In Life We Need To Learn From Experts to short cut our learning

curve. How glad was I to have met 2 Great Sifus in the State of

Johor, Malaysia. One Expert Sifu is in Share Investments. And one

Sifu is the Champion Landlord of Kota Masai in Eastern Iskandar.

Here are the Top 10 Valuable Lessons My Johor Share Investment

Sifu Taught Me

A THIRST FOR INVESTMENT KNOWLEDGE

When Mr. L Tan was an accounting student in University Malaya he

used to read the WeekEnd Malay Mail. Here Dr Neoh Soon Kean of

Dynaquest would give a weekly write up highlighting One or Two Stocks

of Bursa. L. Tan carefully cut out the precious investment articles by Dr

Neoh – then read and reread them carefully. This was how he got all

the solid investment lessons of life. He also subscribed to the excellent

Monthly Digest of Dynaquest (Now discontinued). From here he got

such great tips like PIE & AJIYA which made him millions!

2.  BUY BUSINESSES THAT YOU USE

When his relative was warded in KPJ Hospital he saw the high medical

fees, the long waiting lists. So he bought into KPJ .KPJ was a great

growth story. From KPJ came Alaqar Reit – another great recession

stock that emerged well all through the Lehman Brothers’ Crisis.

When his family members bought and used trolley loads of Premier

Tissue & Cutie Toilet papers he started to buy NTPM at 50 cents. He

later told me he made enough monies to buy tissues for his family for

their entire life time.

3. SCUTTLEBUT

Ha! This was what he did by visiting companies or watching their

businesses. So in year 2006 he told me to go and SEE Angsana

Shopping Complex in Skudai Johor.

A visit to ANGSANA Showed 4 companies. On the ground floor is KFC

& Pizza Hut, On second level is Kamdar selling clothes and fabrics. And

on the highest floor is the clothing store called Yong Tai.

Every weekend KFC & PIZZA HUT Were Doing Roaring Business. One

idea L. Tan had was this. In Malaysia the majority race is Muslim and

they are forbidden to eat pork. So KFC should do very well.

So we loaded up on KFC & QSR. I like QSR more because QSR has

both KFC & PIZZA HUT. As it turned out JCORP Later took both

private.

4. HAMMER IT!!!

Hammer It? What is this? Ha! According to my Johor Sifu, if you have

found a really good stock, you should not just nibble a little but

HAMMER IT! That means, don’t just buy a little BUT BUY A LOT OF IT.

That’s how we both bought into KPS at 50 cents. And when KPS

dropped to 39 cents we loaded up even more. KPS later shot up more

than 1,000% to its all time high of Rm3.94

HAMMER IT? I bought and bought Pm Corp until I was in the Top 30

Major Share Holders. So is My Johor Sifu. He was in 30 Top

Shareholders in quite a good number of Stocks.

4. RECEIVABLES IS NOT CASH

This was when I bought into Megan Media at around 67.5  cents. From

the Balance Sheet Megan Media showed a P/E of only 3. NTA at over

Rm2.00. It also pay a small dividend.

So many have been tricked by the “blue ray” disc hype touted by

Megan Media Bosses. However, My Johor Sifu stood his ground &

rejected buying into this popular stock which so many others bought.

Why? He questioned the High Amount of RECEIVABLES In Megan

Media’s Accounts. RECEIVABLE IS NOT CASH. What is CASH Then?

According to my Johor SIFU The Smart Accountant, “CASH IS ONLY

CASH IF THE CASH IS RECEIVED AND DEPOSITED SAFELY IN

THE BANK”.

Being not sure I still held on to my Megan Media shares and watched it

carefully.  Then one day to my surprise, I saw Insider selling 3 million

Megan Media shares! And then they unloaded another 5 million shares!

Insiders are bailing out!! The pilots are parachuting!!

Straight away I called my Remisier to sell off every Media Megan

shares at 66 cents for a small loss. Next day to my chagrin Megan

Media even rose to touch 70 cents. If only I had sold one day later?

Then I would have made some profit? Why the hurry? Weeks passed.

Then one day the horrendous result came out. Megan Media went limit

down!

It plummeted to just over 30 cents. One Mr Teh thought it was bargain

time & loaded up. Loading up falling knives? Megan Media went

bankrupt and got delisted. It was found out later that all the Blue Ray

Disc Factories were non existent. RECEIVABLES WERE ALL FAKE OR

FICTITIOUS.

5) RIDING ON COMPANY SHARE BUY BACKS & INSIDER BUYS

When he saw MAMEE issuing Warrants he loaded up. Company  Share

Buy Backs on  MAMEE helped to push up the Warrants. So he loaded

up more Mamee warrants. It was really effortless. Riding Mamee

Warrants when Company bought up Mamee shares and took it private

later.

Same goes for PTaras Jaya. PTaras was into piling work for foundation.

In high rise construction the first job is piling and so Ptaras Jaya will get

paid first. How did he know? My Johor Sifu’s Brothers were Big Time

Developers. Another thing is – PTaras Profit Margin is substantial. So

he told me to buy PTaras Jaya at Rm1.40. Another reason is this. While

exercising ESOS PTaras Jaya Top Boss also bought PTaras shares

from open market at Rm1.90. So buying PTaras at Rm1.40 would be a

bargain. As it turned out later PTaras went up 500% & split.

6. BEWARE OF SHARKS IN BURSA

Ha! This was new to me as My Sifu explained. Companies would set up

con job from time to time. All fools and suckers will be conned if they

are careless.

It’s like this. This is the modus operandi of Big Sharks & Syndicates

First go to the Middle East (this was popular then). Then set up Joint

Ventures with Names of Some Unknown Foreign Entities with Important

High Sounding  Names. Get it staged with lots of noise and publicity.

Get (bribe?)  the media to take pictures. Splash them out as Headlines

in Malaysia.

Get analysts (more bribes?)  to write glowing prospects of how much

projected profits they will make.

Get stockists & remisiers to churn the stocks as if trading spikes up.

With this hooha, hype, fanfare and barrage of seemingly good news

day after day before the gullible naive dumb gambling and speculating

crowd – many are finally drawn and sucked  into the trap.

At peak prices syndicates will unload & support the shares

intermittenly.  And after they have unloaded all to suckers the shares

will go down. Some even collapse in limit downs.

7. INVEST – Don’t Trade Too Much

He showed me Warren Buffet’s style which he liked. Make a Few Good

Solid Investments & Keep Longer Term. Don’t hit and run all the time.

This will prevent erosion of performance by excessive and unnecessary

fees. Compounding interest is the eight wonder in the world.

He bought Ajiya at Rm1.00 & sold Ajiya above Rm4.00. With 400,000

lots he made Rm1.5 millions. His Sifu Dr Neoh has 600,000 Ajiya

shares & made more than him

8. WHY VALUE INVESTORS WITH MONEY SHOULD DO VERY

WELL IN MALAYSIA

In Malaysia lots of Company Bosses Have Money But Don’t Know How

To Invest. Many Accountants Have Knowledge But Got No Extra Money

for Investment in Shares. You see, after deducting Car loan & housing

loan the average Accountant has little monies left for Investment.

So The Chinaman Boss Has Money But Don’t Know About Share

Investment. His Accountant on the other hand has the knowldege but

no money to invest. And he has no incentive to teach his Boss how to

invest. So most Chinaman Bosses will get their tips from hearsay or the

media. This is where 70% of the people get conned.

So for the few Value Investors like my Johor Sifu the KLSE is a Great

Place to find Great Value Buys.

9. CONCEAL KNOWLEDGE

Once I was in the Stock Market with my Johor Sifu. I saw one guy

buying Sapura shares instead of SapuraTech to his ignorant.

Sapura is taking SapuraTech Private with extra Rm40 a shares.

The irony is this  – both Sapura & Sapuratech are trading at 80 cents a

share.

By buying SapuraTech you get one share of Sapura with 4 extra cent

Like this

One Sapuratech = One Sapura & 4 cents

So buy Saparutech instead of Sapura – you dummy!!

I wanted to warn the dumb guy but My Johor Sifu restrained me

“Don’t tell him. No point. He might not understand your good intention &

might even give you a good scolding.” my Johor Sifu warned me. So let

it be.

10. No POINT Talking To People Even In i3 Investors’ Forum

For this same reason my Johor Sifu – his ID is MG9231 seldom post in i3 Forum.

This is a Big Loss to all new investors who will be losing monies like the

80% who are destined to lose their monies in the share market.

Well I am more thick skinned & I did post & post. And now I found out

by real experience. 80% of the people are not interested in long term

value investing at all. Hot stock and hot tip of the day is all that matters.

It has been, is now & will be for forever.

Since we cannot change human behavoiur just leave them to their

devises.

Now I must learn from my Johor Sifu & relax.

WHAT A WONDERFUL LIFE

 

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FOLLOW BUY OR SELL WHAT STOCKS MENTIONED ABOVE

THIS POST IS TO STUDY TOP 10 INVESTMENT IDEAS

FOR NOW CALVIN is 95% INTO PALM OIL COUNTERS AS CPO ALL

TIME HIGH NEAR RM4,000