kcchongnz blog
In Search of excellence in Bursa kcchongnz
Buy companies with good products, services, and good management and the investment returns will come. This is a story that you have heard over and over from the most impeccable sources. As with other investment stories, this one resonates because it is both intuitive and reasonable.
What is a good company?
It is difficult to get consensus on what makes for a good company since there are so many dimensions on which you can measure excellence. There are some who believe that good companies have managers who can fry (manipulate) the share price of the company for the shareholders to make money numerous times in a year. They think the CEO must be a high profile and a talking head in the press.
Many people think that good companies must often carry out corporate exercises such as bonus issues, share split and free warrant to “reward” their shareholders like those companies mentioned here:
http://klse.i3investor.com/blogs/kcchongnz/106438.jsp
Why not? This is what your shareholders want; if the management “fries” the share and always give freebies like those in the link above, the share price will always go up, and they as shareholders will make tons of money, so it seems. Really? From where?
Of course, you can’t forget that there are many investors who think that a good company must have higher profit this quarter than the next, and the next better than the next, etc. One quarter of reduced profit will be disqualified as a good company and the share must be sold.
If one reads i3investor, we can’t ignore that there are also many who think that a good company must be owned by fund managers, EPF, analyzed and written by investment bankers and professional analysts, owned and constantly promoted by big and high profile super investors etc.
Uh, there are also some who believe that a good company must have huge amount of debts as cost of borrowings is cheap. They think that the management is doing a horrible job if there is huge amount of cash in its balance sheet.
There are also investors, me included, who think that a company which gives good and rising dividends are good companies.
http://klse.i3investor.com/blogs/kcchongnz/103906.jsp
Generally, many believe the management of a good company frequently listen and respond to their shareholders’ best interests. Finally, there are still others who believe that good companies respond not just to shareholders but also to other stakeholders including their customers, employees and society. For those who are trained as accountants, remember the “Balance Scorecard”?
What are my criteria of a good company? Has investing in good companies in Bursa provided exceptional return? what are the evidence if it has?
In Search of Excellence
My criteria of a good company are a well-run company with credible management and good corporate governance; no unfair related party transactions, independent board of directors. A more measurable metric for good company is its financial performance; a durable business, better if it is a business with wide moat, quality growth in its business in the long term, a return on invested capital (>10%) higher than the cost of capital, good cash flows which on average, close to net profit, and positive free cash flow, and a healthy balance sheet. Good and increasing dividend of course is also one of my criteria.
However, research has shown that investing in good companies is not necessary a winning strategy. This is because the market has built into it these expectations. The biggest danger is that the firm will lose its lustre over time and that the premium paid will dissipate. It is only when markets underestimate the value of firm quality that this strategy stands a chance of making excess returns. There is a strong tendency on the part of companies to move toward the average over time, or mean reversion. So even though a company may be a good company, we try not be pay lofty prices with PE ratio not more than 25, and Price-to-book less than 2.5.
I wrote an article in i3investors on 25th May 2013, before I started my blog within i3investor, giving my thoughts on searching good companies to invest in with reasonable prices.
http://klse.i3investor.com/servlets/forum/900255072.jsp
Many forumers posted me questions on their stocks in the above link whether they are good companies to invest in. Here is one of those questions.
[Posted by joe2703 > May 27, 2013 06:11 PM | Report Abuse 
@kcchong, I'm your fan and I learn a lot of things from you, you have given a lot of useful information and advice. Thanks.
What do you think about TA Global ? Need your advice.]
Another regular contributor, Tan Kian Wei, summarized what my thoughts were and tabulated those stocks which I had expressed my opinions answering questions about if they were good companies selling at good prices.
http://klse.i3investor.com/servlets/pfs/19821.jsp
A total of 16 stocks were commented by me as good companies selling at reasonable prices and hence were considered as good investments as shown in Table 1 summarized by Tan KW in the Appendix.
How has the performance of those stocks been?
Return of investing in good companies
Three and a half years has passed since then. Table 1 in the appendix shows the up to date total return as on 28th October 2016 of the 16 stocks chosen from 25th May 2013. The portfolio comprises of companies from various industries, but unfortunately a little concentrated in plantation. The prices were adjusted for all corporate exercises and dividend distributions and as provided by Bloomberg.
Almost 90%, or 12 out of 16 stocks outperformed the broad KLCI index. The average total return of the 16 stocks was a whopping 225%, with a median return of 72.2% in the three and a half years’ period, compared to the negative return of -1.5% of KLCI. The excess return, alpha, is a whopping 226.5%. RM100000 invested in May 2013 becomes RM325000 three and a half years later, compared to a small loss if invested in the broad market index.
Ignoring the extremely return of the outlier of Technic which returned 1900% after its corporate exercise, the average return of the remaining 15 stocks is still way above 100%.
There were only two losers in SOP (-32.2%) and TDM (-10.5%) with relatively small loss. This was unfortunately due to the low palm oil prices for the last 3 years as almost all palm oil stocks have suffered losses during this period. Surprisingly, there are two other palm oil related counters in the list of stocks; Kim Loong, still with high gain of 81%, and MBL at a small gain of 9.2%. That is the power of choosing good companies even during the down cycle of the industry.
There were only two other stocks with single digit return; P&O at 9.2%, and Perak Corp at 8.6%. But they are still producing relatively good results compared to the drop of the market during the same period.
The rest of eleven winners are all double-digit and triple-digit winners, with six of them in the triple digits; Technic (+1900%), Eforce (+470%), Gadang (+301%), Magni (+278%), and Thong Guan (+185%).
Conclusions
The above value investing strategy of investing in good companies at reasonable prices worked well for the mid and long term in the past in Bursa Malaysia by providing extra-ordinary returns for investors. Just like other fundamental value investing I have been discussing, this strategy also produces high extra-ordinary return for a substantial number of stocks, but minimal number of underperformer and negative return, and when negative return, the quantum is small.
The interesting phenomenon of this value investing is the repetition of the Dhandho Investor;
"Heads, I win (big)! Tails, I don't lose that much!"
The beauty is, this value investing strategy is not difficult. One just needs to spend a little time to learn, and check qualitatively and quantitatively if those companies are indeed good companies, and that they are selling at reasonable prices. The metrics can be easily extracted and computed from the three important financial statements; income statement, balance sheet and the cash flow statement. It is just a matter of whether you are willing to spend some time and effort to learn and do some homework before investing?
In your quest of building long term wealth, haven’t you got tired of losing money all this while listening to rumours and hot tips in the stock market? Or you still believe there is tooth fairy in the stock market?
If you think you have been in the “wrong path” in your investing journey, and wish to do something positive about the future of your financial wellbeing, you may contact me at
ckc14training@gmail.com
K C Chong (28th October 2016)
Appendix
Table 1: Return of investing in good companies from May 2013 to end of October 2016
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Discussions
3 people like this. Showing 50 of 69 comments
BLee
Uncle Calvin, noted on your good intention. Maybe you can give some advise on Pmetal. I have being in and out Pmetal few times and made good profit. Out now totally and intention to be in again after bonus and split. I am also doing a study of all 3 call warrants, only warrant issued by Pmetal compensated with extra warrant, so a bit scary to buy the wrong warrant. Thanks kcchongnz for so informative article. Tq Calvin.
30/10/2016 02:11
BLee,
I didn't follow up on Pmetal. Sorry, since I didn't study it I can't comment yet.
Best person to answer would be KcChongNz
2016-10-30 13:33
Posted by king36 > Oct 29, 2016 09:11 PM | Report Abuse
cheated All stocks are bought in 2013 meaning no stocks bought past 3 years in 2014, 2015 & 2016. Can trust?
You got a point.
I would wish KC could provide a recent list as this would brighten our current depressed atmosphere.
I have shown you numerous times that value investing works very well in Bursa in my experience. I have provided you with the portfolio stocks many times published years ago and their excellent returns so far, to prove that in my very own experience it works.
Yet you still say "Can trust" ah?
When you do not trust value investing, what good is it to give you a list of potential stocks based on value investing?
My advice is forget about believing there is tooth fairy in the stock market. There ain't no free lunch in investing, in fact, for almost everything. Arm yourself and you, and only you, is the one who is dependable for your investing success.
Good luck.
2016-10-30 13:33
Kcchongz, dont keep rechurning your recommendation track record over and over again lah. Havent you heard of the saying "you are as good as your last trade"?
2016-10-30 13:51
Thks Calvin. Different between Uncle Calvin and Uncle Kyy is at least uncle Calvin will give an honest reply despite some constructive criticism.
2016-10-30 14:49
FA and TA are all historic analysis. I think we need 'CA' Current/Constructive Analysis. I am doing that for Pmetal. I think I can get a good price after 'ex' price as it will be more share floating around, especially warrant c as too many given 'free'. My 2 cents. A good company is like running a Marathon, we need to look at long term and sustainability. At present, Pmetal is such a company unless some good competitor come along.
2016-10-30 15:07
We have to understand that this is only an advertising article. So, it has to repeat again and again the same old story!
By the way, we all know that up-to-date company information is vital in a decision as to whether to buy or sell a share. Share price reacts to constant changes to this information and not some historical financial data.
2016-10-30 17:30
Not all companies can maintained its credible performance throughout the years . It may still have to subjected to world markets stability to realise its performance where no one can actually foresee
2016-10-30 19:37
NOW THE PICKS SHOULD BE FROM IOT SECTOR, INTERNET OF THINGS, PAY MORE ATTENTION ON THIS SECTOR,,SEARCH FOR HIDDEN GEMS IN THIS SECTOR, THANKS
2016-10-30 21:31
Yes, got 'loT' of friends in 'IoT' telling me got 'loT' of jobs and pay wells. Second 'IoT' bubble building up... Please share and be part of CA, Current Analysis. Note: iot and Lot interchanged, not typo error.
2016-10-30 22:37
Wing50 & Michaelwong. Agree with u.
feimah - u r Kay-poh.
I still thank KC for the 200+ articles he has contributed to i3.
2016-10-30 22:55
Posted by wkitwing > Oct 30, 2016 01:15 AM | Report Abuse
hello kc,how do you view about apm automotive?once a excellent company but now its a beaten down fallen angel i would say due to automobile downturns now.however it make me doubt ever since the company raise abt rm1.5billion sukuk.it makes me wonder whether the company will be able to utilize this 1.5billion properly for good because this amount is not small.
Market goes in cycle. An established and well run company will survive and prosper. A good company with little debt undergoing recapitalization by using a little more debts, is often a good management decision.
2016-10-31 03:46
Posted by Wing50 > Oct 30, 2016 05:30 PM | Report Abuse
We have to understand that this is only an advertising article. So, it has to repeat again and again the same old story!
By the way, we all know that up-to-date company information is vital in a decision as to whether to buy or sell a share. Share price reacts to constant changes to this information and not some historical financial data.
Thanks for your statement which is true to a certain extent.
You see how difficult is it for people to get it, even I repeat and repeat again about the proven success in fundamental investing, with facts, figures and all the evidence, from my very own experience, yet they still can't see, nor understand, or refuse to understand, that FVI works, and it works very well.
All my experience in success in FVI, yes, all of them as published, one strategy after another of FVI, provided out-performed hugely. They are all mostly based on what have been conveyed in annual reports, financial statements, historical you may say, but they worked very well.
Do I have to be a snake-oil salesman to give you prediction of the future to be successful in investing?
2016-10-31 11:41
" Generally, many believe the management of a good company frequently listen and respond to their shareholders’ best interests. "
I 100% agree with the above statement.
2016-10-31 13:20
Calvintaneng, your comments in my threads are always most welcomed because you may be over-zealous sometimes about your stocks, in my opinion, your comments are generally fill with facts and very relevant specially when you warn against some overplayed stocks.
Owners of those stocks should, instead of calling Calvin names, take a deeper look at what he says, find out more, and may be it is beneficial for you eventually. That is the kind of attitude we as small retail investors should possess, take notice of opposite views, rather than having the cognitive bias of confirmation bias.
I really don't know why your comments here should be flagged.
2016-10-31 13:33
KC , your target of talk is wrong this time
it is Calvin who is having the "cognitive confirmation bias" you said.
look at the way he commented about Gadang,
other than Capital city that he called a white elephant, what other fact and data that he had provided.
did he read the agreement of the JV?
did he evaluate the financial status of Hatten int ptv ltd ?
did he knows how JV work?
did he knows how Gadang unlocking the value of the land that was bought and now fully paid , at a price of 35M in return of a profit sharing of 334M for a period 5 and a half years starting from 2015.
why going round bull-shitting creating fear at all corners of i3
he should stick to his bina puri where know more than talking rubbish about thing that he doesn't know much
2016-10-31 14:11
Posted by kcchongnz > Oct 31, 2016 01:33 PM | Report Abuse
Calvintaneng, your comments in my threads are always most welcomed because you may be over-zealous sometimes about your stocks, in my opinion, your comments are generally fill with facts and very relevant specially when you warn against some overplayed stocks.
Owners of those stocks should, instead of calling Calvin names, take a deeper look at what he says, find out more, and may be it is beneficial for you eventually. That is the kind of attitude we as small retail investors should possess, take notice of opposite views, rather than having the cognitive bias of confirmation bias.
I really don't know why your comments here should be flagged.
Yes, Sifu KcChongNz,
A Big Thank You.
Syndicates flag me as I am exposing them and their ploys.
Btw,
When I first joined i3 Forum I knew nobody here. Only My Johor Sifu MG9231 told me KcChongNz's writing got value. And he said OTB must go and learn from you.
Anyway, all who contacted me through Whatsapp & email in Spore all these days for teaching I directed them to contact. I don't have the time nor the nitty gritty detail.
I really hope i3 people are not conned by syndicates
2016-10-31 14:25
if this shameless personality is not given a big slap on the face
I am not surprise , one day he will tell you that you value investing strategy is outdated, his wild guessing is more truthful
2016-10-31 14:26
Correction,
All who conteacted me all these years in Spore through EMail or Whataspp I told them to sign up with Sifu KcChongNz
2016-10-31 14:27
Raider also think should becareful Gadang....bcos it is overplayed with latest below expectation stock price under expectation result loh....!!
Going fwd more and more selling pressure mah.....!!
Raider notice when KYY....start selldown on Focus Lumber....it fall all the way from rm 3.00 to rm 1.45 within a period of less than 3 mths loh....!!
Therefore it is ok to take profit or cut loss b4 too late mah...!!
2016-10-31 14:31
Posted by calvintaneng > Oct 31, 2016 02:25 PM | Report Abuse
I really hope i3 people are not conned by syndicates
they con us , you mislead us
the damage is doubled.
2016-10-31 14:32
Posted by Wing50 > Oct 30, 2016 05:30 PM | Report Abuse
We have to understand that this is only an advertising article. So, it has to repeat again and again the same old story!
By the way, we all know that up-to-date company information is vital in a decision as to whether to buy or sell a share. Share price reacts to constant changes to this information and not some historical financial data.
=========================================
If you read a lot of financial books, you will discover that people actually have very short term memory especially when it comes to financial memory.
Imagine if one day KC stopped writing completely, within 1-2 years, nobody would have remembered him, not to mention value investing.
Do you know value investor is actually only a minority group in the market?
As much as KC keeps repeating like a broken record, I think it is a necessity to do so.
Maybe KC you could add some spice into it, by add some new fresh element? or maybe talk some up to date topics like how felicity commented on Gadang?
Anyway, do keep up with the good work KC.
2016-10-31 14:37
I am a fans of KC and cold-eye,
I do not know how to be careful in my investment
I only know I must invest in a company that I can sleep well
2016-10-31 14:51
If u have the share and not interested in cut loss or take profit...it is your perogrative mah.....!!
For new investors just beware loh....bcos selling pressure is building up....do not jump in....unless and until things settle loh...!!
Just look icon...a smart player...he already cut and run mah...!!
That should be the strategy b4 too late...!1
2016-10-31 14:59
Posted by GG3261 > Oct 31, 2016 02:51 PM | Report Abuse
I am a fans of KC and cold-eye,
I do not know how to be careful in my investment
I only know I must invest in a company that I can sleep well
In my opinion, Gadang is ok company. It is nothing great, and the management, ok lah, but again is nothing that great.
If you invest in Gadang just a year ago when it was selling at RM1.50, yes, I agree with you, you should be able to sleep well. I did invest in it too, and I also invest for some of my friends too.
But with the private placement, the bonus issues, the share split, the misinformation about the Kwasa Land development, and the heavy promotion, share price shot up to RM3.30, in a short time.
Furthermore, someone also told you to buy more, because he has bought hundreds of millions, because the value of your share has increased and you can use more borrowed money to buy more, etc.
Don't you feel something is not that right?
I may be wrong, as I sometimes do, or rather often do. But in my school of thoughts, we care more of downside than trying to win big, which in my opinion, seldom materialized.
2016-10-31 15:09
talk is cheap,
icon can sold house , sold car to buy camcorp, airasia....
do you believe he will keep gadang and sold his house and car
icon had sold his gadang long long ago......
2016-10-31 15:09
Sep 6, 2016 11:57 AM | Report Abuse
How high can go have to base on your own study especially the momentum of the company, shares split and bonus give. If the price over the value of the company then later kena trap gao gao.. kikikiki
Stock: [GADANG]: GADANG HOLDINGS BHD
Oct 21, 2016 01:04 PM | Report Abuse
Sell Before split.
2016-10-31 15:17
KC,
thanks for you advise,
I am safe with the downside of gadang, don't worry
i just can not tolerate some people talking rubbish here
2016-10-31 15:17
GG3261: what price of Gadang in ur bottom heart? If not mistaken Tan Sri hv gv the ans.
2016-10-31 15:19
Posted by GG3261 > Oct 31, 2016 03:17 PM | Report Abuse
KC,
thanks for you advise,
I am safe with the downside of gadang, don't worry
i just can not tolerate some people talking rubbish here
In life, take from others what is good and ignore what you think is not good.
For Gadang, whether Calvin is right or not, we will wait and see. But I don't think he talks rubbish about it.
In investing, invert, always invert.
2016-10-31 15:32
KC,
Calvin doesn't like Gadang because of capital city, he called this project white elephant. do you mean , in your eye, capital city indeed an white elephant ?
2016-10-31 15:41
Sell car sell house, sailang, all these words are a way to say go big into it. It doesn't mean I buy only airasia and nothing else
I only invested about 20% of my money in airasia and it subsequently ballooned into 40%. I mentioned this before in the forum. Check out Hippo Buy Signal blog article for details
I held Gadang from 1.20 and sold all the way up. sold last batch at 2.90 on last Friday
I dont lie. I am not Calvin
Posted by GG3261 > Oct 31, 2016 03:09 PM | Report Abuse
talk is cheap,
icon can sold house , sold car to buy camcorp, airasia....
do you believe he will keep gadang and sold his house and car
icon had sold his gadang long long ago......
2016-10-31 15:51
Posted by GG3261 > Oct 31, 2016 03:41 PM | Report Abuse
KC,
Calvin doesn't like Gadang because of capital city, he called this project white elephant. do you mean , in your eye, capital city indeed an white elephant ?
I don't know much about Capital City. I believe many who have bought Gadang also don't know much about it too. We as retail investors have limitations of what we know.
But with what Calvin said, whether he lied or not, but if i were you who is so committed to Gadang, I will seriously take a good deep look at it.
2016-10-31 15:56
if he is focusing on the corporate exercise , somebody's buy call and heavy promotion.....
that is ok and I will consider it as a good piece of advise
nothing to feel bad about and won't see my name appear here
but he is showing some funny pictures this morning that i consider a nuisance without proper investigation
2016-10-31 15:57
even tho i am considered a typical newbie, i noticed that the amount of opposition on calvin is actually quite astounding.
plus i am really uncomfortable with the way he bashed AAX without any basis being given and the recent gadang stories on bad luck names n all. some stories may be right..but what on earth does bad luck names have in our analysis of stocks n companies to buy? my god....i also noticed he just luvs to spin stories n stories upon stories. its quite entertaining ....lol
if you have a lot of ppl saying u have done a lot of wrongs...it will probably mean that it is.
i totally agree with icon on this calvin story teller...
amen
2016-10-31 15:58
plus i really find it ludicrous n downright funny to boldly state that bjcorp is the berkshire of asia and palm oil to go up to rm6k with out any proper due diligence...excellent story teller
2016-10-31 16:01
here you read the agreement of the JV
Posted by calvintaneng > Oct 29, 2016 11:25 PM | Report Abuse
Posted by pisanggoreng > Oct 29, 2016 11:09 PM | Report Abuse
a chinese saying,
one type of rice , all sort of people
ah boon not interested in gadang because it is a share promoted by his enemy KYY and he is jealous of OTB . so do not hope to hear anything fair and unbiased from him regarding all the stocks recommended by KYY or OTB
Calvin refuses to believe Gadang can perform well because of capital city .
he is convinced that houses are difficult to sell now a days , not only capital city but the whole property market in Malaysia and Singapore. He had seen this with his own eyes.
But he is a good christian with a careless heart.because he did not do his homework well before providing his golden advises not to invest in Gadang .
why i said he is careless?
1. He did not read the agreement of the JV of Gadang and Hatten for the development of Capital city.
you may view the agreement through the following link:
http://www.bursamalaysia.com/market/listed-companies/company-announcements/4381697
if he had read the agreement carefully with an unbiased heart (hati terbuka), then he would have convinced that whether capital city a "white elephant" or "not a white elephant" , Gadang is guaranteed of the profit sharing of some RM334,000,000.00 or a steady income of about RM55M - 60M per year, every year for a period of 5 five and half year starting from 2015 untill 2021
Gadang did not have to pay a single sen for the development , just a piece of land bought a price of RM 30,500,000.00. all the development cost is borne by Hatten
2. Calvin did not check the financial status of Hatten international pte limited company. if he had done that,then he would have convinced this capital city project for Hatten is just a "sap-sap-sui" case.
Conclusion :
Capital city is a Goose that lay the Golden eggs for Gadang ,
how can you let go easily a Golden Goose with a small gain.
God will never give you a second chance if you do not treasure the first one.
Calvin replies:
Pissanggoreng or pissang sudah kena goreng?
Calvin good Christian with careless heart?
Calvin has studied both Hatten from Singapore & Gadang's position.
I think Hatten has tried to wear a Hat Too Big For Its Own Good.
Now of course Gadang is providing the 16.2 acres land worth Rm21 millions for the Capital City JV project.
Share of Rm334 millions windfall of JV with Hatten? I think you prepare to forget it. There is a blindness of colossal proportion if people are buying into the Capital City story.
Mow that Capital City is being built in stages Gadang's own 16.2 acres land are liable for quit rent & assessment. It will be more and more from MPJB later. Just like they slapped a Huge Tax on UEMS!
So in stead of a profit from Capital City Gadang better be prepared to pay more land taxes. That will be a wake up call later.
31/10/2016 10:17
2016-10-31 16:01
May i know which are the value investment company to put in portfolio 2017? Let it go for the past ,look forward the furture growth of investment to accumulate for the compounding return..
2016-11-01 00:21
It is entirely your prerogative to agree or disagree with my statement that up-to-date information is vital to decision making in selection of shares, as historical financial data are all factored in the share price.
Prediction of the future and success in investing are two entirely different matters.
You don't need a snake-oil salesman to give prediction of the future. You would be better off to consult a clairvoyant, so long you are happy and believe in it.
Even if you correctly predicted the future that doesn't mean you are a successful investor.
We are well aware that even the most successful investors in the world will time and again get it wrong. However, that doesn't mean that he/she is not a successful investor.
So, why would I expect you to become a snake-oil salesman to give me prediction of the future?
2016-11-01 02:05
Posted by Wing50 > Nov 1, 2016 02:05 AM | Report Abuse
It is entirely your prerogative to agree or disagree with my statement that up-to-date information is vital to decision making in selection of shares, as historical financial data are all factored in the share price.
Prediction of the future and success in investing are two entirely different matters.
You don't need a snake-oil salesman to give prediction of the future. You would be better off to consult a clairvoyant, so long you are happy and believe in it.
Even if you correctly predicted the future that doesn't mean you are a successful investor.
We are well aware that even the most successful investors in the world will time and again get it wrong. However, that doesn't mean that he/she is not a successful investor.
So, why would I expect you to become a snake-oil salesman to give me prediction of the future?
As a retail investor, there is limitation of what he can do, the most is to base on annual report and published financial statements, and/or industrial report, other analysts reports etc. To get other information like management plans, future contracts, prospect of the industry etc, those are the job of a professional analyst. This information is important, but is it really so "vital", a must have in order to be successful in investing?
And tell me, how many of those professional analysts, in percentage wise, with so much "vital" information at their disposal, have done very well?
I have shown many times in i3investor, really successful super investor such as Walter Schloss of deep value investing, Joel Greenblatt of Magic Formula, Coldeye based on his 5 yardsticks extracted from annual report, or ven Buffett of his famous metric of return on capital, etc. Does anyone of these tell you that predicting the future is very important for your investing success?
"historical financial data are all factored in the share price."?
I used to use to argue with others that the above of market efficiency is always true when I was studying a master degree in finance, because I was brain-washed. After reading many books and writings of those super investors, and from my own investing experience in the last 10years, some of which I have shared all over i3investor in the last 4 years, I have completely changed my view.
Buffett used to say, "If the market is efficient, I would be holding a tin can in my hand now."
"Even if you correctly predicted the future that doesn't mean you are a successful investor."
Why not? The question is how many people can do that?
"We are well aware that even the most successful investors in the world will time and again get it wrong. However, that doesn't mean that he/she is not a successful investor."
Who are those very successful super investor who time the market, get them wrong, and be very successful? What is the percentage of them?
2016-11-01 04:34
Thank you for your statements.
That was a really good and rewarding discussion with you KC. May I add that you are without doubt a very knowledgeable and experienced person.
I can see that people who follow your course will open their eyes to see a whole new dimension of investing and benefit from it.
I also understand now why you need to keep asking people to read and read again what you write.
2016-11-01 05:31
A good discussion.
KC still the MAN.
Nobody could be 100% right but KC still gives good consistent advice. Thanks.
2016-11-01 05:58
Anyone do have analysis for coming year 2017 which company have good growth perfomance in fundamental of real market?ur Sharing will be appreaciated...
2016-11-01 08:46
With or without Capital City, the so-called golden goose, Gadang still a viable and reliable contractors in the good books of MRT and LRT besides other government building contracts..Capital City is a bonus..
2016-11-01 16:09
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Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
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....
sostupid
your son=the stock you intend to buy. I don't think the stock understands any mathematics at all.
2016-10-30 12:07