In my last article in i3investor, I discussed about how I used a value investing strategy of dividend yield and invested in a portfolio of 5 high dividend yield stocks as in the link below,
I got another comment from my regular critic as below,
Value investors did not do well this year.
kc also no business.
I hope things will change for the better for him.
in the meantime, I stick to X factor.]
Thank you again, no criticism no fun. And thanks for your “hope that things will change for the better for him”, but no thanks for your “hope”. As you know, I do not depend on hope to do well in investing. For your information, I have written many articles in i3investor and provided with ample evidences that basing on value investing which I have been propagating, I have been doing very well in the long-term, as well as the short-term.
Let’s just put aside what he means by his frequent uttering of “X factor”, whatever it means. It makes me “one head full of dew water”. We don’t need to get stressed on what he means.
But what makes him think that “Value investors did not do well this year”? Is he using value investing, that he has been doing badly this year?
If you read my article above, with a portfolio of 5 Bursa dividend stocks selected and published at the end of 2015 for investing in 2016 and beyond, with detail analysis published in i3investor, based solely on the principles of value investing, gained an average of 67.4%, with approximately the same median return, for the last one-and-a-half-year period as on 30th April 2017 as summarized in link below,
The broad market returned just 3.8% during the same period.
One year short-term return of value investing in Bursa
Exactly one year ago, I started a stock pick service in Bursa for my past course participants. This was discussed in i3investor in the link below,
As all stocks were picked due to their stable earnings and cash flows, and healthy balance sheets and good dividend yields, and picked when they were generally selling at cheap or reasonable prices, the very essence of value investing, the risk involved is naturally very low.
The portfolio of 14 stocks selected progressively over the year made an average return of 16.9% compared to the gain of 3.0% of the broad KLCI index, and the gain of 5.9% of the broader FBMEMAS Index during the same period. The excess return of the portfolio is hence a whopping +13.9%.
The earlier participants of this service who invested in Bursa made an average return of 30% over the past one year as on 30th April 2017, compared to the gain of the market of 3% during the same one year period. The excess return, or alpha, is 27%. The highest return was closed to 40%.
Nine months’ return investing in SGX and HKSE as on 30th April 2017
We also started a foreign stock pick service in SGX and HKSE about nine months ago, again using our value investing strategy which we have discussed in this link below,
The reasons we did that was to assist my course participants to diversify investment regionally, plus at that time, the SGX and HKSE was at much lower valuations than KLSE. The intention was to obtain satisfactory results over a long-term period, and not chasing fast gain over the short period.
For the last nine months since 27th August 2016, a total of 8 stocks were selected progressively by our “Chief Investment Officer” who had been my value investing course participant, and practice his value investing strategies to pick stocks. We also have a couple more past participants of my value investing course contributing to the service.
After 9 months have passed as on 30th April 2017, the average return of the portfolio of 8 stocks selected progressively returned 34.0% in nine months, with a substantial higher median return of 52%. These returns out-performed the 10.4% and 7.4% of the broad index of SGX and HKSE respectively during the same period by miles ahead.
There were a few high return stocks; Sungningdale at +63.5% in 8 months, Avitech +76.4% in 7 months, Fischer Tech at +69% in 3 months, and Valuetronics +52.3% in 6 months.
Most interestingly, there is not a single loser in the stocks selected. This fit very well in our principle of,
“Take care of the downside; the upside will take care of itself”
This return on investing in the stocks above has not taken into consideration gain in foreign exchange over the period.
A few participants early in this service made 40% to 60% total return in the nine months’ period, beating the return of the broad market of 8.9% by a wide margin. The later participants also made more than 20% in less than 6 months.
Thanks to the Chief analyst cum Investment Officer of this service, a fervent follower of value investing.
So how can you say, “Value investors did not do well this year.” What evidence do you have?
I have written many articles in i3investor using value investing strategy, until many people already fed up of reading them. Sien Ahh!
But why should one feel “sien” about value investing?
I have shown value investing works very well in the long-term with my latest article here,
I have also just shown you value investing also works extremely well in the short-term in this article.
Apa lagi lu mau?
To me, value investing is not "sien", but very interesting indeed. I never feel sien in propagating value investing, although at times it can be a little frustrating.
Value investing is, either you get it, or don't get it at all.
If you are convinced about the usefulness of value investing, which I have shown you again and again that it works and works very well, and wish to learn about value investing to make extra-ordinary return for the long term in more predictable way, or if you wish to get some help to invest in Bursa right now while learning, please contact me at,
K C Chong
Created by kcchongnz | Oct 02, 2022
Created by kcchongnz | Jul 20, 2022
Created by kcchongnz | Jun 05, 2022
Created by kcchongnz | May 24, 2022
Created by kcchongnz | May 07, 2022
Created by kcchongnz | Apr 30, 2022
Created by kcchongnz | Aug 13, 2020