kcchongnz blog
Dear Mr. Koon from kcchongnz
Mr. Koon,
Wish you well.
I saw the top article in i3investor today after my golf game this morning. Wow, what an article, with my name KC Chong stated in the article and top of the list again! I am going to be famous!
We all grow old, it is inevitable. When we get old, our parts get worn out. We lose our hair, our stamina, our parts get loosen and we have to go to toilet very often etc. And most of all, our memory getting bad, very bad sometimes. I am also getting very forgetful; for example, I can’t remember my favourite singer who sang my favourite songs etc. Someone on the street say “Hi, how are you KC?” I feel embarrassed because I just could not place him anywhere.
But one thing, if we keep everything we do, we can refer to our records what are those things? What have we done? What shares we had 5 years ago, the price we paid for them, and the selling price etc. Keeping record is so easy nowadays with the computer. Do refer to your own record, emails etc.
But before I show you my record of what I have done for you, let me correct one misconception you have had about me about breaking my rice bowl, I presume with your posting, is about my FA course I have been touting in i3investor. No, it is not my rice bowl. I retired from Engineering 15 years ago when I sort of achieving my financial freedom, from working and saving, and not by investing then. I don’t have so much money as you do, not even a fraction of it, but I do not need the subscription from students learning from my course as I live on a simple life overseas. Thank God I bought a house then which is a small fraction of its price now. I worked for a while and my wife was the bread winner then.
The course fee gives me some extra indulgence though. I guess no one should criticise someone for doing some hard work and earn some extra indulgence, do you? I look at this way. People who invest a lot of money in the stock market will definitely benefit from my comprehensive FA course. If they choose not to learn, it is not my loss, it is theirs, following other touting stocks and buy and as a result lose their hard-earning money. Having just the vague “business sense” won’t make them money. One must first have the FA knowledge, then only he can utilize all the business sense he has and combine with FA. Then only there is a higher probability of earning some extra-ordinary return over a long-term investing in the stock market.
Secondly, no, I didn’t say bad things about you in person in the article below.
http://klse.i3investor.com/blogs/kcchongnz/110072.jsp
We are matured, intelligent people. We talk about investing, not about attacking individuals. Some of my articles did contradict what you preach, but they were written to give investors an alternative view. Just like every article you said, all accountants cannot make money because of this and that, I also responded that your golden rule doesn’t work, and that FA may be able to give a good judgment whether to invest in Gadang when it is heavily touted when it was RM3.30. In this case, I talk about cash flows. I may be wrong, but as I said, this is a reservation for myself, not anyone else, whether I should sell or hold Gadang at RM3.30 or not. I may be wrong in my assessment, but who never got wrong in an assessment?
Let me refresh your memory because I do not know why, almost everything you wrote in your recent article was wrong. Your memory is getting very bad now.
At the end of June 2014, you requested to see me. I was on my way to Penang and I dropped by your house in Meru golf Course to pay you a visit. That was because I had huge respect of you as a philanthropist, and you have written many good social and political articles which I was quite intrigued about. Your wife made a nice coffee and some curry puff. They were good, thanks Mrs. Koon. I took a picture with you after which I came back and proudly showed my relatives and friends of my picture with a great philanthropist. That much respect I had had for you then.
I had no interest to manage your money but out of respect, agreed to do so with one of your accounts in CIMB. Yes, two CIMB investment bankers know this very well, because I was trying hard to reduce your brokerage fee, which was about 0.5%, and there were a few meetings with them. I managed to reduce a bit, but because it was a margin account, the investment banks had to charge a higher rate.
The portfolio of stocks you left to me had a market value of RM18.4m, not RM10m as stated by you. The other thing is it was less than 2 and a half years ago at the end of June 2014 you requested me to manage the fund for you, not 4 years as stated by you. In case you forget, Table 1 in the Appendix shows the stocks you had in your portfolio.
You had a huge concentration in Mudajaya (49.2%) and Jayatiasa (27.5%), and many other plantation stocks in Kulim, Sarawak Plantation and THPlant. My first FA instinct was the portfolio is not diversified, something I preach in FA. I practically sold off all your stocks, except for MFCB. If not for your intermittent intervention on my selling, I would have saved closed to RM10m for you as shown in today’s prices on all the stocks in Table 1 in the Appendix. First up on my FA, diversification avoid adversity.
I told you I did not like Mudajaya at that price of RM2.51. I told you the American Company Enron lost their pants in India trying to build power plant in 1990s because India is filled with social and political problems. And don’t forget about the accusation of them cooking their book not long ago. I read a lot of books you know. I was impressed by you then when you could just pick up the phone and called Antos then and asked him about the power plants in India.
You showed me the pictures of Jayatiasa boss taking you on helicopter to see their plantations in Sarawak. That was impressive too. But I told you commodity price such as palm oil is hard to predict, that Jayatiasa has a lot of debts holders who had a claim on its earnings too, and after taking that into consideration, it does not worth that much at RM2.64. You were putting too much expectations on its future earnings, which is always hard to predict. I told you just can’t value Jayatiasa using market cap based on the acreage it has, because as there are huge debt holders. The right valuation is enterprise value. You just can’t value the same price as other plantation company with different soil and land condition, and the way they plant the palm oil and the type of palm oil etc.
I told you can’t trust those financial reports of Chinese companies such as XingQuan and hence I sold them all, everyone, mother shares plus warrants at more than 60 sen and 13 sen respectively.
See what are their share prices now, 10 sen and half a sen? So FA no use? I use FA and could have saved you RM10m.
Did you thank me for selling off all those stocks such as Mudajaya, Jayatiasa and XingQuan and saved you millions, instead what are you doing now? did you ever pay me a sen?
I sold your Latitude Tree and Lii Hen? When were your latitude Tree and Lii Hen in your existing portfolio?
Instead I bought Latitude Tree for you at RM3.69, Homeritz at 88 sen and Scientex RM7.15, both pre-bonus issues and free warrants, Padini at RM1.83 etc. Of course, I also bought some shares which were not doing that great such as Pintaras, Plenitude and Kumpulan Fima.
But if you asked me to manage your account, shouldn’t you give me a free hand of what to do, or I must listen to you? What if I followed your will to buy more Mudajaya, Jayatiasa and XingQuan which you were keeping on promoting then? Then you would be happy?
Yes, you dismissed me. You used the word “sacked”, it is okay with me. This was why you “sacked” me if you forgot, and this was part of the email you sent to me.
“After I read your article on Uchitech carefully and your confirmation that you would not use margin to invest, I have decided to terminate your service because your aim is not high enough for us.
I can assure you that I will keep this confidential so that it will not affect your service to your other clients.
Koon Yew Yin”
Uchitech’s adjusted share price has gone up by more than 50% since I wrote it here two years ago, while the market has gone down a lot during the same period. What is wrong with my FA on uchitech?
http://klse.i3investor.com/blogs/kcchongnz/62058.jsp
After a while managing your portfolio, your wife requested me to manage her portfolio too. Here is your email,
|
9/30/14 |
|||
Dear KC My wife who has a Maybank margin account with to a total value of about Rm 7.80 million and about Rm 3.9 million loan, would like you to manage it for her. The interest rate is base lending rate minus 2% without roll over fee. She will be very happy to give you 10% of the profit you make for her. As soon as you accept her offer, she will get the pass word to enable you to operate the account independently. Koon Yew Yin |
Mrs Koon’s portfolio, on 3rd October 2014 when it was trying to hand over to me, consists basically the same stocks as that of Mr Koon in Table 1 in the Appendix, i.e. heavily on Jayatiasa (41%), and Mudajaya (19%), plus 8 more stocks. At that time, it was a margin account with 70% belonging to the banks. What it means is anytime margin call would be affected.
I, trying to be professional, gave her a list of questionnaires to answer. My assessment on her personal risk profile is risk averse, meaning she is a low risk kind of person. My advice to her, before handling her shares to me, was to sell down her shares as much as possible to get rid of all the margin finance, before we talk about reshuffling the stocks.
That was how I used FA in investing; take care of the downside first, and the upside will take care of itself. If I were to handle her account then, let’s forget about making money first, I would have saved her millions. Notice how the stock market tanked at the end of year 2014, and how much the share prices of Mudajaya and Jayatiasa and XingQuan have dropped then?
That was why he dismissed me as shown in his email. I have actually written an article in i3investor to share about the peril of margin finance here.
http://klse.i3investor.com/blogs/kcchongnz/61822.jsp
Yes, Mr. Koon dismissed me handling his account. Was I sad? First of all, at that time, I had never handled any account of others before except for my relatives, with no rewards at all. I was greatly relieved when he sacked me, rather than telling him I didn’t want to do it anymore, because I could do my stress-free investing then, instead of receiving margin calls notice from CIMB because Mudajaya, Jayatiasa and XingQuan continued to tank after that, and it affected my birdie putt in the golf course.
Yes, two CIMB investment bankers know about this very well, not many, just two.
Thank God for that. Merdeka again!
Mr Koon, please go back to check all the records, reports, and emails I had sent to you to refresh your memory, and see what I have done for you.
Best regards and good health. I still respect your philanthropy and social activities.
Yes, I am still passionate about teaching FA. But this is not my rice bowl. I look at it as a social contribution, although I do charge a small fee for all the hard work I put in. Without FA, I doubt you can make money in the stock market, seriously. Instead, you could lose all your hard-earned money. The stock market is filled with sharks. You have no chance. Anyone interested may contact me at
ckc13invest@gmail.com
KC Chong
Appendix
More articles on kcchongnz blog
Insas Warrants WC and Its Valuation kcchongnz
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Which to buy, Insas or Insas WC?
Isn’t this the most undervalued stock in Bursa?: Insas Berhad by Kcchongnz
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2024 New Year Reflection Investing in the Stock Market: Timing the Market
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2023 Christmas reflection on pitfalls of investing in the Malaysian stock market kcchongnz
Created by kcchongnz | Dec 25, 2023
Introduction: The Complete Dividend Investing Guide That Works by K C Chong
Created by kcchongnz | Oct 02, 2022
Discussions
67 people like this. Showing 50 of 286 comments
If you are really very good in your investing, you will soon be rich without having to leverage (use margins). On the other hand, if you are not good in your investing, there are many reasons why you should not use leverage (margins).
2016-12-04 11:54
Just look at KC, how long did he being in shares invedtment. At the end of the day he said he achieved financial freedom NOT through investment.
2016-12-04 12:01
This 3iii KYY talk 3 talk4.....golden rule is already a proven investment tech....it is proven by I3 sifu like ICON, Paperlane amd KYY mah...!!
If it is earnings growth, valuation share momentum tech mah....!!
{Not applicable tor Nestle & Pbank although got little bit a growth but failed in its over valuation}
And it is wonderful thing...it is self correcting too...if momentum...valuation....or growth falter u just sell mah...!!
2016-12-04 12:29
3ii...should understand...physic...of momentum mah....!!
An object will move with continue momentum unless and until obstructed mah....!! Raider still remember this important scientific law loh..!!
So if profit is good & growth with momentum...u buy loh...bcos this important "scientific law of momentum mah!!"
U only sell when the momentum is disrupted mah.....!!
It is already proven scientifically mah....!!
This Golden Rule is a marriage of Art & science loh...!!
2016-12-04 12:56
Posted by stockraider > Dec 4, 2016 12:56 PM | Report Abuse
3ii...should understand...physic...of momentum mah....!!
An object will move with continue momentum unless and until obstructed mah....!! Raider still remember this important scientific law loh..!!
So if profit is good & growth with momentum...u buy loh...bcos this important "scientific law of momentum mah!!"
U only sell when the momentum is disrupted mah.....!!
It is already proven scientifically mah....!!
This Golden Rule is a marriage of Art & science loh...!!
HAHAHA!
What A Big Joke Indeed!
Both 3i & Great Stock Raider are now in i3 forum debating!!
Welcome! WELCOME!!
Hmmm?
Looks like investlah going to "sau tong" or close shop soon?
2016-12-04 13:02
"his Golden Rule is a marriage of Art & science loh...!!" quote from the Great StockRaider. What is the purpose of art? To make something ordinary looking expensive for people to purchase. What is the purpose of science? What do you think?Of course science is to give scientic explanation to cut down necessary debates from all sides. Why you have to combine the two? Why?
2016-12-04 13:14
Golden Rule System....let raider explain loh...!!
"Golden"... It is an investment tech....as u all know Investment is an ART loh.....!! The Golden investment system therefore an Art mah...!!
Rules....It is better follow a discipline approach loh...!! Of course u can associate rules with law....but raider want u to be more serious loh....!!
If u break a minor rule...sometime u may get away with it....but sometime u get away by paying a small fine loh...!! Just like traffic offence loh...!!
Scientific Rules much more serious loh...!! If u mix potassium with Acid u get a very serious big explosion...it is already always proven scientifically..no arguement...u pay for your life loh..!!
"Rule"....therefore must be scentifically adhere to loh...u pay for your life...if u break it loh...!! Therefore very scientific must adhere mah..!!
Thats why marriage of powerful art & science combination of "Golden Rule"...pls follow seriously with discipline when invest loh...!!
2016-12-04 13:33
I DO NOT care whether it is GOLDEN or SOSTUPID rule MOST important is proven make MONEY rule. :)
2016-12-04 13:35
Benjamin Graham said "the companies are lacking the fundamentals of a long-lasting stable company because" it lacks a art and science combination and so how can the share price go up eventually.
StockRaider is a Genius just like Benjamin Graham and Warren Buffett.
2016-12-04 13:37
"Benjamin Graham said "the companies are lacking the fundamentals of a long-lasting stable company because" it lacks a art and science combination and so how can the share price go up eventually."
The above are the findings of Bgraham...intelligent investment & margin of safety of investment loh...!! U can call these Shaolin Kung Fu mah....!!
For "Golden Rule"...it is like karate another form of martial art...that practise momentum investment...with a combination of art & science mah....!!
Don get raider wrong, i m not saying Shaolin no good or karate no good loh.....!!
If Shao Lin suit u...use shaolin mah....if karate suit u...use karate loh.....!!
2016-12-04 13:50
Be careful when playing momentum. Following the trend may appear to be your friend, but this can quickly turn into a foe you had never bargained for.
I just love to BFS, STS. :-)
I have posted on momentum play here:
http://klse.i3investor.com/servlets/forum/903145674.jsp
2016-12-04 14:11
( migrated to NZ, still want to teach Malaysians how to invest in Malaysia.....so old, still need to work so hard....how successful an investor can he be? And, how much he knows about Malaysian businesses living in NZ? He and his FA alone can survive in the KLSE jungle...?....that is pure misleading the general public. )
2016-12-04 14:13
and his FA alone can survive in the KLSE jungle...?....that is pure misleading
If that is true, foreign brokerages do not need to set up local offices. Can just do by computers from NY.
2016-12-04 14:15
Stockmammy...no wonder...u act like a "mammy"...people migrate to NZ but want to advise msia investor so what ??
Cannot meh ? People have a right to earnings mah....!!
Just like people says KYY so rich...still want to blog & advice investment meh ?
Raider will give the same answer....cannot meh...it is his right mah..!
2016-12-04 14:19
KC use taichi style...KYY use kungfu style....both can argue about investing method... but neither can compared to our grandmaster guru, warren buffett....
2016-12-04 14:33
It's a philosophical issue for me.
Fundamental issue .
Equipped with FA, living in Nz can survive in KLSE jungle?
2016-12-04 14:48
FA EQUIP CAN SURVIVE ANY WHERE LOH....!!
FUNDAMENTAL OF INTELLIGENT INVESTOR B GRAHAM SIFU MAH...!!
2016-12-04 14:52
Wah...from IP can track people. Scary
http://www.twgreatdaily.com/cat98/node1360618
2016-12-04 14:59
John Lu, i can assure you that a lot of our IP's are being tracked in i3....we might as well reveal our full name with IC copy here...
The dumbest fools are the ones who keep coming new ids...they think they are smart...but there are people here way way smarter! :)
Posted by John Lu > Dec 4, 2016 02:59 PM | Report Abuse
Wah...from IP can track people. Scary
http://www.twgreatdaily.com/cat98/node1360618
2016-12-04 15:07
of course koon is not gangster...but he can be gangster mastermind.. he can give order to higher authority to track anyone who badmouth him...very scary lor.....
2016-12-04 19:34
betul itu....sebab blog koon agak istimewa....dia tak bagi orang komen dalam blog dia....malah hak keistimewaan ini cuma ada kat koon koon sahaja...
2016-12-04 19:56
Posted by stockmanmy > Dec 4, 2016 02:13 PM | Report Abuse
( migrated to NZ, still want to teach Malaysians how to invest in Malaysia.....so old, still need to work so hard....how successful an investor can he be? And, how much he knows about Malaysian businesses living in NZ? He and his FA alone can survive in the KLSE jungle...?....that is pure misleading the general public. )
The greatest pong lan pa fellow I have ever met, where do I mislead you?
From all the records of my stock pick portfolios set up in i3investors, all the articles I wrote about in i3investor, which part of them mislead you?
Have you written anything useful at all to share with us, besides all the bullshit?
2016-12-04 21:16
i figure KC does not teach FA for the money,rather he has a more noble ambition ie to educate the public on value investing.
i also figure KC maybe quite old,thus he has a lot of free time.
Btw KC style n my style is totally different,i do not hv to plp him...hahaha.
2016-12-04 21:35
still not ending ah? all these posts waste ppl time only.
pls focus back on how to make money next yr. or how to save ppl in 10mil next yr
2016-12-04 22:25
KC, you have my upmost respect. I wish the old man will realise his mistake & ego.
I'm painting my life not only with your FA teaching, but your attitude, discipline & humbleness
2016-12-04 23:42
Posted by coolio > Dec 4, 2016 11:42 PM | Report Abuse
KC, you have my upmost respect. I wish the old man will realise his mistake & ego.
I'm painting my life not only with your FA teaching, but your attitude, discipline & humbleness
That is the best reward for a teacher.
By the way, Mr. Koon has apologize to me and I have accepted it. He is a big man being able to do so publicly.
2016-12-05 08:12
Yeah...you are right paperplane
paperplane2016
8367 posts
Posted by paperplane2016 > Dec 4, 2016 10:25 PM | Report Abuse
still not ending ah? all these posts waste ppl time only.
pls focus back on how to make money next yr. or how to save ppl in 10mil next yr
2016-12-05 08:18
KC
Managing other people money
Serves you right for being so naive.
First you got nio license, you not working for a licensed investment adviser.
Managing own money is stressful enough, other than FD......
Managing other people money is a very stressful job with market subject to all kinds of uncertainties.
Just naive or think you are God......
Me? I will refuse it out right. I always refuse such requests....except when I was 20 and too young
Anyway those who know, , do
Those who don't , teach
So, you want to promote from don't to do?
Too bad.
2016-12-05 08:42
in my opinion, cannot do it properly
d by stockraider > Dec 4, 2016 02:19 PM | Report Abuse
Stockmammy...no wonder...u act like a "mammy"...people migrate to NZ but want to advise msia investor so what ??
Cannot meh ?
2016-12-05 08:48
I think this has gone a bit too far.
Two years ago, I started with "0" knowledge of Stock evaluation and I had read KCChong's writing and benefitted from it.
I took up his course and took me a long time because I have to work for a living and his course is just a part, part-time work for me.
And, I like him as he never pushes but answers my questions whenever I ask. Thank you KC.
Chinese has a saying, "A family has an oldie is like having a treasure in the house".
There are a few oldies here in i3. Thank goodness.
Why shouldn't they be here? Is this place exclusive to you or anybody?
Don't go away, KC, Icon8888, KYY... including Stockmanmy....
You people light up this place. But turning personal and rub into wounds is really a step to far for the environment.
2016-12-05 09:01
hahaha
On 28 Feb this year, I wrote a blog and let the world know my choice for the rest of this year. Designed not to make any one rich but enough to protect wealth, to grow ewalth, a diversified portfolio.
Bornoil, AAX, Tguan, VS, KESM, RHB, Scientex
http://klse.i3investor.com/blogs/stockman/92112.jsp
Now, towards the end of the year, my idea is
CSC Steel, Lihen, FLHB, Canone plus 1 or 2 export stocks.
No need to do any thing else. Blessings will come , can relax and enjoy.
For the rest of the readers.....not my words, I found it some where :
"In my opinion, having some rudimentary accounting knowledge is sufficient to understand the financial health of a company. In fact, possessing a good business sense is far more important than having strong accounting and economics knowledge. In his book -- The Intelligent Investor, Ben Graham stated that “investment is most intelligent when it is most businesslike”. It has also been proven time and time again and the statement is still valid until now. The failure of LTCM (Long-Term Capital Management) is the best example. The fund was managed by many famous finance professors and two Nobel Prize winners, but in a short period of time it lost $4.4 billion of its $4.7 billion in capital and the failure nearly blew up the world's financial system in 1998."
===================
2016-12-05 12:17
kc,
above in response to you
===============
The greatest pong lan pa fellow I have ever met, where do I mislead you?
2016-12-05 12:20
CSC Steel, Lihen, FLHB, Canone plus 1 or 2 export stocks.
its the best insurance money can buy against currency turmoil...and if no turmoil, so what, ?
Now, that is business sense.
2016-12-05 12:24
job..
In America, PCness lost...Trump wins.
Political correctness not necessary now.
beware those wearing smiling faces.
2016-12-05 12:26
Posted by stockmanmy > Dec 5, 2016 12:20 PM | Report Abuse
kc,
above in response to you
===============
The greatest pong lan pa fellow I have ever met, where do I mislead you?
Me: But my question to you was "Where did I mislead you?" in response to your sweeping statement below,
Posted by stockmanmy > Dec 4, 2016 02:13 PM | Report Abuse
( migrated to NZ, still want to teach Malaysians how to invest in Malaysia.....so old, still need to work so hard....how successful an investor can he be? And, how much he knows about Malaysian businesses living in NZ? He and his FA alone can survive in the KLSE jungle...?....that is pure misleading the general public. )
There are hundreds of people saying buying this stock and that stock. A few months later some stocks up and some stocks down, and they will brag about those stocks which have gone up.
Hundreds of them.
Go and write a proper analysis and come with some comprehensive reports to show you your process and methodologies of stock selection. Process trump outcome.
2016-12-05 12:29
YES raider support KC view, come up with proper analysis mah...!!
The way mammy say this good....that no good....come from pasar malam loh.....!!
2016-12-05 12:33
as for Trump
Donald Trump.....mark my words, nothing good ever comes out of Donald Trump.
Trump will be impeached within these 4 years. He will break the law and give excuse to impeach him for that is who Trump really is. Trump's interest is Trump and only Trump , no one else, nothing else.
Trump is just a boy child, kindergartener who can bankrupt casinos, stiff workers and contractors, cheat students, > 2,000 law suits against him...started the birther movement about Obama not born in America.
Right now, we are witnessing a sort of honeymoon for him, the normalisation of a monster....It will not last.
The Republican party (together with the Democrats) will push him off the cliff for a very standard Republican in the form of Mike Pence.
2016-12-05 12:57
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Rchi better you put your hard earning money in fixed deposit
2016-12-04 11:51