In my latest article, “Return of Value Investing: My established records Part 1” in the link below,

https://klse.i3investor.com/blogs/kcchongnz/176865.jsp

Someone posted this comment,

[Posted by qqq3 > Oct 9, 2018 03:55 PM | Report Abuse

kc
jokes aside.....your methodology don't work, have not for at least a year.......one day, it may work again.....]

Like I have said, if life, nothing works all the time. It is the same as in investing. In investing, as long as the strategy is plausible, and it works more often than not, and when it works, we gain a lot, but when it doesn’t work, our loss is little, then we will be doing very well over the long term.

In my recent article, “Does “value investing” work and what are the evidences?” in the link below,

https://klse.i3investor.com/blogs/kcchongnz/174215.jsp

I have shown the exemplified returns of nine disciples of Benjamin Graham who had used different ways of value investing and generated annual compounded returns (CAGR) of between 18% and 29% over track records lasting between 14 to 30 years, 2 times to more than 4 times the CAGR of the broad markets over the same period.

In my subsequent article using stocks in Bursa, “Does “value investing” work in Bursa?” in the link below,

https://klse.i3investor.com/blogs/kcchongnz/175060.jsp

I have also shown some big cap stocks chosen randomly returned an average of 379% over the last 10 years, or a CAGR of 16.5%, more than 3 times the 5.2% of the broad index during the same period.

The other evidence I provided was the compilation of 20 small cap “bull” stocks listed in Bursa by the Chinese investment periodical, Busy Weekly, which returned over 1000% over the 10 years, or a CAGR of more than 30%.

Furthermore, In my latest article, “Return of Value Investing: My established records Part 1” in this link,

https://klse.i3investor.com/blogs/kcchongnz/176865.jsp

I summarized the returns of four portfolios which I shared in i3investor from more than 5 years ago, using the principles and various methodologies of value investing.

I have shown that the portfolio of 10 stocks named “GE13 Watch” established in i3investor on 21^st January 2013 returned 146%, more than seven times the return of the broad market of just 20% in the same period of about 5 years till the end of year 2017, with all stocks in the portfolio making positive returns.

My second portfolio of 11 stocks named “2013 2H Stock Pick Challenge” established in i3investor on 1^st August 2013 returned 175% in about four years as end of July 2017, against the return of the broad market of just 10% during the same period.

My third established portfolio in i3investor was done at the end of year 2015 for investing for year 2016, using the high dividend yield investing strategy. This portfolio of 5 high dividend stocks has gained an average of 67.4% for the one-and-a-half-year period as on 5^th April 2017, compared to the gain of the broad market of just 3.8% during the same period.

My last established record in i3investor was in the stock pick challenge for 2017. I did not do that well in this portfolio of stock, but it is still a positive return of 5% at the end of the year, underperformed the broad market.

Overall the portfolios of stocks did very well and fulfilled the very gaols and objectives of value investing,

Besides these 4 portfolios of stocks, there were also many individual stocks I had shared in i3investor over those years, and most of them had done very well too. Of course, some, but few in comparison did not do well too.

I would say I have done enough goodwill in i3investor by sharing my portfolios of stocks. I had spent a lot of time and effort carrying out detail analysis and valuations, and shared in investor too. I am glad many readers appreciated my work, and some of them joined my online value investing course. There were also many criticisms and mockeries too, some even went personal attack, especially on those few stocks I shared which did not do well. That is part of the hazards in the internet space.

After that, I have decided not to share any particular stocks in i3investor anymore, but continuously sharing my thoughts on the principles and methodologies of value investing with the aim of educating the newbies on value investing, and avoid the pitfalls in investing in the stock market. Instead I started stock pick service for my course participants who have attended my course and understand my philosophies, but have no time, or have not acquired the knowledge, experience and confidence in investing due to their busy work schedule.

Returns of my stock pick service

In April 2016, a first stock pick cum practical investing service for Bursa was offered by me to my past online investment course participants when I was in Melbourne. That was the most memorable one.

After one and a half year when the service concluded, the portfolio of 14 stocks returned an average 39.3% as on 11^th November 2017, against the gain of the broad market of KLCI of just 4.5% during the same period, for a whopping excess return of 35%. The SmallCap Index returned about 15% during the same period.

My second similar stock pick service started slightly less than 2 years ago. It was concluded one year later in November 2017 with a commendable average and median portfolio return of 24% and 40% respectively, three times the gain of 8.9% of the broad FBMKLCI index. The SmallCap Index returned about 13% during the same period.

My third stock pick service started about 16 months ago and it was concluded at the end of August 2018. Unfortunately, the service went through a period of steep corrections due to the trade war, problems with the export stocks on increase in costs of labour and materials, the strengthening of Ringgit, the fallout of the local equity market, especially for the construction and SmallCap stocks after GE14 etc. The portfolio of stocks lost 5.0% compared to the gain of the broad KLCI of +2.3% during the same period.

However, compared to the more relevant tracking benchmark of FBM Small cap Index which the portfolio of stocks was mostly made up of, the loss of the portfolio is way below the loss of 16.5% of FBM Small Cap Index during the same period.

My fourth stock pick service started at the end of last year and it has again gone through the difficult time and it is still ongoing. Despite of that, as at end of September 2018, the portfolio of 6 stocks selected using the value investing strategy still made a small gain of 1.9%, compared to the gain of 0.9% of FBMKLSE. Compared with the small cap index of which most of the stocks in the portfolio are made up of, it is an overwhelming overperformance again with an excess return of 16.8% as the FBM Small Cap Index has lost 14.9% over the same period.

Conclusions

Again, my experience in value investing has shown that it works very well, both in the short-term as well as the long term. However, I do admit that past performance may not be reflected in the future, especially in the short-term. I would be happy if it works for the long term alone.

And also, I am not saying only value investing works, or only my method works, but it works for me.

Why do people continue to ridicule FVI despite all the evidences that it has worked, it is still working, and that it is continuing to work?

I like to borrow what a “quilow”, Seth Klarmen said below,

You know there are really many famous and proven very successful “quilow” value investors in US. In contrast, there are few in Malaysia. The only one who is active and worth mention now in Malaysia is Coldeye, but his writing is in Chinese. There may be a few more good ones, some young ones, but they are not yet established. That is why I like to use established “quilow” value investors as guidance.

Again, if you are interested in acquiring the knowledge of value investing, or if you have no time but still wish to invest in Bursa safely, slowly but surely to build long-term wealth, you may also participate in my new stock pick service by contacting me at,

ckc14invest@gmail.com

KC Chong