MR Tan, market has amazing power of discounting at least 30% of your cash on hand as you always keep minimum 30% cash on hand for the past 10 years. Now you keep 50% in cash so RM1.50 cash x 50%=RM0.75 Does it explain the DISCOUNT?

No need to search for another. Just buy Coke.

If you are going to be capital intensive, Buy more into plantation as the yield/cash flow is good for well managed company. And the land will appreciate in Long term Unlike other Capital Intensive expenditure into machine or equipment.

Advantage of Individual investor is that we are Not buying in bulks/or choose to take control of the company.

Warren comments that return for capital intensive company is not going to be spectacular but if well managed is to be above average. This is pulling down his overall portfolio return in recent years. After study Icap portfolio, conclusion is the same which is those capital intensive company are not doing well But those with Strong brand name with less capital intensive are phenomenal.

huge potential company with mismanagement ya.

thanks uncle.I am learning.

In fact the total market agrees with you and every body knows how badly managed felda is and that is why price drops 20% since inception.

I got to agree that company is not well managed and totally disorganised and there is No control over a single things. Might be stealing corruption and so on. Now going forward is what i am more interested about how to unlock value. FYi i am a long long time fan of UP.

U say it well and say it all and you know the best ya and i totally agreed with you. So things can Only be improved from here ya. Look at the effort of past one year and i like what is happening. There is pressure and will for things to happen.

Price drop 20% prevails certain value.

Now Privatised and Corporatised.

thanks.

this is the company that you Only need to do Management Control Internal Restructuring Acquiring Reorganisation Consolidation Replanting then the value will be double up.

Rooms for operational improvement short term and long term and so will be the profits.

Amazing. I don't have this kind of return in One year.

I can't imagine what price felda would be in 20 years time. Should be very exciting ya and I am happy to wait longer than that.

if you can wait for 20 years time, I think you can enjoy your real return and wealth.

Remember You can only enjoy your return after 20 years or more of compounding return.

Yes asset allocation and portfolio diversification and cash level will sacrifice certain return at times. But do it in the context of ETERNITY and peace of mind as investment will bear best return in long run with comfort of mind. Not mind of speculation. Respect the market as the way it is. Not our way.

Long term earning and business perspective is true Price Volatility is true One is predictable and the other one is unpredictable. Focus on what we can do and do it well and don't neglect asset allocation and portfolio diversification among different asset class and money management. Be comfortable with certain cash level on hand. We should be at investment efficient frontier.

Only a Businessman with acute business sense and industry know how will be able to know. To me the yardstick are strong branding professional management power of pricing and more importantly recession proof.

Well quite boring ya. It should be the way then. Lots of people try to make it more exciting more complicated than it should be.

Lessons learned and taken to heart and grave.

there are 3 things that we could not understand or estimate:
1) The amount of Forces that is pulling our loved one down.
2) The amount of struggle that they have gone through to fight those forces
3) We are not sure if we are going to be better in their shoes as we don't know the problem and diagnosis.

Just be flexible and balanced up ya. If you have more than be thankful and humble and charitable. If not be grateful being positive and enjoy life as well.

I am contented with salted fish and curry.

Someone contented with fish. Someone must have prawn.

well, it does make me think if i really want to become fisherman.

So retirement figures or financial safety net is still relevant.

fisherman could be right if the fish is always there.If not, ...

from here, your capital would be double up in 20 years time Not counting stock price appreciation/special dividend. Your return will be quite satisfactory if you invest in Right business and company. Everybody can do that actually.

A simple formula would be Looks out for companies with dividend yield plus minus 5%. Most companies stated above are giving out that yield. So you will get back all capital in 20 years time or less(20/5%)as Yield expansion and profit growth will definitely shorten the period of your capital repayment. After capital repayment, the stock price is your capital gain. Yield expansion/profit growth/company valuation/Stock price will usually go up together. Looks out for company which can do that year after year.

There is no reason Not to like Petronas counter forever.

soon or later

Lets see KC would one day take up the challenge of managing a fund for all of us.

Prove that holding on Good business is a generation wealth and as solid as Gold and lasting as land value. Pass it then to next generation. Then the purpose is done.

You might make it Big in FACB this time, who knows and forget what I say. So what you will do next is to continue to look for companies like this day and night.I wish you don't go on this way. I rather prefer you lose out this time.

For FACB again, Market has amazing ability to discount all your cash on hand for the time being. The question is of good reasons or bad reasons? I am not that of interested as too many cash rich company, too many undervalued company, too many good profit making company, too many good management company, too many Good yield without Good Business. TO me pricing is secondary. Show me the Good business.

Surely, it does also explains why Boilermech and QL is outperforming than its peers.

OR FACB might invest cash in a new business and make a loss as management has not demonstrated its capability yet. Try to understand a company by business perspective and it explains as it also guided Warren for past 30 years and Warren always opened his speech by saying so year after year that this is one thing that has guided him. Does it explain the low valuation/below NTA of one-timed Proton and long-timed Kluang? Does it explain the bizzare valuation of ICap? Or Does it explain the high flying high multiple of Amazon or Google or now low-lying Apple? On that note, if the closed end funds of ICap is managed by KC, ha, it might be a premium as the way i look at it from business perspective.

For the short period of time, 3 company illustrated by KC, namely, Kfima, Prestarianf and Ptaras has recorded 20% return that is what i mean by the opportunity cost.

In case of FACB is a opportunity cost of investing in a company with good business value it explains the deep discount amidst uncertainty of a company direction or incapability of a company to find a good business for years. It is a discount with good reasons.

Ya 123 is too argumentative and boring and 456 is hard facts and figures and eye glaring. So we just to do 456, how can 123 be wrong if 456 is fantastic, right? Make money first and study later right?

Growth is Not a concern to me either. Cash is a concern. Why should we concern about growth as long as company has cash right? Here we should focus on good quality long term growth strategy without debt financing.

Investor should try to understand item 1 and 2 and 3 better with deep business sense and common sense. Item 4 and 5 and 6 is quite time testing and might change quarter to quarter and year to year sometimes because of market conditions. Item 1 and 2 and 3 will not change for long period of time as good management is in place and economy moats is there. My emphasize is always on 123 then 456 Not the other way around. TOO many people is doing 456 Only. Why? Speculation? Too hard to resist 456? Too difficult to understand 123? After 123 and then 456 there is only Not the company that we want? Foe me, if I cant understand 123 of a company, there is No need to go thru 456. Does not matter if profit soars, deeply undervalued, cash rich, high margin and so on as i cant understand 123.

A simple metric would be when price moves up or down 20%. What should I do? Is the reason I bought at the first place still there. Am I wrong about the company or management or even business or it is just general market condition or retracement? IF i am wrong, what should I do? The decision is clear. The same as price moves up, is it of Good reason as well? IF i am right, what should I do? Should I hold on and keep investing? The decision is clear as well.

KC from your comment above are you selling the winner and keeping the loser? Winner is there for a good reason and Loser is loser because of good reason as well.

Look at our few Generational wisdom of keeping the gold inside the Safe. Also look at the value of our old generational house that we inherited from our grandparents and parents have kept for us. Well they gain some or loss some in stocks.

Look for the purpose first Not so much on return yet. For example purpose of owning good business via stock investment. It is the same as other asset class.

More than 50% of my likes and portfolio still in stocks investment. Still I learn that the purpose of other investment class. Like Gold is for Emergency Back up Currency. The most undestroyable asset is Land.Land is forever there and thus the real tangible asse. Supply and demand of Commodity. Look for the scarcity of Resources etc.