I spare you all the technicals which you can search yourself and jump straight down to the methodology of how I found my gems.

First, narrow down a total of 1025 stocks in Bursa using Warren Buffet's simple rules:

1. Debt to Equity Ratio < 0.5

2. Current Ratio > 1.5

3. ROE > 10 (Buffet prefers higher, i use lower here since Bursa's ROE is not as high as US)

You then left with only 103 stocks.

Then, proceed to make sure stocks with only QoQ and YoY growth, they must make consistant and continuous profits in the last 4 quarters.

Next, very important to filter out all stocks that does not generate Free Cash Flow (FCF) or very little FCF, I use Price to FCF Ratio < 20 here to improvise, cause Cash Flow is the blood of business.

Notice that I ignore PE so far, because after you have gone throught all the methodology I mentioned above, you will certainly reach low PE anyway, that is why the focus is not PE but everything else mentioned earlier.

Finally, choose only Top 3 stocks (by lowest P/FCF) that comes from 3 different business model.

So, guess which stock do i get eventually?

I will give you the answer when we reaches 20 comments below.

So post your comments here and check back this space for the answer to the 3 gems i found.

Sharing is caring.

Discussions
18 people like this. Showing 50 of 467 comments

xskyriver

Fundamental Trader

Assignment

Compare: VIS vs INARI vs PCHEM

1 day ago
-----------------------------------------

VIS
debt equity ratio = 0.24 (<0.5)
current ratio = 4.15 (>1.5)
ROE = 17% (>10%)
QoQ growth got
Yoy growth got
continuous profit last 4 quarter got
Price to FCF = 6.7 (<20)

2022-04-10 09:03

markgold

Finally qqq you said something that I agree with you : The soul of a company is not the balance sheet, its the people, its business, the organisation, its history, its strategies.

2022-04-10 09:34

Fundamental Trader

Semiconductor buyer watch SOX from NASDAQ closely as it's entering bounce zone right now.

2022-04-11 10:32

qqq3333

Posted by markgold > 1 day ago | Report Abuse

Finally qqq you said
========
its not finally, its all the time

2022-04-12 08:23

Fundamental Trader

7 biggest mistakes people make using this method:

1. want quick profit with small account hence overtrading
2. monitor price too much, want actions, hands itchy, take early profit and kept changing strategy.
3. cut loss based on previously learnt technical analysis methods
4. not adding after price retraced 10% or 20% (depending on volatility)
5. did not stay through the full run up, aka take early profits
6. to be influenced by rumors or macroeconomy
7. emotional, or care too much about analysts reports or market sentiments

That's why i said doing nothing is the most difficult part after learning this method.

2022-04-12 11:34

stockraider

Correctloh If u put money in exxon or shell instead of sapnrg....u cannot get the opportunity to get return of 300% to 600% in about 1 yr woh!

Posted by Fundamental Trader > 20 minutes ago | Report Abuse

7 biggest mistakes people make using this method:

1. want quick profit with small account hence overtrading
2. monitor price too much, want actions, hands itchy, take early profit and kept changing strategy.
3. cut loss based on previously learnt technical analysis methods
4. not adding after price retraced 10% or 20% (depending on volatility)
5. did not stay through the full run up, aka take early profits
6. to be influenced by rumors or macroeconomy
7. emotional, or care too much about analysts reports or market sentiments

2022-04-12 11:55

qqq3333

Post removed.Why?

2022-04-12 13:49

Fundamental Trader

The whole portfolio following this system already up more than 5% conservatively since last quarter season assuming you take profit now, I'm confident it will perform >20% per annum, especially you pick only rising FCF QoQ, which is something crucial if you want perfection, i mention this only now for those who are still following.

2022-04-12 16:42

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

IN 2020, I received a number of whatsapp messages from young investors on their gains in glove stocks. I suspect that all these investors are nursing losses in these stocks today.

2022-04-12 17:27

Fundamental Trader

@3i

you are right about glove if we backtest on quarterly results. Thank you for sharing from experience.

May i ask when & how did you exited glove? technical divergence? insider info?

Would you and if yes, how would you apply this to exiting plantation stocks in future?

2022-04-12 17:46

qqq3333

The answer as with everything about stock market is about thinking

2022-04-13 10:20

qqq3333

Looks like anyone with palm oil stock make money

2022-04-13 11:01

Fundamental Trader

Terry Smith on Warren Buffett and how to find good companies

https://www.youtube.com/watch?v=0tMwLUMz4F0

2022-04-25 09:53

qqq3333

Buffet live in America during a time good for buffet

2022-04-25 10:25

qqq3333

But the last few decades of America is ugly capitalism

2022-04-25 10:27

qqq3333

The future will bring different challenges

2022-04-25 10:28

stockraider

Do not make investment so difficult loh!

If u stick to fundamental investment u will be successful loh!

But must have patience in your investment mah!

2022-04-25 13:11

stockraider

Successful is investment is not difficult mah!

2022-04-25 13:12

Fundamental Trader

KOTRA

2022-05-05 10:41

Collin59

buy back saham btcoin gg already apa robot la ai all gg

2022-05-05 12:00

speakup

look like a lot ppl sell plantations swap to oil & gas like Hengyuan & Petron

2022-05-05 14:26

Fundamental Trader

Is today the recovery?

2022-05-10 10:15

amateurJR

Today mild rebound then cont drop further.

2022-05-10 11:47

xskyriver

@Fundamental Trader,
It appears that ESCERAM spent it's cash for acquisition of Evermix Concrete Sdn Bhd.
Whats your thought about this?

2022-05-10 20:30

cheahsk

Would appreciate very much if you can commenet on Favco.

2022-05-10 21:51

Fundamental Trader

Take profit Harison to switch to Kotra.

2022-05-11 09:24

Fundamental Trader

@xskyriver If i haven't bought it yet, i would rather avoid holding such M&A to avoid risk exposure.

@cheahsk I don't look at low ROE stocks.

2022-05-11 09:27

Fundamental Trader

Need to remind readers that the purpose of this blog is to punish low ROE and FCF stocks in malaysia, especially those that cannot even hold their Debt/Equity<1 and Current Ratio>1. Investors need to avoid buying such low quality stocks.

2022-05-11 09:49

stockraider

Yes....after Favco 93 sen dividend completion, its ROE will improve to above 15% pa loh!

2022-05-11 10:38

Fundamental Trader

Time to buy gold (tomei) again?

2022-05-17 07:35

qqq3333

buy gold for diversification is for the filthy rich but many poor people also pretend they are rich and go buy gold.

2022-05-17 13:14

speakup

sapnrg up 78%
serba up 58%

2022-05-17 13:55

Fundamental Trader

SWKPLNT results continue upbeat.

2022-05-20 20:49

stockraider

Fair price Rm 4.00 to Rm 5.00 mah!

2022-05-22 09:14

Fundamental Trader

The market likes to test your patience, grind your faith, and hunt stops before it takes off.

2022-05-25 09:14

Fundamental Trader

KOTRA continue to be a keeper.

2022-05-30 16:10

BobbyAxelrod

Any changes to your list recently, based on the quarterly earning results?

2022-06-11 15:36

Fundamental Trader

KOTRA no change.
BAUTO no change.
HARISON no change.

basically this Q: KFIMA+SWKPLNT+FIMACOR+MASTER+HARISON+KOTRA+TASCO+BAUTO provides good diversifications.

for those who like to time the market, now is a good time to get ready for bulls to return.

2022-06-15 14:55

Fundamental Trader

Market forming a possible double bottom, keep holding good stocks.

2 months ago

Fundamental Trader

Encouraging to see portfolio all green today, keep holding good stocks.

2 months ago

Fundamental Trader

Bulls are back since 20 July 2022.

2 months ago

Fundamental Trader

MHC cashflow is super solid.

1 month ago

Fundamental Trader

VIS rebound is substantial, high upside, looking at 1.26.

1 month ago

Fundamental Trader

more bulls are flushing in.

1 month ago

Fundamental Trader

holdings incl latest addition:

Automotive
Food & Beverages
Packaging Materials
Pharmaceuticals
Plantation
Semiconductors
Technology Equipment
Transportation & Logistics Services

1 month ago

Fundamental Trader

Harison results continues to impress.

1 month ago

Fundamental Trader

JTIASA

3 weeks ago

Fundamental Trader

Thank you HARISON.

1 week ago

BobbyAxelrod

Any updates on your list recently? What's your thought on the looming recession and how does it impact your holding and portfolio as a whole?

1 week ago

Sslee

I can only wish he put up his portfolio like what Philip did.

1 week ago

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