kcchongnz blog
Experience of Fundamental Value Investing of a retail investor, Ho KL kcchongnz
[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 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%.
Today on 11th January 2017, I receive an inspiring email from someone with the title, “Value investing results 2016”, who shares with me his experience in FVI. I would like to take this opportunity to share with you guys too as shown in the Attachment 2 in the Appendix.
FVI by Ho Keng Leng from middle of year 2015
Using FVI, Keng Leng invested in a diversified portfolio of 15 stocks, using the mainly the Magic Formula principle of investing. For those who wish to know something about Magic Formula Investing, please refer to my latest article here,
http://klse.i3investor.com/blogs/kcchongnz/113511.jsp
He augments it with good dividend yield, and some growth prospects of the companies he invested in. Table 1 in the appendix shows the portfolio of 15 stocks he has invested in.
During the one and a half year investing period from mid-2015 to today’s closing on 11th January 2017, the portfolio of 15 stocks returned an average of 42.8%, or a Median return of 33%, while the broad market lost 3.1% during the same period. The excess return, alpha, is a whopping 46%.
Eleven out of 15 stocks have positive return, or a success rate of 73%, bearing in mind the broad market went down during this period.
Here is the interesting part which was not highlighted by Keng Leng.
The four stocks which have negative return lost minimal amount; Latitude (-0.2%), Pintaras (-5.3%), Focus Lumber (-14.1%), and the worst is ECS at a loss of only 16.6%.
Look at those positive returns. George Kent, Thong Guan and KESM returned 145.2%, 126.3% and 112.4% respectively in less than one and a half year. Others such as Perstima, Magni, Classic Scenic, Hevea and Elsoft also returned handsomely from 33% to 66.2%.
That is the beauty of proven investing strategies, well thought of process and methodologies in FVI, couple with the proper mind set in investing.
“Heads I win big; Tails I don’t lose much”
“Take care of the downside; the upside will take care of itself”
Well done Keng Leng, and keep it up.
KC
Appendix
Attachment 1
Table 1: Return of portfolio of Ho Keng Leng
|
Attachment 2 Email from Ho Keng Leng on
|
11th January 2017 10:35 AM (7 hours ago) |
|||
Dear Dr KC, I am writing to thank you for your guidance in stock investing. I started my stock investment about four years ago. My strategy then was to follow blindly the recommendations and target prices of analysts from some famous investment banks. My investment returns were poor. Since joining your course in 2015, I adopt the following value investment strategy: - identify the stocks which fulfill the magic formula criteria. - preferably with good and stable dividends. - preferable with story of future profit growth. - Diversify, with about 15 stocks in portfolio. - Buy only when they are selling cheap. Buy more in times of bad market sentiments or when the stocks were sold down excessively. - Staggered entry. If stocks downtrend, average down cautiously. - Preferably not to chase bullish stocks. Let winners run. - Hold intermediate to long term, only consider to sell portions or all when share price rising too fast, approaching or reaching target price, or there is change of fundamentals. This is simple strategy, but can be challenging to follow at times. For instance, it is easy to say to buy during bad times or sell down. This needs a lot of courage to do. But these are the stocks that give the best returns in my limited experience. The facts that I do not use margins and the money I use for stock investment is not or any near future commitments do help. I have invested in a number of stocks since second half of 2015 as followings: Stocks ( Average invested price adjusted for bonus ) Cscenic ( 1.21 ) ECS ( 1.57) Elsoft ( 1.06 ) FLBHD ( 2.06 ) Gkent ( 1.240 ) Hexza ( 0.783 ) Homeritz (0.889 ) Hevea ( 1.126 ) Kesm (4.718) Latitud ( 5.40 ) Magni ( 2.633) Perstim ( 4.176 ) Ptaras ( 3.60 ) Tguan ( 1.900) Willow ( 0.696).
Of these 15 stocks I have invested, only 4 ( ECS, FLBHD, Latitud, Ptaras ) are losers. The other 11 are winners, some of them with gain > 100 %. For full calender year of 2016, with a capital of Rm X at beginning of year, I have gained total Rm 1.1942X or 19.42 % of return in both capital appreciation and dividends. To me, the result of this investment strategy is excellent. I cannot ask for more. Most importantly, I may have acquired the most important lifelong financial knowledge or tool to achieve my personal financial goal. For a small amount of fee that I have paid you, I have gained multiple times of return just within a year with the knowledge you pass to me. Most importantly, this knowledge can be applied for lifelong. Value investing strategy works for me, at least for year 2016, which is a challenging year for stock investors. It is still too early to conclude for long term, but I am confident and optimistic that it shall work in the future as well. Again, thank you very much KC. I wish you and family a happy, healthy and prosperous new year. Best regards, Ho KL
|
More articles on kcchongnz blog
Insas Warrants WC and Its Valuation kcchongnz
Created by kcchongnz | Jan 22, 2024
Which to buy, Insas or Insas WC?
Isn’t this the most undervalued stock in Bursa?: Insas Berhad by Kcchongnz
Created by kcchongnz | Jan 15, 2024
2024 New Year Reflection Investing in the Stock Market: Timing the Market
Created by kcchongnz | Jan 01, 2024
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
10 people like this. Showing 17 of 17 comments
I've been reading your blogs, and i honestly, cannot for the life of me see why people are shooting you down other than jealousy or stupidity.
I personally, have read tons of investment books, and yet you're still able to school me in terms of theory and application.
Thank you.
2017-01-11 21:58
Hi, Sorry for keeping quiet in last few weeks.I had encountered GST problem and needed my personal involvement. Had just sorted out with the relevant department.Next week will take step to join your lesson. Cheers.
2017-01-12 11:01
Raider,
All the while KC, is a good KC is a good trainer and sifu loh...!!
2017-01-14 11:58
but what has paper returns from paper portfolios got to do with real returns and real money?
I think, very little.
and even in the case of real returns and real money, what has the past got to do with the future? If it is as simple as a straight line extrapolation, the CFA would not have to organise a Certificate Program in Investment Performance Measurement.
2017-01-14 12:16
Kc sifu has shown he is a good investment trainer & also his posting indicates he has deep knowledge of successful value investment loh..!
So a like kc is guy who have show good investment knowledge & good investment trainer should stand well as a good successful investor on his own right loh...!!
2017-01-14 12:31
Good pointers from good sifu, pointers for my own record purposes only i.e.
- Buy only when they are selling cheap. Buy more in times of bad market sentiments or when the stocks were sold down excessively.
BLee - Every sell down got a reason, if panic sell down not related to stock, then ok.
- Preferably not to chase bullish stocks. Let winners run
BLee - totally agreed.
- Hold intermediate to long term, only consider to sell portions or all when share price rising too fast, approaching or reaching target price, or there is change of fundamentals.
BLee - totally agreed.
- Money use for stock investment is not or any near future commitments do help.
BLee - Very difficult, risk management in-play, trying very hard for rotation play, i.e. no sell no buy..
Thanks KC and Ho for this good article.
2017-01-14 14:28
Another advertising..... Maybe should charge kc for advertising here
2017-01-15 00:23
Raider feel that paperlane remarks is unfair loh....!!
Kc has been kind and generous to share his vast financial knowledge and value investment,with us, why must people run him down leh ?
People with big heart like kc, we should offer him with gratitude and shower him with flowers loh...!!
Please run down on kc, let him continue to contribute to i3 for the overall betterment of i3 investors loh....!!
Kc is a savior to alot of naive newbies mah....!!
2017-01-15 12:22
I support kc, bcos i have learn alot from him, on investment, much more than what i have studied in the university.
Kc pls continue your good effort.
2017-01-15 12:34
KC is a terror in FVI. His Padini pick earned me enough to cover his FVI course, 2016 Pick and Foreign pick courses, not to mention with money left over for more teh tarik. I also have his Perstima, Scientx, Hexza, etc, etc. Don't play play with KC.
2017-01-15 12:36
Thank you very much for all the motivating comments here; Calvin Tan, Jon Choivo, 3iii, Chong Chin Meow, RonnieKimLondon, stockraider, BLee, ghoku, and ckkhen, not forgetting the "consistent" comments of stockmanny.
I appreciate very much.
2017-01-16 21:24
good sharing KC... just ignore those naysayers... there is no harm doing your teaching + advertisement on a willing buyer & willing seller basis...
2017-02-03 15:50
Post a Comment
Featured Posts
Apps
Top Articles
1
Nuclearinvestment
2
Good Articles to Share
3
AmInvest Research Reports
STRATEGY - Local Institutional Support Drive Upward Momentum
4
THE INVESTMENT APPROACH OF CALVIN TAN
MKHOP (5139) What Is Its Current Forward P/E and Intrinsic Value, Calvin Tan
5
6
THE INVESTMENT APPROACH OF CALVIN TAN
7
M+ Online Research Articles
8
KLSE Traders Update and Ideas
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
MQ Trading Signals
Stock
Time
Signal
Duration
Stock
Time
Signal
Duration
Featured Advertisers / Partners
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....
calvintaneng
KcChongNz is by far the soundest & best & safest one to follow in i3 forum.
It was my Johor Sifu MG9231 who first mentioned that KcChongNz is the only true Value Investor in the tradition of Dr. Neoh Soon Kean of Dynaquest.
Maybe KcChongNz picked these stocks that MG9231 also picked - Pintaras Jaya, Kumpulan Fima, Hexza, Kesm & other similar value growth stocks that MG9231 also bought.
2017-01-11 20:25