is risky....stock mkt is risky...if they r not yr cup of tea buy property or keep money in yr piggy bank
2016-12-31 13:46
Driving is also risky...many killed in road accidents...take bus safer or stay at home
2016-12-31 13:47
agreed
KYY got margin call earlier this year, but the margin calls only forced him to realise some unrealised profits.
Icon8888 > Dec 31, 2016 01:31 PM | Report Abuse
your uncle's friends who went bankrupt were either gamblers or sochais, that is all I can say
2016-12-31 13:47
errr... Disagree with KYY as example
As a matter of fact, he is horrible the way he uses margin. I think he geared up super super high until when price drop 20 sen, he need to force sell
My margin is different. At most, my margin is 30% to 50% of my own equity. And everytime I geared up, I make sure there are liquid stocks for me to exit just in case of emergency
2016-12-31 13:51
I never got margin call. Not only that, I am not once CLOSED to being margin call. I am always very very far away from the red line. I managed my margin facility very carefully.
2016-12-31 13:53
If margin call deposit some money or sell some shares...not the end of the world..
2016-12-31 13:56
Ya, just make sure you have liquid stocks in your portfolio to facilitate emergency evacuation.
Once you take care of that, there is nothing to fear about margin
2016-12-31 13:58
Of course, it is understood that if you use margin to load up sumatec, Asdion, etc , you are seeking death
2016-12-31 13:59
(Posted by Icon8888)
My margin is different. At most, my margin is 30% to 50% of my own equity. And everytime I geared up, I make sure there are liquid stocks for me to exit just in case of emergency
ME: That's interesting to check for the impact by entry differrent margin weight.
2016-12-31 14:00
Buy lousy stock n never cut loss somemore wanna give it to grandchildren....
2016-12-31 14:01
Cpteh sounds more like add maths teacher...murali was my schoolmate..however he passed away few months ago....
2016-12-31 14:09
icon8888 bro, has u been following VIS.
Or u might have any materials to share about VIS ?
I find very limited news disclosed despite they are making very impressively results.
2016-12-31 14:16
KYY uses unrealised profits to buy other shares.
In theory, there is no limit to his margin account as long as his shares keep going up.
2016-12-31 14:22
Anyway many lost badly in 1998 due to their heavy position of second board counters which were highly illiquid. Saw many second board co limit down all the way from rm10+ to penny stocks within days n then eventually suspended n delisted. Saw few uncles went broke...
2016-12-31 14:25
other than Xing Quan, there is no evidence KYY ever buys speculative shares with no substance.
His selections are liquid, best in its class ( sector ). Liquidity is very important.
Icon8888 > Dec 31, 2016 01:59 PM | Report Abuse
Of course, it is understood that if you use margin to load up sumatec, Asdion, etc , you are seeking death
2016-12-31 14:27
Hi icon, i intend to get a margin acc as well. May i know what brokering firm r u using? Some of the platforms r confusing on $ n margin.
2016-12-31 15:22
margin of safety...100% ikut.....margin account- no way nak ikut kyy...cun cun nak mati cepat kalau ikut kyy...kalau ikut kaedah kyy yang semakin nyanyuk boleh menempah maut dan mengalami kerugian besar...bila-bila masa saham boleh jatuh macam xinquan dan jaya tiasa kalau terlampau yakin...kaedah yan lebih selamat dan konservatif ikut cara warren buffetts...ada jaminan sebab ikut "margin of safety method".....setiap tahun dapat gaji dari saham dividen dan peningkatan nilai saham...."Selamat menyambut tahun baru 2017"......
2017-01-01 00:20
margin of safety...100% ikut.....margin account- no way nak ikut kyy...cun cun nak mati cepat kalau ikut kyy...kalau ikut kaedah kyy yang semakin nyanyuk boleh menempah maut dan mengalami kerugian besar...bila-bila masa saham boleh jatuh macam xinquan dan jaya tiasa kalau terlampau yakin...kaedah yan lebih selamat dan konservatif ikut cara warren buffetts...ada jaminan sebab ikut "margin of safety method".....setiap tahun dapat gaji dari saham dividen dan peningkatan nilai saham...."Selamat menyambut tahun baru 2017"...
I like to clarify Xinguan and Jaya Tiasa, KYY had not discover Golden Rule yet.
2017-01-01 00:24
I would like to wish kyy a successful new year. May you and your family be well and happy always.
2017-01-01 00:49
of course, no doubt that investors like earning growth, but it must be coupled with good fundamentals too... in case the growth did not turn out as expected, the share price will not be affected much too
2017-01-06 15:53
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
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Lol
2016-12-30 21:07