kcchongnz blog
Long term return from investing in Bursa kcchongnz
“It is most important for KC Chong to show proof because he is selling his programme on share investment. …..KC Chong’s sole purpose is to blow his trumpet and begging others to buy his product.”
[Posted by Flintstones > Dec 2, 2016 12:05 PM | Report Abuse
Posted by paperplane2016 > Dec 2, 2016 12:03 PM | Report Abuse
hahahaha.,.,.,.,.,.,kc chong write fancy FA studies, but still fail to make money.
Reason: Tak ADA COMMON SENSE mah!!!!
hahahaaaaaaaaaaaaaaaa]
[Posted by Koon Bee > Nov 7, 2016 12:35 AM | Report Abuse
Yes...i think his (KC Chong) 2013 stock pick is tikam only]
Motivated by the comments above, I have written this article, “Return from investing in Bursa, my experience” recently showing documented proof of the four years’ return of the investing strategies using the ColdEye 5 yardsticks, and “In search of excellence, investing in good companies here”:
http://klse.i3investor.com/blogs/kcchongnz/112706.jsp
The portfolios using the above methods returned 280% and 102% respectively in the four years and three and a half years investing period respectively, beating the single digit return of the broad market during the same periods, by wide margins.
Shortly after that I shared my “GE13 Watch list” and “Stock Pick Challenge 2013 2H” in my article, “2017 Reflection on Fundamental Value Investing in Bursa” in this forum, as described in the link below.
http://klse.i3investor.com/blogs/kcchongnz/112906.jsp
The portfolio of 10 stocks in GE13 Watch returned 132.1%, or a median of 94% in the four years’ period, widely out-performed the gain of the broad market KLCI of just 11.1% and the FTSE Bursa Small-Cap Index of 33.9%. The compounded annual return of the portfolio (CAR) is high at 23.4% for the last four years.
The portfolio of “Stock Pick Challenge 2013 2H” returned an average of 137% over the three and a half years’ period, while the broad market remained flat during the same period. The CAR is 25%.
Three days later, in my article, “Investing through the tough years”, I summarized the return of 13 stocks I shared in i3investor in 2014.
The portfolio, overall, did very well too with 10 winners 3 losers. the average return over the 2-3 years’ period was 44.3%, or a median return of 32.3%, compared to the drop of the market, including dividends, of 5.2%, or a positive alpha of 49.5%. The CAR of the portfolio over the 2-3 years was a commendable 15.8%.
All the stocks in the above portfolios were invested purely using the fundamental value investing (FA) approach. Does the above answer the skepticism of this person below?
]Posted by stockmanmy > Dec 4, 2016 02:15 PM | Report Abuse
and his FA alone can survive in the KLSE jungle...?....that is pure misleading]
Here comes this comment,
[Posted by paperplane2016 > Jan 6, 2017 12:11 AM | Report Abuse
Kcchongnz, it is unfair to show only few years track record. To be honest, any Dom dick harry can make money pass few years. How about showing some track records of at least 10years or even 97,98? Then you can maybe say your results proven that value investing works. ]
I would like to respond to the above statement with below.
Investing for the long term in the US market
In a paper titled “The Super Investors of Graham and Doddsville”, Warren Buffet showed the track records of each of nine disciples of Benjamin Graham showing that they all generated annual compounded returns of between 18% and 29% over track records lasting between 13 to 28 years, out-performing the broad market by wide margins. Let’s have a look at their profit history...
|
Investor |
No. of Yrs |
Annualised Return |
S&P / Dow Return |
|
Buffett Partnership |
13 |
29.5% |
7.4 % (Dow) |
|
Walter Schloss |
28 |
21.3% |
8.4% |
|
Tweedy Browne |
16 |
20% |
7% |
|
Bill Ruane |
14 |
18.2% |
10% |
|
Charlie Munger |
14 |
19.8% |
5.0% (Dow) |
|
Pacific Partners |
18 |
32.9% |
7.8% |
|
Perlmeter Investments |
18 |
23% |
7.0 % (Dow) |
Take for example of the investing experience of Walter Schloss who had made a CAR of 21.3% over a 28 years investing period. RM1000 invested 28 years ago becomes RM223000, or a gain of 2220%! How can one who made 120% a year, lose 20% another year and so on so forth can beat one who makes 2220% in the long term?
Most recently more investors such as Joel Greenblatt, Seth Klarmen, Howard Marks, Mohnish Pabrai, Peter Lynch and many other fundamental value investing fund managers have all generated high return of over 20% CAR over an extended period of time.
http://klse.i3investor.com/blogs/kcchongnz/88007.jsp
“I want your personal 10-years records in Bursa”. I anticipated that. But I only started blogging in i3investor about 5 years ago. How can I provide you with documented proof for a 10-years’ period?
For Bursa, there is no academic research carried out on this, and none has provided documented proof that FVI works for the long term, as far as I know, unlike in the US market. What I can do is to do a simplistic back testing on those stocks I owned in the GE13 Watch list and those in the “Stock pick challenge 2013 2H” for 10 years investing period, and see if holding them for 10 years can provide a good CAR.
Ten years’ compounded return of some stocks in Bursa
Table 1 in the Appendix shows the returns of the individual stocks in the combined portfolio of 19 stocks invested from 1st March 2006 to 29th February 2016 which I have written about. The period of study is reasonable representative as it has included a complete cycle of boom and bust.
Some of the stocks have shorter listing history and the actual shorter periods of listing are used. Some, for example Jobstreet, has no complete records and partial and shorter records were used. The share price data were obtained from the adjusted prices given by Yahoo Finance as shown in the link below.
http://finance.yahoo.com/q/hp?s=9598.KL&a=02&b=1&c=2006&d=01&e=29&f=2016&g=d
It is assumed that a total of RM100000 was invested in equal amount for each of the 19 stocks in the portfolio.
In this 10-year period, KLCI has increased by 80%, or a CAR of 6%, an underperformance compared to the historical long-term return of about CAR of 10%.
However, the portfolio of the 19 stocks has returned 470%, or a CAR of 24.4% over the 10-year period. Seventeen out of the nineteen stocks made positive returns, ranging from a low of 49% for Plenitude to a high of 1843% for SKP Resources. Four of them are 10-baggers; SKP Resources (+1843%), Datasonic (+1675%), Pintaras Jaya (+1424%), and CBIP (+1005%). The CAR of these 10-baggers range from 27.2% to 34.5% for those stocks which have more than 10 years’ records.
What is the risk in investing in these stocks for the long-term?
There are only two losers; Pantech and Fibon, with only a minimal loss of only 22%, and one other under-performer in Plenitude, which only managed to garner a cumulative return of 49% for the last ten years, underperforming the broad market of 80%. The return of the portfolio will be dismay if the investment was focus on these few stock. Hence, it pays to diversify as discussed in the fourth point in my last article.
Conclusions
In the most matured stock exchange in US and Europe, fundamental value investing has shown to be providing good long-term return from various academic research and documented proofs, beating the broad market indices by wide margins. My little experience investing in Bursa following the FVI also yielded satisfactory results as shown in my documented proofs given in i3investor, and it works very well on its own.
I know it is very hard to convince others that FVI works. I don’t expect you to listen to me. I do know some make big money from using other methods. Just do what is suitable and has worked for you.
"I’m always amazed that someone would say they weren’t a value investor – I wouldn’t admit it even if I wasn’t. It just seems silly to think about investing any other way." Thomas Gayner, “the evolution of a value investor”.
K C Chong
Appendix
Table 1: 10-year return of some stocks in Bursa
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Discussions
10 people like this. Showing 50 of 84 comments
You cannot be always right. Be humble to admit your mistake.
☺
Probably relevant to stockraider.
2017-01-08 21:43
Paperplane2016, I am not reach the status of being called Sifu. I am just an ordinary investors cum traders . You can address me MG will do.
2017-01-08 21:45
Posted by donfollowblindly > Jan 8, 2017 02:46 PM | Report Abuse
Agree. If he really that good he should be richer than KYY.
Wow, excellent logic. Where did you acquire your level of EQ?
2017-01-08 21:56
Posted by donfollowblindly > Jan 8, 2017 02:52 PM | Report Abuse
Ask him to name 1 ctr where we can find his name in annual report. Is it Fibon, FL Bhd, Favco, Magni, Latitude or what?
Another demonstration of "great" IQ. Which elite school/u you were trained from?
2017-01-08 21:58
Posted by John Lu > Jan 8, 2017 02:07 PM | Report Abuse
KC are good in theory but not all can be executed.
纸上谈兵 is very easy.
Posted by paperplane2016 > Jan 8, 2017 08:47 PM | Report Abuse
John Lu made q good point there. I support his view
Posted by stockraider > Jan 8, 2017 03:03 PM | Report Abuse
KC OK,
HIS RETURN DOCUMENTED MAH....DIFFICULT TO CHEAT LOH....!!
2017-01-08 22:01
Posted by Penang_lang > Jan 8, 2017 09:19 PM | Report Abuse
I see Chong Khong Soong and Chong Ik Poh name in top 30 Pintaras 2016 AR shareholders but both not KC Chong. So you are bluffing MG9231.
Posted by MG9231 > Jan 8, 2017 09:04 PM | Report Abuse
I can see KC's name in Pintaras why others can't? This shows KC “有料到“，he preaches what he said.
Penang lang, I see MG as a man of full of happiness, wisdom, humility and good humour too.
2017-01-08 22:08
Posted by mike90 > Jan 8, 2017 10:17 PM | Report Abuse
KC, do you mind to expose, do your portfolio over RM1M?
TQ.
Sorry, i don't like to tell the whole world how much I have, or how little I have.
In all my articles about return, it is about the satisfactory long-term return basing on the fundamental value investing through my own experience. It is not about how rich I am, or how poor I am.
2017-01-08 22:31
Posted by mike90 > Jan 8, 2017 10:33 PM | Report Abuse
Satisfactory long term return is? 8-10% per annum?
The bank fixed deposit rate is about 3.5%. If you invest in the stock market with the risks you are taking, you should earn a risk premium. A 6.5% risk premium would be a reasonable expectation, and hence a return of 10% a year is good.
Say if you start saving RM1000 a month, and invest with a return of 10%, after 30 years doing it religiously, you would have about RM2m.
If you can get a return like what Water Schloss get of 21.3% over 30 years, you would have RM18.4m.
2017-01-08 22:46
Posted by donfollowblindly > Jan 8, 2017 03:00 PM | Report Abuse
But this KC Chong very boastful mah with so call high return when no documentary proof he actually own the shares he promoted. Like I can say Public Bank is a good to own since listing with very high return, do you have evidence I own it?
Four years ago, Tan Kean Wei asked me to share my portfolio of shares I had then. I told him what I owned, and written numerous analysis and reports explaining why I own them. It is nothing about plucking any stock from the sky.
Apa lu mau lagi?
Actually the sharing here is about how FVI can provide you with extra-ordinary return, with the examples of portfolios after portfolios of stocks written and published four years ago. I advocate you to embark with this FVI to build long-term wealth.
It is never about me, whether how much money I have/have not made, although I do encourage you to learn FVI from me.
It is your choice.
2017-01-08 23:25
Bull market, everyone is a sifu.
Especially those a bit selective and those who hold a bit longer than the rest.
While fund managers had a hard time with CI going no where, quite a lot of Chinese companies did well.
Posted by 3iii > Jan 8, 2017 11:36 PM | Report Abuse
Unknown to many, it is actually very easy to get consistent returns of between 8% and 10% annually over the long term in KLSE in selected stocks.
2017-01-08 23:41
Posted by 3iii > Jan 8, 2017 11:36 PM | Report Abuse
Unknown to many, it is actually very easy to get consistent returns of between 8% and 10% annually over the long term in KLSE in selected stocks.
THIS 3iii TALK LIKE A HERO ACT LIKE A PONDAN LOH....!!
WHEN RAIDER CHALLENGE 3iii TO AN INVESTMENT DUEL, WHO DON DARE TO TAKE UP THE CHALLENGE LOH...!!
IF SO EASY TAKE UP RAIDER CHALLENGE LOH....!!
2017-01-09 00:12
Dare not answer mean don't have? At 63 years old cannot have?
Posted by mike90 > Jan 8, 2017 10:17 PM | Report Abuse
KC, do you mind to expose, do your portfolio over RM1M?
TQ.
2017-01-09 02:42
You only know how to talk rubbish all day long. Useless jobless stalker
Posted by donfollowblindly > Jan 9, 2017 02:42 AM | Report Abuse
Dare not answer mean don't have? At 63 years old cannot have?
Posted by mike90 > Jan 8, 2017 10:17 PM | Report Abuse
KC, do you mind to expose, do your portfolio over RM1M?
TQ.
2017-01-09 02:53
KC never bragged about his wealth. He only promotes FVI to newbies for their long term wealth creation, for their old age. BUT..FVI are more written and practised by orang putih for the more matured and established markets. Orang putih are different breed, different culture. Orang Asia esp the Yellow skin talks more of business sense.. How???
2017-01-09 08:56
Posted by SALAM > Jan 9, 2017 08:56 AM | Report Abuse
KC never bragged about his wealth. He only promotes FVI to newbies for their long term wealth creation, for their old age. BUT..FVI are more written and practised by orang putih for the more matured and established markets. Orang putih are different breed, different culture. Orang Asia esp the Yellow skin talks more of business sense.. How???
One of the secrets of success in investing is to stay away from the crowd. If you do the same thing as all others do, how can you get better result than others?
2017-01-09 09:29
I like that......hahaha
========================
Orang Asia esp the Yellow skin talks more of business sense.. How???
2017-01-09 09:30
Its called round hole to round peg.
If KLSE boring like NZ, I also have to go ROIC.
2017-01-09 09:35
Posted by stockmanmy > Jan 9, 2017 09:35 AM | Report Abuse
Its called round hole to round peg.
It is more like people eat shit you eat shit too.
2017-01-09 09:52
Posted by SALAM > Jan 9, 2017 08:56 AM | Report Abuse
KC never bragged about his wealth. He only promotes FVI to newbies for their long term wealth creation, for their old age. BUT..FVI are more written and practised by orang putih for the more matured and established markets. Orang putih are different breed, different culture. Orang Asia esp the Yellow skin talks more of business sense.. How???
One of the secrets of success in investing is to stay away from the crowd. If you do the same thing as all others do, how can you get better result than others?
KC,
THERE IS NO DIFF IN BUYING INTO OLANG PUTIH STOCK OR OLANG KUNING STOCK...AND END OF THE DAY FUNDAMENTAL VALUE COUNTS LOH...!!
SHARE PRICE SHORT TERM IS VOTING MACHINE
LONG TERM IS A WEIGHING MACHINE MAH
VALUE INVESTMENT IS STILL THE BEST, JUST HAVE PATIENCE & DISCIPLINE LOH..!!
2017-01-09 10:00
-the greatest player in Malaysia , someone vastly richer than KYY , told me.....the way to play the stock market is to charge first when you see people charging ......eat shit if you see people want to eat shit.....and charge out when it is time to charge out.
The crowd makes the market....play with them, make use of them.
Be brave.
You will learn with experience......and of course with plenty of privileged information.
-----
It is more like people eat shit you eat shit too.
2017-01-09 11:13
Posted by stockmanmy > Jan 9, 2017 11:13 AM | Report Abuse
-the greatest player in Malaysia , someone vastly richer than KYY , told me.....the way to play the stock market is to charge first when you see people charging ......eat shit if you see people want to eat shit.....and charge out when it is time to charge out.
The crowd makes the market....play with them, make use of them.
Be brave.
Oh, that is the way you "play" the stock market. My advice is keep it to yourself, rather than trying to "teach" others.
Ever wonder why 90% of retail investors lost money?
2017-01-09 11:19
Posted by stockmanmy > Jan 9, 2017 11:13 AM | Report Abuse
-the greatest player in Malaysia , someone vastly richer than KYY , told me.....the way to play the stock market is to charge first when you see people charging ......eat shit if you see people want to eat shit.....and charge out when it is time to charge out.
The crowd makes the market....play with them, make use of them.
Be brave.
You will learn with experience......and of course with plenty of privileged information.
U TALK RUBBISH LOH...!
DON TELL ME PEOPLE LIKE QUEK LENG CHAN AND TEH HIONG PIOW IT SHIT MEH ??
2017-01-09 11:20
I will not reveal the identity of the gentleman in question.....but that is how all multi billionaires started their fortune even Li Kashing.
You have to be brave if you want a killing.
2017-01-09 11:28
I will not reveal the identity of the gentleman in question.....but that is how all multi billionaires started their fortune even Li Kashing.
You have to be brave if you want a killing.
MUST BR AHPEK IN THE PASAR MALAM....NO STANDARD LOH...!!
2017-01-09 11:42
Once you are multi billionaire, nobody will call you pasar malam!!
COULD BE MULTI BILLIONAIRE BUT NOT NECESSARY GOOD STOCK PLAYER LOH..!!
JUST LIKE KYY MULTI MILLIONAIRE NO GOOD STOCK PLAYER....LOST TO AH FAH THE VEGETABLE SELLER IN PUDU MAH....!!
2017-01-09 11:47
ALREADY PROVEN MAH!!...KYY MAKE A LOSS OF 15%, POSITION 57...IN I3...2016.. COMPETITION OUT OF 72 IN THE CLASS LOH....!!
NOT EVEN...T0P 30 CAN SAY MASTER SIFU KYY PANLAI LEH ?
I HEARD THE LADY IN PUDU AH FAH...SELLING VEGETABLE IN PUDU MKT...BEAT KYY FLAT LOH...!!
SHE MAKES 3.5% PA BY PUTTING HER MONEY IN PUBLIC BANK FIXED DEPOSITS MAH....!!
CAN U ALL SEE AH FAH MAKE 3.5% PA AND KYY LOSE 15% PA LOH....!!
LIKE THAT KYY ALSO, WANT TO SHOW OFF LOH...!!
NOT EMBRASSING MEH ??
2017-01-09 11:49
people who make it big time, and I mean billions ...have seen more in one life time than you in a hundred life times.
Big brother keeps making money from the market
Little brother with the same information keeps losing money.
It's a talent , a gift that is so difficult to pass on.
And he was trying to tutor me , not lecture me. Sharing his experiences with me.
2017-01-09 11:52
Big brother keeps making money from the market
Little brother with the same information keeps losing money.
It's a talent , a gift that is so difficult to pass on.
And he was trying to tutor me , not lecture me. Sharing his experiences with me.
YES HE TUTOR U BASED ON AHPEK PASAR MALAM SHARE INVESTMENT STYLE LOH...!
HE MAYBE JUST LOUSY IN INVESTMENT LOH....!!
AT LEAST KYY GOT HIS GOLDEN RULE MAH...!!
2017-01-09 11:58
Once you are multi billionaire, you can retire and nobody will call you pasar malam.
2017-01-09 12:01
raid
all I can say is you are very naive and worse....no morals to say KYY is a crook.
2017-01-09 12:12
They took their risks and won...
you can either bad mouth them or you can try to learn some thing....It is all up to you.
2017-01-09 12:15
U talk rubbish...easily manipulated loh...!!
Just people rich....u say they very good stock investor loh...!!
Ask yourself why they make their monies mah...!!
THE FAMOUS AHFAH FROM PUDU MARKET LOH....!!
SHE MAKE MONIES FROM SELLING VEGETABLE BUT NOT STOCK MARKET MAH..!!
2017-01-09 12:15
Posted by stockmanmy > Jan 9, 2017 12:19 PM | Report Abuse
you are just plain stupid....no cure.
STOCKMAMMY IS LIKE CRY BABIES LOH...!!
HE BULLIED KC....BUT NOT RAIDER LOH....!!
Posted by kcchongnz > Jan 9, 2017 11:19 AM | Report Abuse
Posted by stockmanmy > Jan 9, 2017 11:13 AM | Report Abuse
-the greatest player in Malaysia , someone vastly richer than KYY , told me.....the way to play the stock market is to charge first when you see people charging ......eat shit if you see people want to eat shit.....and charge out when it is time to charge out.
The crowd makes the market....play with them, make use of them.
Be brave.
Oh, that is the way you "play" the stock market. My advice is keep it to yourself, rather than trying to "teach" others.
Ever wonder why 90% of retail investors lost money?
2017-01-09 13:07
LINCOLN,
eat shit if you see people want to eat shit.....and charge out when it is time to charge out.
The crowd makes the market....play with them, make use of them.
Be brave.
PEOPLE WHO PROMOTE EAT SHIT....U STILL LIKE MEH ?
U LIKE TO EAT SHIT MEH ?
2017-01-09 16:02
Stockraider,
Not bad , today learn a eat shit theory of stock market free lesson from a so called accountant.
Posted by stockmanmy > Jan 9, 2017 11:13 AM | Report Abuse
-the greatest player in Malaysia , someone vastly richer than KYY , told me.....the way to play the stock market is to charge first when you see people charging ......eat shit if you see people want to eat shit.....and charge out when it is time to charge out.
The crowd makes the market....play with them, make use of them.
Be brave.
You will learn with experience......and of course with plenty of privileged information.
U TALK RUBBISH LOH...!
DON TELL ME PEOPLE LIKE QUEK LENG CHAN AND TEH HIONG PIOW IT SHIT MEH ??
2017-01-09 16:22
I think a multi millionaire and a billionaire ask him to eat shit...!!
i think he will loh...!!
2017-01-09 16:24
All arguments here will yield no results. Better take care of yr portfolio lah... :P
2017-01-09 22:12
The only way to get the best of an argument ........................... is to avoid it. (clap)
2017-01-10 11:56
stockmanmy, yeah, many people make money daytrading.
The most famous one is the japanese trader BNF.
But do note, close to zero people have the mental fortitude needed to make money day trading.
2017-01-11 22:00
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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....
MG9231
In that case, Fong Siling could not be Cold eyes.
2017-01-08 21:42