If investing is participating in a Business of a company, then lets understand:

what kind of business that we are investing into and Why this company is doing better than the rest? It is an important question. Lets give some thought into its business operation efficiency, business philosophy, its Business model and so on.

There you will find something there is different than the rest.

Lets understand the most basic thing first and there is no free lunch ya.

Surely i can understand the frustration of investing as we can't take control of investment climate, growth rate, inflation rate, long time horizon of investing period and price volatility and speculative nature of market and Sometimes Price does not move for years. What else?

Will all these create confusion and doubt? Yes.

What can we do about all these, Nothing.

Lots of investors like to invest in hype, turnaround, transformation, or next big things,or high tech stocks that sometimes we don't even understand the Business. So you see sometimes we are looking for high rate of failure ourselves if not betting our lucks.

A long lasting and boring durable business which has been proven to last in good and bad times which has been Winners all along will Most likely to remain as Winner again and again. You see we are looking for High Rate of Success. A small range of diversification or a small basket of Good Business is a good approach.

Maintaining a such a portfolio should provide a safe net for retirement.

Honestly for trading purpose, i can only see a few trading opportunities in a whole year. A good trader will seize that kind of opportunity.

Really A good trade is Only a few time in a whole year ya.

And if you are a trader be a top one. Please have risk management and money management at all time and I have to respect that as well.

Anyhow, i have yet to see a Good trader that can last long enough.

stock selection and preference will mostly depends on a person character and personality, comfort zone, risk appetite, competency and investment philosophy and i respect that.

Agreed.

Too much emphasis on speculative earning by HLG which forms the Basis of valuation. The reports is misguiding to the true value of a company.

Anyhow the investing community has put too much emphasis on Quarterly and yearly earning until it sways the price too much in such a big volatility. Thus create unnecessary fear and greed.

Slowly and eventually, investing public starts to speculate earnings and believe the quarterly earning has the predictive power into the company futures and thus determine the company core valuations.

That is Not totally true.

U see i kena hentam by ganasai and i have to accept his argument.

KC stock preference is quite personal much more than food music and clothing selection. You can write about it But discussion is not easy one.

ten stocks from different sectors is a max for me.

KC the problem is lots of analyst just take the current year of earning or prospective earning of next two years as the Basis of Valuation. It is a very shallow valuation.

We all know current earning or speculative earning will manipulate the PE ratio in wide range. That is how they justify the valuation and they even skip the Balance sheet and cash flow and Business operation or debt ratio.

Creative Accounting, Round Trip, Pyramid Scheme, Shell Company, Inflated Revenue, Inflation of Asset, Paper Profits, Related Parties Transactions, outright fraud and so much more accounting gimmicks.

We need a fraud school to educate the public. KC has done a great services as usual.

I wonder why KC should look at possibly turnaround story at this stage where as there are so many Winners in your portfolio with so much good business value.

I remember when Warren first closed down his funds in 1970s and reinvested back few years later and he never did that again in the next 40 years until today. And he was only at the Buy side on each crisis. 2008-2009 crisis is No different again.

Know why? The experience taught him well. We are so amazed how fast the stocks with Good business value bounced back and even higher. And he was so right in every crisis till now. He knows the what the Winners will do. He knows what Good business is.

What can destroy the Good Business Value? Inflation? Recession? Currency devalue? Nothing has proven the case so far. This is Not what i say But the market has said so.

I have 100% trust in your portfolio and stock selection. Surely it will go higher and keep performing.

i will smell my way to the company where there is lots of cash. Good smell and cash is shining like a Sun.

Dear Sun, shine for me everywhere that i go.

well i decide to make myself a name plate first to attract all good lucks and chase away all bad lucks.

ya ya I can see that it is a sun behind. Luckily i am not a dracula.

Wah somebody name plate is shining at my eyes.

Having said that Big supply with slower growth expectation might provide low cost environment for Business.

And we would not have another price shock and high inflation when demand picks up as happened in 2008-2009 when crude spikes to USD120.

I see positives in all happened for long term Good.

Correction is always of mismatch of Supply and Demand.

In recent case, the supply is flooded such as big IPO, Bonus issue, Right Issue, Oil discovery, Big shale gas supply, good palm harvest and new plantation in africa and so on. Well the demand is expected to be sluggish due to national debt, Ebola, GST, Rate hike and so on. So there is a mis match ya.

The selection criteria must follow the sequence of A B and C.

But it is so hard to find business with good value and long term growth, and we have no patience to hold forever, so what do we do in short term?

Lets go for High yield. Lets go for company below net asset value.Lets go for turnaround stories. Lets go for transformation. Lets go for a wild ride. Let's go for Trading.

Dear sense maker,

it is going to surprise investor that the expected return could be dividend yield minus capital gain. We know many reasons for this to happen.

common sense telling us that there is No point in the market for the dividend given the market volatility.

Good dividend must come with long term growth and Good Business value and stable business model.

good read on KC articles.

The first criteria must be the winner and leader of respective industry of utmost good business value.

I am more than happy to Buy at big down day.

keep it up.

In every market correction, Market will always weed out the loser and award the Winners. That is its Job and Balancing Act. Some calls it Great Rotation.

Article is Highly commended in this Down market.

well market is so kind to each of us and gives us extreme advantage whereby market will absorb everything that you throw and keep quiet.

And market will also supply everything that you want to Buy and never ask a question.

Beach Boy, Stop peli me ok?

Suntzthe, i remember Stockraider once told the story of High Hurdle Rate of Investment, remember?

Once the challenges is greater, your stock picks criteria must be stricter and be more defensive and gear towards more quality and look for more Margin of Safety.

We do learn some sound advice from Forumners and Articles do appeals to lots of traders and speculators.

Come on, the Articles has great intention and I respect it.

Sunztzhe, you just need to care about your own stock picks to make money. End of story. Not fair?

Even the market tumbles but your stock picks perform. Cannot meh? Market is in constant of Great rotation and weeding out Weak holders and losers and awarding winner. Not fair? Too complicated for you?

my dear, 2/3 down.1/3 up. Is it not your stock picks? Even 8/10 down, 2/10 up, is it not your stock picks?

as long as my stock keeps performing, why do i care? If you can understand then Good.

End of day, to make Money, it is your stock picks.

Your confidence level depends on your stock picks. Cash or keep investing, it is your stock picks. Long term investment or not, it is your stock picks. Average down or Not, it depends on your Stock picks. Recession or No, does not matter, as long as your stock picks perform, Fair?

Economics noise? What does it make a difference? as long as your stocks perform, right?

Even in Bull market. we might lose our pants if we don't care about stock picks and valuation and know nothing about Business, fair?

End of day it is your stock pick ya.

To make money, it is your stock picks. Overvalue or Undervalue, it is stock picks. Average down or Not, it is your stock picks. Long term investment or Not, it is your stock picks. Cash or keep investing, it is your stock picks.

Agreed.

My Dear, end of Day

To make money, it is Stock pick. To average down or not, it is Stock pick. Long term wealth investment, it is stock pick. Overvalue or undervalue, it is stock pick.

Better understand the Business and its valuation instead of economics noise.

Ha Creative accounting, is it? I think the Doer's purpose and intention is more important. Well, i still think there is No need of Creative Accounting.

TQ

Well i do agree Not to average down and doing nothing. Very sound advice. TQ

My Dear, in stock investment we are Only worried about long years of Bear market where there is like lost generation and long years of sub-par returns.

We Only talk about it when it is there ya.

even it is 20% correction into bear market, it depends how long we stay there. It can be V shape rebound Or years of Bear market.

In stock investment, we Only worry about long years of Bear market.Years of Bear market will be like lost generation and investment return will be low and sub-par for many years.

Like.

Think logically what is Investment and define it and stick with it and there is How we start.

We are besieged by Time factor. SO Find Investment value which are Timeless or Rich in Time value.

Dear Friends, this is market who does Not know who you are and don't care who you are.

Whether you are learned or Unlearned. Whether you are a Saint or a Sinner. Whether you know yourself or Not. Whether this month is your lucky month or Not. Whether you are discipline or Not. Whether you are Long term or Short Term. Whether you are spiritual or Not. Whether you are FA or TA.

This is Market and we should respect the Way it is.

Yeo, Some medium sized company with Boring and stable Business will be Top Priced one day ya.

third Para...as you say and say it well and i like it " Unless the Business is Boring and stable."

Looking at all Top Priced companies in Bursa, all Boring and Stable. Nothing exciting at all.

Market will test the theory of value investing numerous times again and again and turn it upside down.

The value investing still stands the test of time. Great Things Only worked out By Great Character and Discipline and Mentality.

well as Bsngpg said, some lemon some million dollar stocks. Well good enough.

Don't give up and lose faith because of lemons or afraid of lemons or all kinds lemon stories all around you.

Those who cant make it will tell you Not even try, fair or not?

Why long term holding? friends, we really need the Help of long term compounding at the later stage of investment.

Mentality and Purpose will make the different. Invest like you buy property. In property it is location while in stocks it is Business Value. 20 years would be a fairy tale story.

If you invest Rm50k in either one of the company such as Public, Nestle, Utd Plant, LPI, Maybank..20 years ago, i believe the value of stock price plus div would be more than Rm1 mil by Now.