Koon Yew Yin's Blog
The Most Essential Lesson for all Investors - Koon Yew Yin
Koon Yew Yin
Publish date: Sat, 21 Nov 2015, 11:02 AM
Koon Yew Yin
0 1,415
An official blog in i3investor to publish sharing by Mr. Koon Yew Yin.
All materials published here are prepared by Mr. Koon Yew Yin
All materials published here are prepared by Mr. Koon Yew Yin
Many of my close friends and my family members want to know how I dare to buy so much of VS Industry shares. As I have announced on 15th June 2015, I have 20,445,600 shares, nearly 10% of the total issued shares before one share is split into 5 shares. I am also a substantial shareholder of Latitude and Lii Hen. The price charts show that every one of the 3 shares has gone up a few hundred per cent per year.
A super investor must have the following 7 traits or characteristic features:
Trait 1. Be a contrarian investor, the ability to go against the crowd in investing. You must not be afraid to buy when most people want to sell and sell when most people want to buy as if tomorrow is too late to sell.
Trait 2. A great investor is one who is obsessive about playing the game and wanting to win. These people do not just enjoy investing; they live it. They wake up in the morning and the first thing they think about, while they are still half asleep, is a stock they have been researching, or one of the stocks they are thinking about selling, or what the greatest risk to their portfolio is and how they are going to neutralize that risk.
Trait 3. A good investor is the willingness to learn from past mistakes or to admit that he or she has bought the wrong share. It is so hard for people to recognize their own mistakes and sell the bad share which they bought at a higher price. Most people would much rather just move on and ignore the dumb things they have done in the past. But if you ignore mistakes without fully analyzing them, you will undoubtedly make a similar mistake later in your career. In fact, even if you do analyze them it is not easy to avoid repeating the same mistakes.
Trait 4. A good investor must have an inherent sense of risk based on common sense. You must have the common sense to realize the risk of buying any share which has gone up a lot and when all the analysts are recommending buy. No share can go up indefinitely for whatever reason. Quite often you might be tempted to fall in love with your purchase because it has been going up and up. You are so proud of your pick and refuse to sell it. Remember your ego can skew your judgment.
Trait 5: Great investors have confidence in their own convictions and stick with them, even when facing criticism. Buffett never get into the dot-com mania and he was being criticized publicly for ignoring technology stocks. Eventually he was proven right. Unlike Buffet, we small investors can get in and out quickly and make some profit.
Besides confidence, you must have patience to wait to buy when it is has established a base and not buy when it has shot up due to some exciting hot news.
Trait 6. It is the ability to think clearly. Our brain has 3 basic functions. One is to circulate your blood and control your breathing. The second is your emotion and the third is logical thinking. All normal investors allow their emotion to control their logical thinking process. All successful investors can think clearly when faced with a problem.
Trait 7. Finally the most important, and rarest, trait of all is the ability to live through price volatility and fluctuation without changing your logical thinking process. This is almost impossible for most people to do when the share goes through a price correction. A swing up or down over a relatively short time period is not a loss and therefore not risk, unless you are prone to panicking at the bottom and locking in the loss. But most people just cannot see it that way; their brains would not let them. Their panic instinct steps in and shuts down the normal brain function.
Most investors believe that no share can continuously go up or come down indefinitely for whatever reason. They will sell to take profit and buy back during price correction. But quite often, the correction is mild especially if the share has fantastic profit growth prospect. They would not buy back at a price higher than the price they sold.
As you know VS Industry share price went up from Rm 2.5 to above Rm 8 in the last 15 months. I know of a foreign professional investor who sold VS at about Rm 4.50 because his chart indicated an unavoidable price correction. When the price continued to climb, he did not buy back because he has not mastered the above 7 traits.
If you want to improve your technic in investing you have to look at the 7 traits frequently until you have mastered them. You have to absolve them into your brain so that you can react automatically like a reflect action.
Basing on the last few quarterly earnings, I believe the company of VS Industry will be able to make more profit this year than last year which complies with my golden rule for selecting shares. But I am obliged to tell you that I am a substantial shareholder of VS. If you decide to buy, you are doing it at your own risk.
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Discussions
12 people like this. Showing 50 of 52 comments
Now, how to unload shares in hand to others at a right price after gaining so much.
2015-11-21 14:32
KCChongnz for pointing out that VS is overvalue by 35%. To newbies, please read KCChongnz latest tread. Don't believe old fox trying to trap you when he sell like Latitud. http://klse.i3investor.com/blogs/kcchongnz/86545.jsp
2015-11-21 15:24
Mr.Koon, when latitud will unlock it fair value? do u still have faith in it?
2015-11-21 15:27
Just buy but remember to sell the moment he says sell. But if he did not tell you to sell or any mention of it, then you decide for yourself. Simple game
2015-11-21 16:59
The blog is talking about characteristics of KYY alike investor but the comment seem only concern about ok to buy now, when to sell kind of questions.. sigh....
2015-11-21 18:01
Trait 1: Is there more eager buyer now than ever? Easy answer.
Trait 6: After the price has runup 100-200%, not many people can think clearly, they will explain to you why the price gone up and why it will continue, but they can't explain when price exceed value because they can't even tell what is the value of the firm. Only thing most can tell is something like these below:
"PE only xx, below PE 10, my EPS estimate x PE10 = TP xx!!..Cheap!.. Buy!!
2015-11-21 19:12
laugh die.....so naive
Posted by lk059 > Nov 21, 2015 05:31 PM | Report Abuse
Mr koon, I want to tumpang your good fortune n good foresight. Pls tell when to buy n remember to review when to sell.
2015-11-21 22:03
Here is money can't buy
http://eqxiu.com/s/XQf4nbuf?from=singlemessage&isappinstalled=0
2015-11-21 22:33
@calvintan. you like to bull cock talk. but this round i see your good faith in your comment. but i disagree one part of your comment - "Don't itch to be great at the expense of future bankrupt newbies in i3 Forum". This newbies deserve to get burnt if they are looking for quick money. There are many here in i3 forum. We need them to get burnt so that someone could make money. that is the game. I say - serve them right !
2015-11-21 22:54
Yes Kukuman,
I must really give you credit for chasing away the "newman" who led so many astray to holland.
I think you have a good point for newbies to get burnt.
A child looks at fire. He gets curious and fascinated - reached out his finger and got burnt. Ha! A lesson learnt. He will never touch a naked fire again.
So newbies get burnt? They will be wiser next time to go learn from kcchongnz. Or they will swear that stock market is only for gamblers.
So it's ok.
I pity those about to retire soon. Due to chasing high flying hot stocks they might lose their life savings and pension funds. And no way of recovering. I really pity those so foolish ones snared by greed!
2015-11-21 23:14
accept the facts, KYY is better than you in stock market, and many of us here !
2015-11-22 02:21
KYY invest like a business man. He is successful in what he does. He dare take the big risk when he knows the stock can deliver the increasing earnings per share. He concentrates whereas a lot diversify investment.
2015-11-22 02:31
The utmost essential lesson for all
WHEN YOU MAKE MONEY KYY IS GOD, WHEN YOU LOSE KYY IS DEVIL
A wise man sometimes can behave foolish also
2015-11-22 09:17
You called newbie, but you are not newbie.
You said you want to buy KYY stocks but actually you don't
Right?
2015-11-22 09:32
I like KYY because he is willing to share part of his profit with the poor and needy.
I like KYY because he is brave to speak up the wrong doings of the government.
I believe him because he is a successful businessman
I praise him because all the stocks he bought go sky high
I curse him because I am not as wise as him
Ungrateful man.
You may do hundred right but one mistake sends you to hell.
2015-11-22 09:54
My recommendation for next week.
BUY: GADANG
IV : 3.73 ( 3 valuation model average)
LAST PRICE: 1.88
MOS : 49.6%
EPS: 10.10 (2013)
22.32 (2014)
27.16 (2015)
32.36 (2016TTM)
BUY DO NOT HESITATE. 5 SEN DIVIDEND EXPIRING SOON
no disclaimer made because I tell the truth , none other than the truth
I am sincere, nothing to hide.
2015-11-22 10:13
Read Ah Koon, "How to be superinvestor". Must read for hardcore follower like. http://klse.i3investor.com/blogs/koonyewyinblog/40359.jsp
2015-11-22 10:25
correction:
Posted by pisanggoreng > Nov 22, 2015 10:23 AM | Report Abuse X
wise man let money come (to) you,
lay man goes after the money
sit back and relex
enjoy the best music and the beauties.
http://eqxiu.com/s/XQf4nbuf?from=singlemessage&isappinstalled
(click the arrow to see more)
2015-11-22 10:27
Let's go sailang JTiasa
Posted by Koon Yew Yin > Jan 6, 2014 02:58 PM | Report Abuse
I sold all my Ta An, SOP and R Sawit to buy Jaya Tiasa because JT has better profit growth prospect. JT sells more plywood, logs and has much more oil planation than Ta An. R Sawit has less planted oil palm area and it has no plywood and timber business. When I bought SOP about 3 years ago, it was selling around Rm 3 and now it is selling more than Rm 6.
You buy JT at your own risk.
Koon Yew Yin
2015-11-22 10:32
*Recognise risk when you are buying a stock that has risen a lot recently. * Recognise risk when you are holding a stock at high prices , when the said stock has risen and risen a lot over the recent period. ** The worst harm to your portfolio is to panic sell a stock at the market bottom.
2015-11-22 16:18
Thanks Koon Yew Yin. I am always willing to learn from anyone who is willing to share. Thanks for sharing and hope to learn a lot more from you in your future posts.
2015-11-22 16:20
Ah Koon buy we buy
Posted by Koon Yew Yin > August 30, 2015
Unfortunately, CPO price started to fall in June or July 2014 when JT price went up above Rm 2.70. As I said before you must not hesitate to sell when the reason to buy is no longer valid. Of course I sold as quickly as I could.
Posted by Koon Yew Yin > Jul 7, 2014 10:06 AM | Report Abuse
Lohman, I appreciate and understand your comment. My main object in saying that I bought large amount of Jaya Tiasa and Mudajaya is to show my confidence in them, although it may sound like bragging. Can you imagine what the readers will say when the price of these 2 counters come down after I boasted? I will have to find a place to hide.
2015-11-22 16:26
Mr Koon sold JTiasa & Mudajaya between Rm2.60 to Rm2.70 all the way down after Calvin warned him that Shale Oil from North Dakota will hammer palm oil prices.
He sold as fast as he could?
So all must take heed. Sell early and go for the exit before the torrents of selling catch you by surprise!
2015-11-22 18:09
Allow me to add one more trait number eight
The trait to talk lesser:
I found people write the article very often and very long and it is due to they are insecure that is due to they didn't make much money from tee market so they need to focus on it and spend more time to write up
However the people who make a lot of money will soon find thenselve has better plan to do and they write lesser and less often because they need to use the time more efficiently
I notice it when someone used to be very active in 2014 now talk much lesser, it is a coincidence?
2015-11-22 21:20
BearbearDrop It is obvious that Koon Yew Yin is passionate on stock investing. It is very kind of him to share. We are better off from his sharing than from his silence. Thanks KYY.
2015-11-22 22:56
promoting his stocks and ego again, why not promote when you silently accumulate tat time? this is so called noble intentions? Pui!
2015-11-23 09:12
Now For Year 2016
These Neglected Ones has Built in Defense of High NTA with Powerful Potential
1) KPSCB (KaBoom Power Surging Cash Berhad)
2) PPG (Precious, Precious, GOLD)
3) YILAI (Debt free. 39 cents NET CASH)
4) MAHSING (The Singing Horse)
5) WHITEHORSE (This white horse very sturdy)
6) KAMDAR (Better than many Reits)
7) GMutual (Hidden Gem)
8) MULTICO (Top beneficiry of TPP) Prime factories in Pandan. NTA over Rm3.00
9) Mui Bhd (When Divorce Case Over. Can expect 3 times LIMIT UP!)
10) MPHBCAPITAL (This one? Hmmm? No comment yet. Please don't buy first. Ok?)
2015-11-23 11:49
let's be honest, KYY is not going to tell you which shares he intends to go in before he goes in, by doing so he will be competing to buy at a higher price, rather than do a stealth accumulation. in fact nobody in this world, no matter how kind or generous would do that. Name me one.
Likewise, nobody would tell you he's going to sell before he did, otherwise, he be selling at a lower price.
He is just a businessman or normal investor doing the right thing in investment. Don't expect him to do something that is contrary to maximising profit in investment - which is why people invest..to maximise their return on investment
BUT. he is kind enough to TEACH and share with you the right investment mindset which has worked for him, let you know which counter is a good company of which he is a shareholder...and MOST OF ALL, contribute the gains in his investment for charity. Not many do that.
He will give you a fishing rod and teach you to fish, BUT not fish and feed you direct to your mouth lah. ..might as well ask him to directly bank in money to your account.
2015-11-23 11:59
It is no doubt Mr koon write up is useful guidance for newbies and investors,but if the stock recommended is at sky high price, then we have to be more cautious. The share market is unpredictable, high price , share still can break previous high, we must reckon the chances of winning by looking into macro and micro economies of the big environment...
2015-11-23 13:35
he is one of the syndicate head for the stock he recommended (of course he will you to join the boat & support the price) , but he go for value investing, normally Koon go for stock which profit growing, which mean you hardly get burn like penny stock.
But the above 3 stocks he show now, just prove he is smart, but if you go in now, the risk & reward ratio, risk will be very high.
2015-11-23 14:03
Koon, give us few stocks, the price is still FLAT now, but will shoot up in future based on your eagle eyes. Show this, instead of keep telling us VS, LiHeen, Latitude...this is very important to show us before the rise, not after the rise...
2015-11-23 14:05
i know a few friends follow Mr Koon buy Xingquan.....trapped.
i know a few friends follow Mr Koon buy Mudajaya.....trapped.
i know a few friends follow Mr Koon buy Jaya Tiasa.....trapped.
2015-11-23 14:40
What koon says is right.He is telling us how to invest and do a lot of homework.I have gone through the whole cycle and meet him at one of those AGM.Smile
2015-11-24 19:16
I do not disagree with him
Because this world is unfair
Some people bornt smarter some didn't
Some stronger some weak
Some is male some is female
2015-11-24 19:41
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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....
Ken Lim
MR koon would you please give your opinion about the federal reserve hike
2015-11-21 12:48