“Tell me who your heroes are and I’ll tell you who you’ll turn out to be.” Warren Buffett
I have been following the core principles and methodologies of investing propagated by the true super investors in the United States in the link below.
http://klse.i3investor.com/blogs/kcchongnz/88007.jsp
These core principles and methodologies are summarised as below:
These core principles and methodologies in fundamental investing have proven to work very well as shown in the chart of annual excess return over and above the return of S&P 500 by various fundamental value investors at various investment periods below:
The chart above shows Warren Buffett has an annual excess return of about 13%, or an absolute annual return of about 25% over a 55 years’ periods, while Joel Greenblatt of the Magic Formula Investing fame has an annual excess return of about 30%, or an annual absolute return of about 42% over a period of more than 20 years.
I knew these core principles and methodologies of fundamental investing would work for me investing in Bursa. As the new year approaches, it is time to review how well they have worked for me in this mid-term horizon.
This also serves a purpose that I am not bullshitting, that I have established records to show, not necessary implying I have made tons of money, or trying to mislead anybody in this largest investment forum for Bursa, but merely to prove that those core principles and methodologies work not only in the US and around the world, but also work very well in Bursa. Hopeful critic like the one below can be enlightened.
[Posted by koonthebest > Oct 20, 2015 01:48 PM | Report Abuse
empty tong PONG PONG PONG! where your bursa statement! PONG PONG PONG response got lah!
please post the bursa statement past 3-5 years.unless proven to be real, his writing and analysis can be justified rubbish.]
So far, Tan Kian Wei, one of the major contributors in i3investor has put up two official portfolios of mine in i3investor in 2013 which have reasonably long duration, one in January 2013 as “GE 13 Watch – kcchongnz”, and the other on August 1 2013 named “Stock Pick Challenge 2013 2H – kcchongnz”. They can be viewed from these links below.
http://klse.i3investor.com/servlets/pfs/13147.jsp
http://klse.i3investor.com/servlets/pfs/19386.jsp
At that time, there were only 2 i3investor forumers participated in these two “challenges”; myself and Ooi Teik Bee, who uses technical analysis in his stock selection.
I have provided detail analysis on the stocks chosen and their investment thesis in i3investor following the links above. I always feel sharing the process of the stocks selection is more meaningful, rather than telling how much I have made after the share prices have gone up.
The link below shows the outcome of my usage of the core principles and methodology of fundamental investing which I have described about.
http://klse.i3investor.com/blogs/kcchongnz/78390.jsp
GE13 Watch
Table 1 in the Appendix shows the performance of the stocks and the portfolio for the 2 years and 11 months’ investment period for “GE13 Watch” as at to date.
During this period, the broad market has gained 5.7%. All 10 stocks in the portfolio have positive total returns which varies from 0% for Pantech to 517% for Prestariang. There is not a single stock which loses money, absolutely none. Pantech is the only stock which under-performed the market, by just a small margin. The average return of the portfolio is 134%, beating the broad market by a whopping 128%!
The total return is equivalent to a compounded annual growth rate (CAGR) of 34%. RM100000 invested less than three years ago has grown to RM233500, compared to just RM105700 if invested in the broad market.
Four out of the ten stocks have triple digits return; Prestariang at 517%, SKP Resources at 339%, Pintaras at 203%, and NTPM 106%.
Investing following the core principles and methodologies of the super fundamental investors for the above portfolio has shown that it has yielded superb return, and with very low risk as evidenced from the lack of a single loss making stock.
Is the superb return of this portfolio using those core principles and methodologies of fundamental value investing an exception?
Stock Pick Challenge 2013 2H
Table 2 in the Appendix shows the performance of the stocks and the portfolio for the 2 years and 5 months’ investment period for “Stock Pick Challenge 2013 2H”.
During this period, the broad market is practically flat as shown. However, eight out of eleven stocks, or 73% of the stocks in the portfolio have positive total returns which varies from a minimum of 20% for Tienwah to 565% for Datasonic. The average return of the portfolio is a whopping triple digit of 120%, beating the broad market by the same magnitude.
There are only two stocks which under-performed the market; Daiman at -6.9% and Kumpulan Fima, by just a small margin of 2.2%.
The total return is equivalent to a CAGR of 38%. RM100000 invested two years and five months ago has grown to RM220500, while the amount of money invested in the broad market remains unchanged.
Three out of the eleven stocks have triple digits return; Datasonic at 565%, Homeritz at 424%, and Fibon at 117%.
Again it has demonstrated that investing following the core principles and methodologies of the super fundamental investors has yielded superb return, and more importantly, with very low risk as again evidenced from the minimal losses of just a couple of losers.
Is the superb return of this second portfolio using these core principles and methodologies another exception together with the first one?
Stocks selected throughout 2014
I have another portfolio which is not officially published in i3investor but the stock selections were shared in i3investor which you can search from the link below:
http://klse.i3investor.com/blogs/kcchongnz/
The stock selection also come with detail analysis as published in i3investor. I like to share the principles and methodologies in investing, which I think it is a better sharing, rather than telling others what stocks to buy without any thesis. I have compiled them into what I call “My Third Portfolio”.
How has this “My Third Portfolio performed in the short period of less than two years?
Table 3 in the Appendix shows the performance of the stocks and the portfolio for “My Third Portfolio”. Here I have omitted a couple of company warrants which were shared as educational purpose on the usage of financial risk management using options. Nevertheless, the effect on the total return of the portfolio is not that significant.
During this period when the portfolio was formed, the broad market was almost at its peak with KLCI at 1844. Since then, it has dropped by 8.2% due to the various problems at home and abroad. However, the portfolio of stocks has performed very well too.
Eight out of thirteen stocks, or 62% of the stocks in the portfolio have positive total returns which varies from 5.1% for Kuchai to 188% for Latitude Tree. The average return of the portfolio is 46.3%, beating the broad market by another wide margin of 54%.
The three stocks which under-performed the market are Plenitude at -35.4%, Perak Corporation at -28.3% and Tong Herr at -14.2%. This time, the loss is relatively larger than before. However, I believe it is just a temporary setback as I reviewed my investment thesis, there is no serious concern about those companies, in my personal opinion.
RM100000 invested less than two years ago in “My Third Portfolio” has grown to RM146000, while RM100000 invested in the broad market has diminished in value by RM8200 to RM91800.
Again there are three stocks with triple digit return, even in this short-term investment horizon; Latitude at 188%, Prestariang at 146.7% and Magni-Tech at 143.3%.
Again it has demonstrated that investing following the core principles and methodologies of the super fundamental value investors has yielded superb return, but with relatively low risk.
This return on “My Third Portfolio” demonstrated that one of the principle of fundamental value investing of diversification is important for ordinary investors.
Is there other proof that investing basing on the core principles and methodologies of the super investor yield good results and with little risks. Yes, of course.
Stock picks by my online course participants
I have posted an article with the stock picked by my previous course participants here:
http://klse.i3investor.com/blogs/kcchongnz/88314.jsp
Many of my previous course participants have become very good fundamental investors. In fact, I have been relying more of their recommendations and information for my investment.
Here is the summary of the stocks selected within the last one year and the return of the portfolio as on 17th December 2015.
Conclusions
It has shown in the above that, all the four portfolios of stocks in Bursa selected using the core principles and methodologies of the fundamental value super investors, three from me, and one from my course participants, outperformed the broad market by a very wide margin. The consistency in the superb performances implies they are unlikely as a result of luck. This is also in consistent with the good performances and proven records of the fundamental value super investors.
Hence following the core principles and methodologies of sound investment has a higher probability of building long-term wealth in the stock market. Don’t you agree?
So, what are you waiting for? Don’t you also like to learn and acquire these proven core principles and methodologies of investing for your investment to build long-term wealth surely and safely by your own? Please contact me for an online investment course which will start soon for a small fee.
Tis goeth down to a fundamental aspect that “An investment in knowledge pays the best interest” - Benjamin Franklin
This course will start with stock picks for the new year 2016 as a new fundamental value portfolio.
K C Chong
Appendix
Table 1: GE13 Watch Performance
Table 2: “Stock Pick Challenge 2013 2H” Performance
Table 3: My Third Portfolio Performance
Table 4: Stock pick by course participants
Created by kcchongnz | Jan 22, 2024
Which to buy, Insas or Insas WC?
Created by kcchongnz | Jan 15, 2024
Created by kcchongnz | Jan 01, 2024
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An investment in Mr. Chong course provide me the ever best return.
2015-12-21 20:24
Posted by hissyu2 > Dec 21, 2015 07:56 PM | Report Abuse
investors are getting smarter... pretty hard to spot hidden gem... KC's picks are mostly time-proven-strong... anticipated to look for your 2016 picks...am surprised padini wasn't in your previous porfolio.
Padini is in my 2015 stock picks. The stock selection is less than two months ago when it was at RM1.62.
http://klse.i3investor.com/blogs/kcchongnz/85828.jsp
2015-12-21 20:56
sir, that's why trader hates you~ your picks are always gaining after a "long" period... traders can never wait... they want to "invest" to get quick gains(though i thought gambling is faster)...
I remember you have an article talks about the return vs time... I see a few stocks in red for 2014 picks but all green in 2013 picks... It's proven again the theory works:)
Merry Christmas and congrats to your gains... Thanks for continuing sharing your hardwork...
2015-12-21 21:35
Mr Chong
Thank you very much and Merry Christmas
I believe many have benefited from your writing
Of course including me
May I take this opportunity to share my success with all the readers here
Join KCChong online course, learn the true skill of investing in the stocks market
That is the best way to protect your hard earned money
I name Pisang besar ,
so that it is more appropriate to hit back at those who like to bullshit you.
Hahaha....
Talking nonsense again,
Hope have not cause any dislike here
If any, very very sorry loh....
Happy New Year.
2015-12-21 21:52
An investment in knowledge pays the best interest.... I've learned so much from your online course and I made quite some good profit with the knowledge that you taught me, thank you very much and Merry X'mas!
2015-12-21 22:22
Thank You Mr Chong for another year of many great articles and all the hard work and time u put in to share with your followers who seek the truths n did not follow blindly :) Merry Xmas n a happy New Year :)
2015-12-22 05:35
opps solly take your space a bit n wish my good buddy invest88 Merry Xmas n happy new Year n make lots of whiskey bottles in 2016 :)
2015-12-22 05:37
Merry Xmas to my guru Mr KCChong.
I have a 55% overall portfolio gain (36% realized and 19% unrealised gain) for the year of 2015. I must say big thank you to you and you are true guru of all.
I am 99% confident that my portfolio have another 300-350% upside potential for 2016 where i recently has completed my portfolio restructuring. I am still sharpening my investment skill.
Looking forward to meet you in next year June during the KCChong Investor Club 1st Annual Retreat in Johore. Thanks and may you are blessed with all the good health and wealth.
From, YiStock
2015-12-22 08:11
Wakaka. Yistock who predicted frontkn another inari.
Latest flop johotin.
2015-12-22 08:14
hi zbaikitree, good morning. happy to see you still in bursa. Merry christmas. Do grow up to be a mature investor and able to think logically for 2016 ya..Cheers!
2015-12-22 08:17
@YiStock
I believe I am entitled to join also
I am a graduate of KCChong Business School
I attended his online course
But I quiet quiet never tell anybody
2015-12-22 08:18
Yistock. I grew up ady. But i still like to make fun.
Merry christmas to u.
2015-12-22 08:19
Icon8888, i know you are among the mr chong's most outstanding disciple. I seriously want to meet you and learn from you.
2015-12-22 08:20
Icon888, wow you are KC's student ? Come on please share your marvelous stock write ups on the KC Chong facebook page first la... sharing is caring... :)
2015-12-22 08:50
Glad to learn there is so many classmates.....
Merry Xmas to all fellow course mates...
2015-12-22 09:42
yes, Noby, I like to learn from sifus
I also attended Uncle Bee's course. He is a funny guy
2015-12-22 09:59
Yistock are you joking you want to learn from me ? I am the one that should learn from you.
For example : I study RGB after reading your articles
I like to drink Kopi-O : )
2015-12-22 10:02
Merry Christmas and Happy New Year to all my friends here. Many of you I haven't even met before but in my heart, you are my true friends.
This song is dedicated to all of you.
https://www.youtube.com/watch?v=6lbPgfKK7m4
2015-12-22 18:17
Merry Christmas KCChong. Although I am not your online student but I treat your articles as a lesson for refreshing what I have learned in our places.
2015-12-22 18:57
Merry Christmas to kcchongnz & MG9231,
Yes, MG9231 first told me that the only one true sifu in i3 forum who can analyse stocks property is kcchongnz.
MG9231,
You better come out and contribute your gifts.
2015-12-22 19:04
Icon8888 can u write more review on comitel corp. Donu know whether this stockgot to do with hsbb contract?
2015-12-22 19:05
Posted by MG9231 > Dec 22, 2015 06:57 PM | Report Abuse
Merry Christmas KCChong. Although I am not your online student but I treat your articles as a lesson for refreshing what I have learned in our places.
Hi MG9231,
Glad to see you here. I remember we first "met" in Pintaras, then in icap.biz.
I know you are a great investor yourself. Appreciate if you could give critical comments in my posts in the future.
2015-12-22 19:41
Icon8888, actually i win by learning. 活到老学到老。投资最忌不学无术。学人之长,补己之短。有心学, 永远学不完。
2015-12-22 20:24
Frank - thanks for the greetings. You too together with your loved ones have a blessed and merry Christmas and a great year ahead. Cheers !
2015-12-22 20:27
Merry Christmas to all...
I think we can setup a forum for kcchong students and followers....
2015-12-23 11:10
Mr. Chong and my beloved course mate...
I take the initiative to create a forum
Come and say hi here - http://klse.i3investor.com/servlets/forum/902389132.jsp
2015-12-23 11:13
Posted by muzes23 > Dec 23, 2015 02:49 PM | Report Abuse
Hi KC.May I know how do you get the adjusted price of kfima? thanks.
It is from the daily prices available from Yahoo Finance, adjusted for dividends.
2015-12-23 15:28
hissyu2
investors are getting smarter... pretty hard to spot hidden gem... KC's picks are mostly time-proven-strong... anticipated to look for your 2016 picks...am surprised padini wasn't in your previous porfolio.
2015-12-21 19:56