kcchongnz blog
How to lead a comfortable retirement life through investing in the stock market? kcchongnz
How to lead a comfortable retirement life through investing in the stock market?
“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.” Robert G. Allen
Yes, you can become rich, or at least can lead a comfortable retirement life, if you save and invest wisely in the share market. Warren Buffett knew this secrete when he was a very young man. He said,
“I always knew I was going to be rich. I don't think I ever doubted it for a minute.”
How I wish I could think like him and did what he was doing, not only invest but invest in the right way, when I was a young man. If one doesn’t invest the right way but by simply listening to rumours and punt on hot stocks, instead of building wealth for retirement, can end up a pauper as what is described in my recent post below.
http://klse.i3investor.com/blogs/kcchongnz/59866.jsp
Warren Buffett is the third richest man in the world now with a net worth USD 67.7 billion. There are many other super investors who have consistently making extra-ordinary return from the market over a long period of time. Below are some of them with their incredible investing records:
- The Super Investors of Graham and Doddsville; Warren Buffet, Charles Munger, Walter Schloss. Tweedy Browne, Bill Ruane and many others
http://klse.i3investor.com/blogs/kcchongnz/50988.jsp
- Greenblatt and his Magic Formula
http://klse.i3investor.com/blogs/kcchongnz/51631.jsp
Other super investors include Peter Lynch, Philip Fisher, Seth Klarman, Julian Robertson, Sir John Templeton, Robert Arnold, Howard Marks, and our ColdEye 冷眼etc. Notice that all those who have made extra-ordinary returns from the market above followed the fundamental approach in investing for long term and they have all the records to show?
My personal experience
As I have mentioned above how I wish I had started young like what Buffett did. But it is always better late than never, isn’t it? Moreover, I am not aiming to be super rich like anyone of them, but just to have a more comfortable retirement life.
I have two portfolios “officially” put up in i3investor. As at 14th September 2014, the first one put up in 22nd January 2013 has returned an average of 95.8% against the broad market of 16.7% of the same period. The second one put up on 1st August 2013 after the General Election has returned an average return of 84.8% against the 4.7% of the broad market. They are old stories and anyone interested can read from the link below:
http://klse.i3investor.com/blogs/kcchongnz/56926.jsp
http://klse.i3investor.com/blogs/kcchongnz/56937.jsp
I must say that the good records as shown in my portfolio return of duration up to 20 months only may be too short a time to claim victory. What about since then, what other picks I have made from based on the fundamental approach in investing, and what are the outcomes?
My recent picks
I started my new pick on Prestariang on 30th November 2013 when it was traded at RM1.25 and KLCI was at 1813. Nine and a half months have passed and it is trading at RM2.05 at the close on 12th September 2014. With the dividends included, the return is 68%.
Subsequently 14 other stocks including two company warrants were selected in the new portfolio as tabulated in the appendix. All the picks in the portfolio were published in i3investor with detail analysis as before. The average total return is 17.5% with a median return of 10.3% compared to the return of 2.4% of the broad market during the same period. The reference prices shown are at the time I published my post in i3investor. Figure 1 below shows the return of individual stock and the average portfolio return compared to KLSE.
For me I am quite happy with this return, especially there is no loser except for a minor loss of -0.3% for Plenitude which I put up just 10 days ago. Yes, the trick in investing is to take care of the downside and let the upside takes care of itself. Avoid the lemons and the good stocks will provide you with satisfactory return.
Conclusion
To build long term wealth for buying a house, children’s education and a comfortable retirement is a serious matter. It is certainly one of the top priorities in my life, no matter how busy I am in other things. I hope it must be one of your goals too. Trying to do that is not an easy by listening to hot tips and rumours as we stand no chance in speculating against the insiders, manipulators, the investment bankers, remisiers, institutional investors, analysts etc who have all the resources; money, computer and software power, information, etc.
Yes, you need a strong investing foundation in order to have a better chance to survive and thrive in the market. Those who are interested to join me in this starting point of your life-long journey of learning and investing, please email me at
No, it is not a course that will promise you the return of the above portfolio, rather a promise that you will learn something useful for your future investing experience, of how to fish on your own.
For those who have given your email address to me the last two days, please be informed that I will keep you posted soon.
Tis goeth down to a fundamental aspect that “An investment in knowledge pays the best interest” Benjamin Franklin
K C Chong (16th September 2014)
Appendix
Table 1: New Portfolio Return
|
Stock |
Ref Price |
Dividend |
Price now |
Total return |
|
Kuchai |
1.20 |
0.00 |
1.44 |
20.0% |
|
Prestariang |
1.25 |
0.05 |
2.05 |
68.0% |
|
Perak corp |
3.69 |
0.085 |
3.62 |
0.4% |
|
Magni |
2.63 |
0.05 |
3.05 |
17.9% |
|
Latitude |
2.57 |
0.00 |
3.68 |
43.2% |
|
MFCB |
2.24 |
0.045 |
2.27 |
3.3% |
|
Padini |
1.75 |
0.055 |
1.89 |
11.1% |
|
Pintaras |
2.95 |
0.05 |
4.50 |
54.2% |
|
Scientex |
5.74 |
0 |
6.54 |
13.9% |
|
Tasco |
3.15 |
0 |
3.45 |
9.5% |
|
MRCB Wa |
0.275 |
0 |
0.280 |
1.8% |
|
BIMB W |
0.660 |
0 |
0.665 |
0.8% |
|
Plenitude |
3.15 |
0 |
3.14 |
-0.3% |
|
Tong Her |
2.35 |
0.06 |
2.3 |
0.4% |
|
Average Return |
xxxx |
xxxx |
xxxx |
17.5% |
|
KLSE |
1813 |
xxxx |
1856 |
2.4% |
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Discussions
9 people like this. Showing 32 of 32 comments
Kevin,
to tell you the truth. When I fist started investing, even after investing for more than 10 years, I loss money most of the time. That was because I did not have the necessary knowledge and experience.
I am glad to say that that is the past. My return in the last 5 years plus is very closed to what I have shared with you so far in this website on my first portfolio put up in January 2013, though some of the stock holdings have generally changed.
But bear in mind that this 5 years have been very kind to most investors anyway.
2014-09-16 20:11
Thanks KC for sharing. Wishing you success & prosperity in your investments.
2014-09-16 21:09
Hi KCChong, no doubt that Kuchai is a fundamental sound company with a financial ratio and intrisic value of Rm 5.5 based on book value and EPS. I am just wondering whether the consistency of earning per share every quarterly as well important? From what i have observed this company, the EPS is not always positively consistent and how will it impact the quality of price of this stock? Other issue is what will the impact when GST implement next year as this company income resource from leasing of properties?
2014-09-16 21:36
Many thanks for those useful info you've posted. I somehow found out you haven't include INSAS in your portfolio just posted. Please comment. Pardon me if i'm wrong. Thanks again.
2014-09-16 22:24
Hi KC I am new in the world of shares investing.
What is your advise to me if i am to invest in hohup, knm and unisem now..thanks
2014-09-16 22:55
http://klse.i3investor.com/blogs/kcchongnz/58905.jsp
Why not included above?
Maybank-C6. 10.5sen date recommended now 8sen. Furthermore we are asked to bet RM100,600 not small amount.
2014-09-16 22:55
KC, thanks for your sharing, i enjoy all of your postings not to mention i learn a lot from your postings.
2014-09-16 23:10
Posted by nsyee28282828 > Sep 16, 2014 10:55 PM | Report Abuse
Hi KC I am new in the world of shares investing.
What is your advise to me if i am to invest in hohup, knm and unisem now..thanks
I'm not Kc but sure can help u a bit here. I dunno about the other 2 stocks u mentioned but am pretty familiar with KNM. First let me ask u whether u know who is General 'Wolf' Lee or not? if u do not know u better go to KNM thread n read from page 1 to the current page. based on previous experience when 'investing' in KNM ( LOL investing to those brave hearts there but for me I call it SPECULATING or worst GAMBLING LOL) after a while u will foam in your mouth,then feeling pening n followed by pengsaning ( at this stage u will likely be very disoriented) then last stage will be jumping of the building coz u will lose so much money until you will not remember your parents name. Then u will no longer be here n your nick will be changed to nsyee166444444. Since u're new n have some $$$ u might as well learn from the man itself by attending in his course - after all you're gonna burn your $$$ in KNM why not use it to improve your knowledge. That my fren will be the best advice u will get FOC not to mention that some day you will be richly rewarded in knowledge n also wealth. when that happen dun forget to do some charity work :)
2014-09-16 23:21
Posted by AyamKFC > Sep 16, 2014 10:55 PM | Report Abuse
http://klse.i3investor.com/blogs/kcchongnz/58905.jsp
Why not included above?
Maybank-C6. 10.5sen date recommended now 8sen. Furthermore we are asked to bet RM100,600 not small amount.
Excellent comment. But let me ask you some questions about my post.
1) Is the post an educational or a recommendation to punt?
2) Where is the specific "recommend" you are talking about?
3) Where is the phrase I used to ask you to bet RM100,600?
4) Did I say you "invest" in C6, or "punt"?
5) Do you know why I specifically use the term mentioned?
6) Did I emphasize on financial risk management or speculation?
7) do you understand what I wrote< anyhthing at all?
2014-09-17 02:14
Good morning kcchongnz- am very interested in your said course on investing for long term. May I know how much is fee charged? Thank you.
2014-09-17 04:27
One investment grade counter which is overlooked is Westport.
Maybank give TP 3.30
TA give TP 3.48.
2014-09-17 07:37
Posted by emperor > Sep 16, 2014 09:36 PM | Report Abuse
Hi KCChong, no doubt that Kuchai is a fundamental sound company with a financial ratio and intrisic value of Rm 5.5 based on book value and EPS. I am just wondering whether the consistency of earning per share every quarterly as well important? From what i have observed this company, the EPS is not always positively consistent and how will it impact the quality of price of this stock? Other issue is what will the impact when GST implement next year as this company income resource from leasing of properties?
emperor, good comments. Just to make a couple of comments to your post:
1)Kuchai definitely doesn't worth RM5.50, no matter which way you look at it.
2)The value of Kuchai doesn't come from its earnings power, but on its quality assets value. So earnings stability is not what we should look at, but assets value. You are encouraged to read my post here:
http://klse.i3investor.com/blogs/kcchongnz/45296.jsp
I was talking about two investment thesis on Kuchai
a) Negative enterprise value
b) Net current asset value
These are proven investment strategy. You can also learn about them if you join my course.
3) Its property is in Singapore. So I don't think apa ini GST implemented next year is irrelevant. Anyway, its income from this only business is peanut for them.
2014-09-17 09:54
Posted by tsy88 > Sep 17, 2014 04:27 AM | Report Abuse
Good morning kcchongnz- am very interested in your said course on investing for long term. May I know how much is fee charged? Thank you.
Send me a email.
2014-09-17 10:02
Posted by Aba Saw > Sep 16, 2014 10:24 PM | Report Abuse
Many thanks for those useful info you've posted. I somehow found out you haven't include INSAS in your portfolio just posted. Please comment. Pardon me if i'm wrong. Thanks again.
Yeah, I talk about Insas in a net current asset value somewhere but I haven't found it. May be you could let us know which post of mine was that.
Insas at RM1.23 is damn cheap, also looking from its quality asset wise. Don't know why it can't move. Probably investors don't like the preference share proposal. But it comes with "free" warrants. How come this doesn't appeal to investors like it normally do. May be investors don't like this preference share thingy as it has so much cash, why does it need this preference share issue?
But the point is, it is damn cheap.
2014-09-17 10:18
Posted by nsyee28282828 > Sep 16, 2014 10:55 PM | Report Abuse
Hi KC I am new in the world of shares investing.
What is your advise to me if i am to invest in hohup, knm and unisem now..thanks
I tell you nsyee28282828, few people know KNM better than Frank Soweto. I guess it is best to listen to him on this. He is the best on KNM.
Regarding Hohup and Unisem, I also don't know as I don't follow them. But actually you would be able to judge by yourself, and is best to judge by yourself, once you have learned some fundamentals of investing.
Seriously if you want to be successful in investing, you must know how to read financial statements, and do some valuations. This is the language of business, as you invest in stock, you invest in part of a business.
2014-09-17 10:51
I'm a KC student, glad to be his student & great to be his first batch student! what I can say is I really benefited from his course. He inspire you, entertain you (with winning stocks), and you end up learning tons of knowledge even in short period of time and you will be able to pick your own winning stocks! Cheers
2014-09-17 14:02
Posted by CCCL > Sep 17, 2014 10:40 PM | Report Abuse
Hi KC, can Fiamma becomes winning stock. Thank you in advance.
Fimma I think is good. but that is a very superficial statement. Value investors don't know everything. They have to do a lot of work such as read the annual report, understand its business, study its past performance, gauge its future, try value it etc. Mind you, there are hundreds of companies in Bursa.
But you would be able to do it once you have learned the fundamentals, do on almost any company you are interested in, but that also will be limited to your circle of competence too.
I don't know Fimma detail enough to give an opinion.
2014-09-18 05:36
Hah ! KCChong, this is good one. But you have forgotten. almost all here are contra player or short term player. longterm investment, build strong investing foundation etc is not in their dictionary !! Only after they have got burnt, then maybe, maybe only, they will start to talk about longterm investment, build strong investing foundation bla bla bla....
2014-09-18 10:06
Posted by fortunebullllz > Sep 18, 2014 10:06 AM | Report Abuse
Hah ! KCChong, this is good one. But you have forgotten. almost all here are contra player or short term player. longterm investment, build strong investing foundation etc is not in their dictionary !! Only after they have got burnt, then maybe, maybe only, they will start to talk about longterm investment, build strong investing foundation bla bla bla....
"Hah ! KCChong, this is good one"?
I think I know what you mean by your this statement above. But let me tell you you are wrong again. I don't do things like this. I don't need to.
I notice you used to write a lot and you have a lot of followers. Surprised you have a total of only 38 posts? It is more like 38000 posts I thought. the following is one of your recent posts in Hovid thread.
[Posted by fortunebullllz > Aug 8, 2014 10:08 AM | Report Abuse
I collected when it is 15cen. How's that! sound like bull story?]
Yes, you are the one forumers who want to get rich here must follow. Hovid is trading at 40.5 sen now! I just want to let others know, this is not the only fantastic call with the incredible result, you have made tons of them. Bravo.
No, I haven't forgotten "almost all here are contra player or short term player" as you mentioned in your post. There are many who really want to build up long-term wealth. They know there is no other way which gives them better probability of achieving that. For your information, the response of the course is immense. That is why I do not have to do what you think I am doing.
2014-09-18 11:01
Frank - I always like and enjoy reading your comments, particularly on KNM and General Lee. Like KC, no one knows KNM better than your good self. Have a pleasant week-end. Hope you can join us for a meal next time.
2014-09-20 19:43
tsy88 - saw your posting here. I would strongly recommend that you learn from KC. It will definitely put you in a better footing in making profits from the market, albeit on a longer term basis. More importantly you will be able to gain immense FA knowledge from his coaching as what SS661 mentioned.
2014-09-20 19:46
Hi Invest88, thanks for the kind words always n hope all is well with you :) Kc is being too complimentary on me on KNM :) yes I do know about the modus operadi of General 'Wolf' Lee and unfortunately found out the hard way :( but better late than never :) However, when it comes to doing a complete forensic CSI shenanigans on the data of KNM FA Kcchongnz is the best :) dun forget that we're ( well I should put it more appropriately as the punters or gamblers) dealing with one of the most savvy,creative n brutal CEO in bolihland. General 'wolf' Lee is already one of the richest in bolihland despite his share dropping from 10 bucks to present. no need to keep contributing to him. when you even THINK of whether to 'invest' in KNM u might as well use the $$$ to learn from KC as you have absolutely NO FA knowledge at all. I'm sharing this coz when I first came to i3 some very kind people pointed me the right direction to invest n if me who dun even buy the flavors of the day or hardly ever punt on speculative shares can be crushed by the Big Bad General ( bought KNM solely becoz 9/10 research houses had a strong recommended buy n also epf was substantial holder - does it sound familiar now :) )I do not see any hope of survivors. sure you can win some punts especially now that market has been bullish for a few years but if you keep punting on all these speculative ones sooner or later it will catch up n u will kena kaw2.
Like u mentioned above to tsy88 the small money spent on Kc's course will be the best ever lesson you'll have when it comes to FA investing. if you're new n do not know Kc or even doubt whether he is the real deal n worry about the small fees - very easy my fren - just read his postings from the first page onwards (must make at least some effort la n dun expect to be successful if forever sitting waiting to be fed) - guarantee u will learn a lot from his postings :) after that u can decide :) let me warn u here first - this KC is also a golf addict n before he decide to retire on to the course u better act fast - opportunities like this do not come very often. I might sound like i'm promoting his course LOL- he definitely does not need it - but for me I always have the highest respect n admiration for the very few good people here n KCchongnz is definitely one of them. oh by the way thanks much in advance for your invitation - if I have a chance I sure will :) Likewise if you're in this part of the world pls contact me :) hope you will have continue success investing in many many more years to come :) cheers
2014-09-23 04:34
may I know is MFCB still good? Base on FA the pass record is good, but the contracts on hand is going to expire.....so future is good? how to predict future
2014-09-23 17:17
Frank - absolutely agree with all that you said and thanks. Yup, KC is indeed a golf addict but unfortunately I am not. All I can do is to bring him for some good food. I too wish that you continue to reap gains from the market. I am just a small player and often contented with earning some money for beers and whisky. Cheers !
2014-09-23 18:58
Posted by fusing79 > Sep 23, 2014 05:17 PM | Report Abuse
may I know is MFCB still good? Base on FA the pass record is good, but the contracts on hand is going to expire.....so future is good? how to predict future
"how to predict future"?
How I wish I could do that! By the way, nobody can predict the future in the of the company. If he says he can, go far far away.
Investment bankers, professional analysts can sort of make some guesses by studying the macro, the industry, the company, interview the company management, its consumer etc, but that is still just a guess. Anyway, not sure the majority of them even do those things or not, which they should.
Unfortunately research has shown that the "guesses", even by the professionals, are normally out by a fair bit most of the time.
My personal experience shows although investing must be forward looking, sometimes the rear mirrors can help a lot.
"History does not repeat itself, but it rhymes" Mark Twain.
So do learn how to read annual reports, and have a feel of value.
2014-09-24 18:32
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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....
Kevin Wong
Awesome KC Chong! Care to share with us on the kind of returns you have achieved since you started investing?
2014-09-16 20:01