kcchongnz blog
When everyone is making (big) money, and you don’t: kcchongnz
“Mr Chong,
Recently, there are so many stocks with their share prices going up like rockets but I don’t own a single one of them. Many people are bragging about their prowess in investing, earning millions. Someone even tells me straight to my face that I am a low-class investor, for not buying certain share which has gone up a lot in price recently. How would you feel if you were in my position?”
Dear course participant,
Please recall when you first join my course and started to invest in the stock market. What was your goal in investing? Wasn’t it to build long-term wealth slowly, safely and surely following some proven principles and methodologies in investing?
Five months ago, on 2nd November 2016, I have sent to you a watch list of carefully selected 15 Magic Formula stocks for your to consider for investment for long term.
The portfolio of 15 stocks returns an average of 15.6% during the last five months, including all dividends. The median return is quite similar at 15.1%. This total return is more than 3 times the return of the KLCI of 4.8%, as well as the broader FBM Emas Index of 5.8% during the same period.
Over the last 5 months, I have also progressively given you a total of seven stocks, with detail fundamental analysis, valuations and comprehensive reports, to consider investing in. As on today, those stocks had an average return of 14.5%, more than double the return of the broad KLCI during the same period. Note the stocks were given and returns were progressively over a duration of 5 months, whereas the return of KLCI is from 5 months ago to 31st March 2017.
Hence you would have done pretty well too in your investment if you have invested in the portfolios of stocks in almost any combinations of them. I have shown you that all the stocks made positive returns, and most of them are of double digit returns.
More importantly, by investing in those good companies when they were selling cheap, the very essence of the Magic Formula Investing, entails very little risk and you could sleep well. That is what I have always try to instill into your mind all this while, haven’t I?
So, why envy others? Why should you regret? Have you forgotten what were your goals and expectation when you first invest?
In investing, envy of other’s great success and feel regret is a dangerous thing.
Remember that when someone talks about his investments, he rarely tells you about his losers.
“I made 300%, 500% with L. You are a poor investor as you did not invest in it”.
The above statement is glorifying. However, what is often left out is that they may have lost more in some other stocks; 50%, 70%, or even 90%. It is humiliating to admit that. Who would respect you anymore?
Hence, do what works for you and be happy with where you are. Remember what I have thought you the fundamental way to build long-term wealth, slowly but surely. I emphasize that again and again. Everything else is secondary and only leads to making emotional decisions built around greed and lust which have disastrous long-term implications.
Greed
Most investors want to dabble in the stock market and buy the latest hot stocks like KNM in 2007 when it was damn hot and selling at RM10 a piece, Hibiscus when it was trading at RM2.70 three years nine months ago, MPCorp when it was trading at more than RM10 many years ago, Asia Media when it shares price was more than ten times its price now 5 years ago etc. Look what happen to their share prices now.
http://klse.i3investor.com/blogs/kcchongnz/45373.jsp
Most of them had lost more than 90%. These were the hot stocks which greedy speculators were chasing in those times.
When speculators are making big money, they want to make more, much more, and in shorter time. They attend seminars organized by investment banks, “super-investor” to get hot tips. They are continuously bombarded with stories on how they had made use of other people’s money (OPM), at such a low cost, and made killings in some stocks. Those seminars are often lined up with pretty girls handling out forms to participants for margin financing. Yes, why not? Making money is so easy. why not make use of OPM and make much more, and in shorter time?
What is the problem with that? Yes, there are problems, big problems of propagating this to the naïve and uninformed public, enticing them to be greedy.
http://klse.i3investor.com/blogs/kcchongnz/92114.jsp
http://klse.i3investor.com/blogs/kcchongnz/82699.jsp
http://klse.i3investor.com/blogs/kcchongnz/79429.jsp
“The share has gone up 500%. It will continue to go up as long as the next quarter result is better. To be a super investor, you must buy more. You must “sailang”. Don’t worry about the price. Just buy”
Envy can also easily lead one to lust. Lusting, and “chasing performance” is a guaranteed recipe for disaster as an investor. For most of the time, the share price has already incorporated all information, and likely that the bulk of that cyclical gains in share price are already well exceeded its value.
Just look at the share price movement of Latitude Tree in Figure 1 below. The stock was chased up from RM6.00 to RM8.00 in a matter of a month. Most individual investors who lust for it would have bought at around RM8.00, before the share price plunged to a low of RM4.50, in just a few months when the buying stopped and selling for profit taking took place.
Strangely, when it is really cheap at RM4.50, few want to invest. Most like to follow the principle of “buy high, and (hope to) sell higher.
Figure 1
“Lusting” after past performance leads to “buying high” which ultimately leads to poor outcome in investing. This has been proven again and again in many stocks in Bursa, not only Latitude Tree alone.
Remember, trees don’t grow to sky.
Do not let envy creeps into you and makes you do all kind of silly things. Focus on your original goal, to build long-term wealth safely but surely. Make full use what you have learned in fundamental investing. Do not follow blindly from anybody. Do not chase hot stocks. Do not follow rumours, hypes and fads.
When everyone is making (big) money and you don’t, it is perfectly okay.
That is one of the “Golden rules” of success in investing.
Take care.
KC (ckc13invest@gmail.com)
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Discussions
27 people like this. Showing 50 of 164 comments
2018 is too late already
Now Dow Jones is 21,000
By 2018 it would be 30,000
2017-04-04 20:36
there is no way I can see that KC has a better grasp of the stock market than KYY.
no way.
Playing share market KC way is almost same as fixed deposits.
if lucky makes 10%.
2017-04-04 20:42
If all you think about while paying stock market is margin of safety. ,
The first 5% you sell already.....No way you can be successful.
2017-04-04 20:49
KYY way is completely different.
He will buy and buy as long it keeps going up
As long as it keeps going up, the current market price is always higher than the average cost.
Fear is not in the dictionary. Only thing that matters is stock picking.
2017-04-04 20:53
Posted by stockmanmy > Apr 4, 2017 08:53 PM | Report Abuse
KYY way is completely different.
He will buy and buy as long it keeps going up
As long as it keeps going up, the current market price is always higher than the average cost.
Fear is not in the dictionary. Only thing that matters is stock picking.
Sadly it didnt happen in Xinquan
N he also cut loss on Canone lately
2017-04-04 20:57
Or else u think PLPman can get tips to buy JAKS at RM1.30...must have his own talent
2017-04-04 20:58
Its yin yang
But , at least there is a mechanism, a method, a way , a chance to be successful. The rest is up to him.
KC way....there is no mechanism, therefore no chance to be successful....no chance to own 30% of Jaks before turning 70.
Icon8888 > Apr 4, 2017 08:57 PM | Report Abuse
You said like that, KYY will happy until wet loh....
2017-04-04 21:01
One thing I dont understand why he cant makan lunch with China Boss and come out with deals such 10 or 20 free warrantw for every one share held in Xinquan...
2017-04-04 21:01
He probably masturbated many times already based on what I wrote to him.
y Icon8888 > Apr 4, 2017 08:57 PM | Report Abuse
manmy, You said like that, KYY will be happy until wet loh....
2017-04-04 21:02
U really PLP King....he may not even remember when was the last time he did it.....30 or 40 years ago?
2017-04-04 21:03
I bought Koon's rubbish (Mudajaya) now coz i knew its IPP finally jalan...
2017-04-04 21:09
wow I hope Koon read this
Posted by stockmanmy > Apr 4, 2017 09:02 PM | Report Abuse
He probably masturbated many times already based on what I wrote to him.
y Icon8888 > Apr 4, 2017 08:57 PM | Report Abuse
manmy, You said like that, KYY will be happy until wet loh....
2017-04-04 21:15
who cares what Charles the little man thinks?
money in bank is the only thing that matters.
2017-04-04 21:17
wife will be angry...no more curry puff!
Posted by stockmanmy > Apr 4, 2017 09:02 PM | Report Abuse
He probably masturbated many times already based on what I wrote to him.
y Icon8888 > Apr 4, 2017 08:57 PM | Report Abuse
manmy, You said like that, KYY will be happy until wet loh....
2017-04-04 21:17
Suddenly discussion here brings in kyy as well. His had created wave everywhere
2017-04-04 21:20
Kc system consider a much better one, with good sustainability compare with KYY
2017-04-04 21:20
For those who dont know, unclez started recommended jaks in dec 2015. I am one of the many lucky persons who received his report on jaks.for a mere usd10 contribution to his grandson, i have made few hundreds times in value
2017-04-04 21:24
riader
KYY is 85......in the market for decades/
if that is not sustainability, what is?
25 years old chicken like you?
2017-04-04 21:25
its also called sharing experiences.
Icon8888 > Apr 4, 2017 09:15 PM | Report Abuse
wow I hope Koon read this
2017-04-04 21:46
agree with kcchong, beside fundamental and technical. finally his mentality is the main factor to drive himself to discipline or misbehaving.
2017-04-04 22:08
U must understand KYY is a businessman....his monies are make come from selling...Gamuda, Mudajaya and IJM shares as a businessman b4 he retire mah.....!!
KYY is never a good share investors like he now claimed loh....look at his disaster investment into Xinguan, Msports and Jtiasa u will understand loh.....!!
If people look for investment guidance better look for KC....try to avoid conman KYY loh....!!
He is never a good investor loh....!!
Kyy...can promote himself as a superinvestor loh....but don get conned loh.....his track record prove otherwise loh....!!
BTW last year stock pick contest....KYY ended almost last loh...!!
2017-04-04 22:22
rule 1 for Bao...stick to FD.
Bao Jie > Apr 4, 2017 10:25 PM | Report Abuse
Rule 1 . Dont lose money
Rule 2. Dont forget Rule 1
2017-04-04 22:27
what I gather is people is very good in repeating what they read in books.
much like a primary school kid.
2017-04-04 22:28
Based on raider's explaination....finally u can understand why KYY need to be a parasite.....feeding on naive....uncle & aunties....despite the consequence bad karma.....for kyy conning action loh....!!
KYY cannot help it loh.....other than to cheat loh.....bcos he is really a lousy investor loh....!!
2017-04-04 22:28
KYY do not need aunties and uncles to support share price......their total power is meaningless.
2017-04-04 22:29
Btw...u can...make 100% on jaks....by keep on buying jaks loh....!!
Once....the buying stop....u r a dead duck loh....!!
KYY....it holding loads & loads of Jaks hoping to unload to those who follow him buy mah.....!!
But....it is not easy loh.....to unload this poor fundamental & overvalue stock to the public....hoping there are many fools around loh.....!!
2017-04-04 22:33
to unload?
who is talking about unloading?
I don't think it is possible to unload > 100 million shares in the open market.
=====================
But....it is not easy loh.....to unload
2017-04-04 23:51
haha... if Stockraider and CharlesT are habitual liars, stockmanmy is a habitual PLP fellow. But he is a very professional and consistent PLP master as he only PLP one old guy (perhaps trying to win that old man's trust to empower him to be one of his remisiers?)... haha
2017-04-05 12:31
what KC wrote here is absolutely right... I am thinking exactly the same.
my salutes to sifu KC Chong! (I do not need to PLP KC Chong to get any tips though, haha)
2017-04-05 12:33
How did we lie?
We bought certain co at low prices and then come out to promote 99 when prices are higher and then quietly sell all to u all?
2017-04-05 12:34
haha... that is exactly what the "super investor" is doing.. there will be a "free talk" later in Ipoh for "sharing investment tips and helping the poor to create wealth".. haha
like CharlesT said, must go ya.. if they serve Wadyu beef...
2017-04-05 12:51
feels so good :D
stockmanmy As of now...every 10 sen increase of Jaks is $ 13 million profit.
04/04/2017 20:54
2017-04-05 23:33
To stockmanmy:
Do you know what is actually disgusting?
Look into a mirror and you will find out (what Icon mentioned below sounds perfectly right! I can't word it any better)
1) jealousy of others when doing better than you, twisting truths to achieve your personal objective
2)zero sum game attitude (attack OTB non stop so as to displace him)
3) willing to totally surrender own respect in order to gain favor of the rich, disregard for right or wrong (Koon is always right)
4) always want to win, and treat people around you with disrespect (cannot imagine what you will become if you one day get rich)
2017-04-06 13:08
i am also curious if that old man will hire sexy girls at his "free" talk to attract the public to join (besides the free Wadyu).. haha
2017-04-06 13:10
or hire more PLP fellows (just like one amongst us here) to overly promote him to lure more "water fish" to join his "pump & dump" bandwagons.
2017-04-06 13:11
I am not a member of kcchongnz's course. But this is genuinely good advice. This article allows investors & speculators to think again before making any moves in the stock market. Many bits of investment nuggets can be extracted from this seemingly short & simple article, eg. don't chase hot stocks blindly, stick to your pre-determined strategies, buy low & sell high, etc. "If I've seen a little farther than other men, it's by standing on the shoulders of giants" Well, I may not see further than the pros, but I can certainly follow their footpaths to see things not seen by others.
2017-07-27 00:40
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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....
abangadik
ermmm if ten years not buy 2018 meh kekekeke..
2017-04-04 20:34