Four days ago, I have written an article, “Third quarter review of my first stock pick service for Bursa” in the link below,

http://klse.i3investor.com/blogs/kcchongnz/115211.jsp

The article described the average return of a portfolio of twelve stocks of 12.5% since inception 7 months ago, compared to the loss of 1.9% of the broad KLCI index during the same period. The excess return, alpha, of the portfolio is hence +14.4%.

Here came a comment,

[Posted by Flintstones > Feb 6, 2017 01:41 PM | Report Abuse

Kc chong, may I know what is the purpose of this article beside showing that you are lucky? Hows your subscription business doing so far?]

And here was my response,

[Flintstones,
Yes, luck plays a big part in investing. However, some investing strategies do have more luck than others, for example, the fundamental value investing I have been propagating does have more luck as I have shown you many portfolios of mine posted in i3investor.]

Less than six months ago, in August 2016, I have written an article, titled, “Invest in the regional markets” in the link below,

http://klse.i3investor.com/blogs/kcchongnz/102200.jsp

I explained that diversification of our investment into the regional markets in Singapore and Hong Kong makes a lot of sense. Firstly, for those who have substantial amount of wealth, it is good to have some investments overseas to hedge against the declining Ringgit as we have no idea what the future will hold for our Ringgit. Secondly, the regional markets in Singapore and Hong Kong were some of the cheapest at that time, and still are at present. Within these undervalued markets, simple fundamental screens such as the Magic Formula, dividend Yield, Value-growth investing, Graham net net etc can reveal many gems neglected and waiting to be discovered.

Those markets are also bigger, more transparent, and better corporate governance and hence investors have wider choice of companies to invest in, and feel safer investing in these markets.  The taxation in those countries are also substantially lower than in Malaysia which would enhance the after-tax return on our investments.

But how to invest in those markets? How to know which company to invest in?

Owing to the demand from my online investment course participants, we started a stock pick service for the stock markets in Singapore and Hong Kong. This provide a golden opportunity for those who wish to diversify their investments regionally.

For the last six months, 6 stocks, one in HKSE and five in SGX were introduced, and detail analysis were carried out with comprehensive reports published in our private website for participants to consider to invest. Besides, participants were furnished with monthly watch lists of stocks for them to consider investing in, mainly based on the investing strategies of the Magic Formula and dividend Yield.

The stock pick participants can also learn investing in a practical manner, or revise and carry on further learning from the service as various business analysis, financial statement analysis and interpretations, and various valuations exercises were carried out for those stocks selected.

Return of stock picks

Here is a review of the performance of our service after less than 6 months have passed when the first stock was introduced at the end of August 2016.

As of to date on 9 February 2017, the portfolio of 6 stock picks returned an average of 17.9%, or a Median return of 15.9%. In comparison, the average returns of the Straits Times Index and Hang Seng H-shares index within the same period was about 5%. the portfolio of stocks has outperformed its benchmark indices by about a wide margin of 13%.  

There were 5 gainers and only one loser. Four winners have double digit return at 51.6%, 21.8%, 19.3%, and 12.4%, and one in line with the broad market return of 4.7% during the same period.  The only loser is at a loss of just 2.4%.

“Heads we win big; tails we don’t lose much”. That is the very essence of fundamental value investing.

This return on investing in the stocks above has not taken into consideration that SGD and HKD have risen by about 5% and 9 % respectively to RM3.14 Ringgit and 57 sen now. If one has used his money in Malaysia to invest in those markets, the total return, with foreign exchange gain, will be well above 20%, in a matter of six months.

This shows that the fundamental approach of investing, utilized in the right manner, works well everywhere in the world, in the long-term, and often in the short term too. I hope the above investing outcome, and many more I have been writing about, have debunked these myths as mentioned by these guys below,

[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
He probably makes more money from his followers lah]

[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]

The Singapore and Hong Kong markets are still cheaper at PE of about 15, compared to 18 of KLCI and 23 of the US market. Besides there are also more choices for investing in those markets. They are hence good places to diversify your investments in the equity markets.

We also want to provide this opportunity to you too to invest in those markets in a safe manner with the FVI strategies, with the potential of higher returns over the long term.

If you have any intention to diversify your investment in those markets and wish to have some good guidance, please contact me at

ckc14training@gmail.com

We take pride for propagating plausible and proven fundamental value investing to the investing public for building long-term wealth slowly but surely, and providing a good service to the investing community at an affordable price, and we will be as happy when participants obtain good return as we do.

[Mxxxx, January 17 2017

My cost for M is RM2.30 and I am getting profit of 100%. Another counter is K is also making more than 100% for me. Very worthwhile paying RMxxx for his tuition fees. Thank you sifu.”

[Posted by coolio > Oct 22, 2015 11:58 AM | Report Abuse

I just want to take this opportunity to say thank you again because recently I have achieved 7 figure in my investing journey...hehehe.. Thanks for your investing methods, no 8 wonders in the world is really amazing!]

Happy investing.

K C Chong